Question 2B: An old machine was traded in for a new machine. The old machine had cost price of Rs.140, 000, and its accumulated depreciation amounted to Rs.128, 000. The list price of the new machine was Rs.160, 000, but a trade-in-allowance of Rs. 15, 000 was received for the old machine after paying Rs. 50, 000 cash and issuing a notes payable of Rs. 95, 000

Instructions: Give the entry to record the disposal of machine.

Question 2C: - Good Earth Mining Company purchased the Northern Copper Mine for Rs. 21, 000, 000 million cash. The mine was estimated to contain 2, 500, 000 million tons of copper and to have a residual value of Rs. 1, 000, 000 million. During the first year of mining operations at the Northern Copper Mine, 100, 000 tons of copper were mined.

Instructions: - Compute depletion expense per ton and give a journal entry to record depletion during the year.