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Answer Posted / shiva krishna g
A ratio is an expression which compares quantities relative
to each other The most common examples involve two
quantities, but in theory any number of quantities can be
compared. In mathematical terms, they are represented by
separating each quantity with a colon, for example the
ratio 2:3, which is read as the ratio "two to three". The
quantities separated by colons are sometimes called terms.
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Raj & Raj Ltd purchased a machinery on 01.01.1996 for Rs.88,000.The life of the machine estimated to be 5 Yrs.It was calculated that the old machinery would fetch Rs.8000 at the end of its useful life.it was decided to replace the machinery at the end of the 5th year by setting up depreciation fund and invest the annual depreciation (along with interest earned each year) in gilt edged securities carrying interest at 5% p.a. At the end of the 5th Year the securities were sold for Rs.9000.As per the sinking fund table Rs.14,478 is to be invested every year.A new machine was purchased on 01.01.2001 for Rs.1,00,000.pass the journal entries and show the ledger accounts
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