H Ltd. charged depreciation at 10% p.a. on diminishing balances. On 1.1.2013 there was a balance...
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H Ltd. charged depreciation at 10% p.a. on diminishing balances. On 1.1.2013 there was a balance of 2,43,000 in Machinery Account. On 1.7.2013 new machine costing z 72,000 was installed. Installation charge amounted to ? 3,000. On 1.7.2013 a machine was sold for 43,000 the cost of which was 60,000 as on 1.1.2011. It was decided in 2013 to change the depreciation method from diminishing balance to straight line with effect from 1.1.2011, keeping the rate of depreciation same as before. Show the Machinery Account in the books of the company for 2013. H Ltd. charged depreciation at 10% p.a. on diminishing balances. On 1.1.2013 there was a balance of 2,43,000 in Machinery Account. On 1.7.2013 new machine costing z 72,000 was installed. Installation charge amounted to ? 3,000. On 1.7.2013 a machine was sold for 43,000 the cost of which was 60,000 as on 1.1.2011. It was decided in 2013 to change the depreciation method from diminishing balance to straight line with effect from 1.1.2011, keeping the rate of depreciation same as before. Show the Machinery Account in the books of the company for 2013.
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