The balance of fixed assets of Breej Ltd. at the end of 2018 and 2019 were Rs 5,70,800 and Rs 6,15,300. During the year 2019 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets.

Question

Quizplus · Accepted Answer

The purchase of fixed assets can be determined by adjusting the sale of assets and the change in the balance of fixed assets. The balance increased from Rs 5,70,800 to Rs 6,15,300, an increase of Rs 44,500. Since a machinery costing Rs 60,000 was sold, the total purchase is the increase in balance plus the cost of the sold machinery: Rs 44,500 + Rs 60,000 = Rs 1,04,500.

The Balance of Fixed Assets of Breej Ltd