. LONG ANSWER TYPE QUESTIONS
Q.1. X, Y, Z company purchased a machine on 1st January, 2011 for 38,500 and
spent 2,000 for repairs and 1,500 for its installation. Another machine was purchased
for 12,000 on 1st July, 2012. Machine purchased on Jan. 1, 2011 was sold for 34,000
on 1st July, 2013 and on the same date a new machine was purchased for 35,000.
Depreciation is charged @ 10% per annum by diminishing balance method. Prepare
Machinery Account for the period 2011-2014.
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