Answer Posted / khazi raza mohammed

There are 3 golden rules in Accounting..

1. Personal accounts:-
Debit the receiver.
Credit the giver.
2. Real accounts:-
Debit what comes in.
Credit what goes out.
3. Nominal accounts:-
Debit all expenses and losses.
Credit all incomes and gains.

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2455

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1969

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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

2018

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