First Question Bit-C......
In the Trail balance of M/s Sun Ltd as on 31-03-2011, balance of machinery appears5,60,000. The company follows rate of depreciation on machinery at 10% p.a. on straight line method. On scrutiny it was found that a machine appearing in the books on 01-04-2010 at1,60,000 was disposed of on 30-09-2010 at1,35,000 in part exchange of a new machine costing1,50,000.
You are required to calculate :
1. Total depreciation to be charged in the profit and loss account
2. Loss of exchange of machine
3. Book value of machinery in the balance sheet as on 31-03-2011
Please explain me how to solve this question...Thank you.
Sneha
CAclubindia
