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M.252 An Aid to Accountancy—CBSE XII

Working Notes:
1. Dr. MACHINERY ACCOUNT Cr.

Particulars ` Particulars `
To Balance b/d 33,00,000 By Bank A/c (Sale proceeds) 9,000
To Bank A/c (Bal. Fig.) 9,40,000 By Accumulated Depreciation A/c 30,000
—Purchase (On Sold Machinery)
By Loss on Sale of Machinery A/c 1,000
(Statement of Profit and Loss)
By Balance c/d 42,00,000
42,40,000 42,40,000

2. Dr. ACCUMULATED DEPRECIATION ACCOUNT Cr.

Particulars ` Particulars `
To Machinery A/c (Sold Machinery) 30,000 By Balance b/d 3,00,000
To Balance c/d 4,00,000 By Statement of Profit and Loss (Bal. Fig.) 1,30,000
(Depreciation)
4,30,000 4,30,000

3. Discount on Issue of Debentures ` 20,000 is adjusted (written off) from Securities Premium Reserve as per
Section 52(2) of the Companies Act, 2013.
Since discount on issue of debentures is not written off from Statement of Profit and Loss, it is not adjusted while computing
Operating Profit before Working Capital Changes.