Question: A tractor which cost Rs.30,000 had an estimated life of 5 years and an...
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Question: A tractor which cost Rs.30,000 had an estimated life of 5 years and an estimated salvage value of Rs.10,000. Straight line depreciation method was used. Give the general journal entry required by the following assumptions:
A. The tractor was sold for cash Rs.19,500 after 2 year use.
B. The tractor was traded in after 3 years on another tractor with a fair market value of Rs.37,000. Trade in allowance was Rs.21,000.
C. The tractor was scrapped after 5 years use.
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