Chapter - 10 (Question - 23 Depreciation, Provision and Reserves)

 

Question - 23 

On 1st April 2010 a firm bought a machine for Rs, 2,00,000 on 1st August 2013 sold it for Rs. 90,000 being obsolete Depreciation is charged @10% p.a. on original vost on 31st March each year prepate necessary ledger accounts :

1. When provision for depreciation account is not opened 
2. when provision for depreciation account is opened in books.