Answer 1

Books of Priyank Brothers Machinery Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
April 01		Balance b/d		20,00,000	April 01	Provision for Depreciation		2,25,000
					April 01	Bank		5,00,000
					April 01	Profit and Loss (Loss)		25,000
					2013
					Mar.31	Balance c/d		12,50,000
				20,00,000				20,00,000

Provision for Depreciation Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2012					2012
April 01		Machinery		2,25,000	April 01	Balance b/d		8,00,000
2013					2013
Mar.31		Balance c/d		7,00,000	Mar.31	Depreciation (for the year)		1,25,000
				9,25,000				9,25,000

Working Notes

1 Calculation of Loss on Sale of Machinery

Particulars	Amount (Rs)
Original cost of Machine Sold	7,50,000
Less: Accumulated Depreciation on Machine Sold, for 3 years, (7,50,000 × 10% × 3 years)	(2,25,000)
Book Value of Machine Sold	5,25,000
Less: Sale Value	(5,00,000)
Loss on Sale of Machine	25,000