Question - 28 

On 1st April 2005 Malhar Ltd. purchased a machine cast Rs. 60,000 on 1st October 2005 additional machineries for Rs. 40,000 and on July 2006 for Rs. 20,000 were purchased on 1st January 2007 one third of the plant become obsolescence so it was sold for Rs. 16,000 which was purchased on 1st April 2005 in the books of Malhar Ltd. depreciation is charged at the rate of 10% yearly under fixed installment method where the firm closed it account on 31st Dec. every year.