If the question is mentioned to make a machinery account and provision for a depreciation account, if we make a machinery disposal account so will it be counted or not ?

Question

Pratyaksh · Answer

So can you please tell the solution for it

Pratyaksh · Answer

It is mentioned there that provision for depreciation account is maintained and in second part not maintained. It specifies only of prov for dep but in the solution disposal account is also made

Pratyaksh · Answer

Ok but if you see the illustration no 8 in icai module

Krish · Answer

No, It would give the wrong effect

Prasad · Answer

Machine disposal account should be prepared only if specifically asked for, not otherwise. The effect of sales should be shown in Machine a/c itself taking out the entire cost of machine sold (acc dep till date, amount received on sale and gain/loss on sale).

Pratyaksh · Answer

Ok

Manvi · Answer

No

If the question is mentioned to make a machinery account and provision for a depreciation account, if we make a machinery disposal account so will it be counted or not ?

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