`{:("Following balances appear in the books of X Ltd. as on 1st April, 2018: ",₹),( "Machinery A/c","5,00,000"),("Provision for Depreciation A/c","2,25,000"):}`
The machinery is depreciated `"@ "10%` p.a. on the Fixed Instalment Method. The accounting year being April-March. On 1st October, 2018, a machinery which was purchased on 1st July, 2015 for Rs 1,00,000 was sold for Rs 42,000 plus CGST and SGST `"@ "6%` each and on the same date a new machine was purchased for Rs 2,00,000 paying IGST`"@ "12%`. Prepare Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2019.

Answer

[Loss on Sale of Machinery-Rs 25,500; Balance of Provision for Depreciation A/c-Rs 2,47,500; Balance of Machinery A/c-Rs 6,00,000.]

Explanation

Total Depreciation for `3^(1//4)` years (from 1st July, 2015 to 1st October, 2018) provided on machine sold `= Rs 1,00,000xx10//100xx13//4 = Rs 32,500.`