17 October 2012
Akhil Ltd. imported a machinery on 01.07.2002 for Rs 1,28,000. paid customs duty and fright Rs. 64,000 and incurred erection charges Rs.48,000. Another local machinery costing Rs.80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery (Value one-third) got out of order and was sold for Rs. 27,840. Another machinery was purchased to replace the same for Rs.40,000. Depreciation is to be calculated at 20% p.a. 1- Profit or loss on sale = ? 2-Closing balance of Machinery = ?
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