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Answer / vedant
stp is systematic transfer plan
if you want to reedem units of mutual fund rather than
transfering all the amounts into other scheme you use a
systematic transfer plan where in you wtransfer a fixed
amount every month from 1 fund to another
eg-stp of 5000 per month from equity fund to a debt fund.
note-stp is only possible between two schemes of same mutual
fund.
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Raj & Raj Ltd purchased a machinery on 01.01.1996 for Rs.88,000.The life of the machine estimated to be 5 Yrs.It was calculated that the old machinery would fetch Rs.8000 at the end of its useful life.it was decided to replace the machinery at the end of the 5th year by setting up depreciation fund and invest the annual depreciation (along with interest earned each year) in gilt edged securities carrying interest at 5% p.a. At the end of the 5th Year the securities were sold for Rs.9000.As per the sinking fund table Rs.14,478 is to be invested every year.A new machine was purchased on 01.01.2001 for Rs.1,00,000.pass the journal entries and show the ledger accounts
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