machinery was purchased on 1 jan 2012for 500000.on 30june 2014 machinery the original value of which was 8000 on 1 january 2012 was sold out for 6000...pls explain what is this original value and how to sale and charge deprection
Pallavi
The machinery is purchased on Jan 01, 2012 for Rs 5,00,000. A part of this machinery costing Rs 8,000 was sold for Rs 6,000 on 30 June 2014.
Original value means the amount at which the asset is acquired. The accounting treatment for such type of questions can be understood from the link provided below:
https://www.meritnation.com/ask-answer/question/a-firm-purchased-machinery-costing-rs-68-000-on-31st-march/depreciation-provisions-and-reserves/7024858
In case you get stuck anywhere, you can always get back to us.
The machinery is purchased on Jan 01, 2012 for Rs 5,00,000. A part of this machinery costing Rs 8,000 was sold for Rs 6,000 on 30 June 2014.
Original value means the amount at which the asset is acquired. The accounting treatment for such type of questions can be understood from the link provided below:
https://www.meritnation.com/ask-answer/question/a-firm-purchased-machinery-costing-rs-68-000-on-31st-march/depreciation-provisions-and-reserves/7024858
In case you get stuck anywhere, you can always get back to us.