Advertisements
Advertisements
प्रश्न
A firm acquired a machine on 1st April 2015 at a cost of ₹ 50,000. Its life is 6 years. The firm writes off depreciation @ 30% p.a. on the diminishing balance method. The firm closes its books on 31st December every year. Show the machinery account and depreciation account for three years starting from 1st April 2015.
Advertisements
उत्तर
| Date | Particulars | ₹ |
| 01.04.2015 | Machinery purchased | 50,000 |
| 31.12.2015 | Less: Depreciation @ 30% | 11,250 |
| 01.01.2016 | Book value | 38,750 |
| 31.12.2016 | Less: Depreciation @ 30% | 11,625 |
| 01.01.2017 | Book value | 27.125 |
| 31.12.2017 | Less: Depreciation @ 30% | 8,138 |
| 01.01.2018 | Book value | 18,987 |
Machinery A/c
| Dr. | Cr. | ||||||
| Date | Particulars | L.F. | ₹ | Date | Particulars | L.F. | ₹ |
| 01.04.15 | To Bank A/c | 50,000 | 31.12.15 | By Depreciation A/c | 11,250 | ||
| 31.12.15 | By Balance c/d | 38,750 | |||||
| 50,000 | 50,000 | ||||||
| 01.01.16 | To Balance b/d | 38,750 | 31.12.16 | By Depreciation A/c | 11,625 | ||
| 31.12.16 | By Balance c/d | 27,125 | |||||
| 38,750 | 38,750 | ||||||
| 01.01.17 | To Balance b/d | 27,125 | 31.12.17 | By Depreciation A/c | 8,138 | ||
| 31.12.17 | By Balance c/d | 18,987 | |||||
| 27,125 | 27,125 | ||||||
| 01.01.18 | To Balance b/d | 18,987 | |||||
Depreciation A/c
| Dr. | Cr. | ||||||
| Date | Particulars | L.F. | ₹ | Date | Particulars | L.F. | ₹ |
| 31.12.15 | To Machinery A/c | 11,250 | 31.12.15 | By P & L A/c | 11,250 | ||
| 11,250 | 11,250 | ||||||
| 31.12.16 | To Machinery A/c | 11,625 | 31.12.16 | By P & L A/c | 11,625 | ||
| 11,625 | 11,625 | ||||||
| 31.12.17 | To Machinery A/c | 8,138 | 31.12.17 | By P & L A/c | 8,138 | ||
| 8,138 | 8,138 | ||||||
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
Why depreciation is charged even in the year of loss?
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the total depreciation is equally spread over the life of the asset.
State whether the following statement is True or False with reasons:
Depreciation is charged on Current Assets only.
State whether the following statement is True or False with reasons:
Depreciation need not be charged when business is making losses.
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
Complete the following sentence:
______ is the value which an asset realises at the end of its useful life.
A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.
A boiler was purchased on 1st January 2015 from abroad for ₹ 10,000. Shipping and forwarding charges amounted to 12,000. Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000. Calculate depreciation for the first 3 years @10% p.a. on diminishing balance method assuming that the accounts are dosed 31st December each year.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
