A firm, writes off 95% of the cost of machinery acquired over a period of 10 years by the straight line method. Full depreciation is written off even if the machinery is in use for part of a year. On 31.12.2013, the original cost of machinery in use was as : Purchased in 2004 or earlier ~ 57,000; Purchased in 2006 ~ 1,30,000; Purchased in 2009 ~ 40,000. On 30.6.2014, a machine which had cost ~ 10,000 in 2003 was disposed off for ~ 900 and on 30.9.2014 a machine installed in 2012 at a cost of ~ 20,000 was destroyed in an accident and ~ 11,800 was received from the insurance company in settlement of the claim. On the same date, a new machine costing ~ 25,000 was installed. Show the Machinery Account for the year 2014.

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Machinery Account for the Year 2014 A Ltd DateParticularsDebitCreditBalance Balance as on 0101201457... View the full answer