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Posted: April 13th, 2023
Accounting
A business firm purchased two machines on 1st January 2017 at a cost of Sh1,500,000 each. Each machine had an estimated useful life of five years and a nil residual value. The straight line method of depreciation is used. On 31st March 2019, one machine was sold for Sh.800,000. The second machine was sold on 1st December 2019 for Sh.250,000.
Required:
a) Machinery account (3 marks)
b) Provision for depreciation account for machinery (3 marks)
c) Disposal of machinery account (4 marks
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