When machinery is sold at profit then we pass the entry
Bank a/c......dr.
To machinery a/c
To profit on sale of machinery
Then how do we transfer this profit on sale of machinery in machinery account while maintaining accumulated depreciation along with it? Plz explain with reason

Dear Student

Suppose A machinery costing Rs 1,00,000/- having accumulated depreciation of Rs 10,000/- is sold at Rs 1,10,000/-. Here for the purpose of recording this sale and profit on sale we would record is as follows in the steps :

1. Transferring of Accumulated Depreciation A/c to machinery A/c 

Accumulated Depreciation A/c	Dr.	10,000
To Machinery A/c			10,000
(Being machinery brought down to WDV)

2. Now the sale entry:

Bank A/c	Dr.	110,000
To Machinery A/c			110,000
(Being Machinery sold)

3. Booking of Profit on Sale of Machinery - Since Machine's WDV is Rs 90,000/- and we sold it at Rs 1,10,000/- we got a profit of Rs 20,000/- which shall be recorded in Machinery A/c.

Machinery A/c	Dr.	20,000
To Profit on Sale of Machinery A/c			20,000

The above is the whole step by step process for sale of machinery at profit.

Regarding your doubt, For saving time and space we pass the single entry for recording sale and Profit on sale which is recorded in the machinery account. i.e if the above 2nd and 3rd entry are combined then the below entry is formed.

Bank A/c	Dr.	110,000
To Machinery A/c			90,000
To Profit on Sale of Machinery A/c			20,000
(Being Machinery sold at a profit of Rs 20,000)

Therefore this is how we transfer profit on the sale of machinery to machinery account.

Hope this helps
Regards