A joint stock company had bought machinery for Rs.1,00,000 including there in aboiler worth…

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A joint stock company had bought machinery for Rs.1,00,000 including there in aboiler worth Rs.10,000. The machinery account was for the first 4 year credited fordepreciation. On the reducing instalment system @ 10% p.a during the fifth i.e thecurrent year, the boiler become useless or account of damage to some of its vitalparts. The damaged boiler is sold for Rs.2,000 which amount is credited tomachinery account prepare the machinery account (or current year adjustingtherein the cash received for and he loss sufferedon ) the damaged boiler, and thedepreciation on of machinery for current year.

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