a) A company purchased a machine costing Rs.220,000 on 1st Baishakh 2078. The useful life of the machine is 5 years with expected salvage value of…
BBS Financial Accounting and Analysis · 2081 · Solved Question with Answer
a) A company purchased a machine costing Rs.220,000 on 1st Baishakh 2078. The useful life of the machine is 5 years with expected salvage value of Rs.20,000. The company decided to follow the straight line depreciation policy. At the end of Ashwin 2080, the company sold the machine for Rs.270,000 and purchased another machine for Rs.500,000. The books are closed on 31st Chaitra every year.Required: Machinery account for the 1st three years. [5]b. Differentiate between capital revenue and revenue expenditure. [5]