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Following balances appear in the books o...

Following balances appear in the books of M/s Amrit as on 1st April, 2018:
`{:("2018 ",₹),("1st April ""Machinery A/c ","60,000"),(" Provision for Depreciation A/c ", "36,000"):}`
On 1st April, 2018, they decided to dispose off a machinery for Rs 8,400 which was purchased on 1st April, 2014 for Rs 16,000.
You are required to prepare the Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year ended 31st March, 2019. Depreciation was charged at `10%` p.a. on Cost following Straight Line Method.

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The correct Answer is:
[Balance of Machinery A/c (31st March, 2019)- Rs 44,000; Provision for Depreciation A/c (31st March, 2019)- Rs 34,000; Loss on Sale of Machinery- Rs 1,200.]
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