Question :

From the Following information what will be the amount of asset purchased during the year?

Particulars

Closing

Opening

Machinery (At cost)

690000

600000

Accumulated Depreciation

90000

60000

Additional information: During the year a machine coating Rs.50,000 with accumulated depreciation Rs.32,000 was sold for Rs.20,000.

Option 1: Rs.1,40,000

Option 2: Rs.1,20,000

Option 3: Rs.1,65,000

Option 4: None of the above


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Rs.1,40,000


Solution : Machinary Account

Particulars Amount Particulars Amount
To Balance b/d 600000 By Bank 20000
To Profit on sale 2000 By Accumulated dep. 32000
To bank a/c (Purchase) (Bal. figure) 140000 By Balance c/d 690000
742000 742000

Hence the correct answer is option 1.

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