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Question:
A company purchased two rivets making machine on 1 jan 2010 a cost of sh 600000 each.
Each machine had an estimated useful life of 5 years and nil residual values. Straight line method of depreciation is used.
following to an unforeseen slump in the demand for rivet, the company decided to reduce its output and switch to making other product
On 31.03.12 ne rivet making machine was sold on cash basis to a buyer sh 320000.in nov 2012,the company decided to stop making rivet and decided to sell the second rivet at sh 100000 on 31.12.13 in cash.
Find the machinery account,accumulated depreciation accont and disposal account as at 31.12.2013
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