Answer Posted / sanjay d. chavan

BSE Sensex & NSE NIFTY are both Index.
An index is basically an indicator.
For Eg Thermometer which indicates the temperature.

Similarly, SENSEX and Nifty are also indicators. It gives
you a general idea about whether most of the stocks have
gone up or down.

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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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