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Question : Apple Ltd. has Machinery written down value of which On 1st April 2019 was Rs 6,60,000 and on 31st March 2020 was Rs 7,50,000. Depreciation for the year was Rs 40,000. At the beginning of the year, an item of machinery was sold for Rs 25,000 which had a written-down value of Rs 20,000
Question:
Calculate the amount of purchase of machinery.

Option 1: Rs 2,00,000

Option 2: Rs 1,55,000

Option 3: Rs 1,50,000

Option 4: None of the above


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Rs 1,50,000


Solution : Answer = Purchase of machinery is Rs 1,50,000.

Machinery a/c
To Bal b/d 6,60,000 By Depreciation 40,000
To Profit & loss a/c(profit) 5,000 By Bank(sale) 25,000
To Bank (Purchases) 1,50,000 By Balc/d 7,50,000
8,15,000 8,15,000

Hence, the correct option is 3.

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