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Model Test Papers M.407

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* Book value of Machinery on the date of sale (` 1,00,000 – ` 70,000) 30,000
Less: Loss on Sale (20% of ` 30,000) 6,000
Sale Proceeds 24,000
2. Dr. ACCUMULATED DEPRECIATION ACCOUNT Cr.
Particulars ` Particulars `
To Machinery A/c (Transfer) 70,000 By Balance b/d 1,10,000
To Balance c/d 1,50,000 By Statement of Profit and Loss 1,10,000
(Depreciation Provided) (Balancing Figure)
2,20,000 2,20,000

3. Discount on issue of debentures has been adjusted from Securities Premium Reserve as per Section 52(2)
of the Companies Act, 2013. The balance of ` 5,000 in Securities Premium Reserve is after writing off
Discount on Issue of Debentures of ` 10,000.