2. Prepare balance of Machinery account on following dataOpening Balance on 1 jan 2010 - 1,20000Purchase of new machinery in yr 2010- 60,000Destruction of machinery due to fire - 12000What is balance on Dec 2010
Assuming all this is at cost and we don't have to worry about depreciation, AND if the opening balance is 120,000, then Opening Balance on 1 jan 2010 - 120,000 + Purchase of new machinery in yr 2010- 60,000 - Destruction of machinery due to fire - 12000 = balance on Dec 2010 $168,000
