Inflation Dought ?

Ankit Madhogarhia (Pursuing Final) (531 Points)

14 March 2011  

Hi,

I Have a Dought .Suppose I purchase a Machinery for Rs 100000/- in 1985 and sold the same machinery today at a price of Rs 2000000/- and as per the cost inflation index the cost of the machiney is Rs 1800000/- only.how should i closed the Machenery aacounts.for the reference i am attaching the ledger of machinery a/c for your reference.

 

Machienery A/c

Particular

Amount

 

Particular

Amount

To Bal b/d

100000

 

By Bank A/c

2000000

To Profit A/c

200000

 

 

 

 

 

 

 

 

 

300000

 

 

2000000

Regards,

Ankit Kumar