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प्रश्न
A manufacturing company purchased on 1st April 2010, a plant and machinery for ₹ 4,50,000 and spent ₹ 50,000 on its installation. After having used it for three years, it was sold for ₹ 3,85,000. Depreciation is to be provided every year at the rate of 15% per annum on the fixed installment method. Accounts are closed on 31st March every year. Calculate profit or loss on sale of machinery.
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उत्तर
Calculation of Profit or Loss on sale of Machinery
| Date | Particulars | ₹ | |
| 01.04.2010 | Plant and machinery purchased | 4,50,000 | |
| 01.04.2010 | Add: Its installation | 50,000 | |
| 01.04.2010 | Original cost | = | 5,00,000 |
| 31.03.2011 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2011 | Book Value | = | 4,25,000 |
| 31.03.2012 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2012 | Book Value | = | 3,50,000 |
| 31.03.2013 | Less: Depreciation @ 15% | = | 75,000 |
| 01.04.2013 | Book Value | = | 2,75,000 |
Selling price – Book value = Profit
= 3,85,000 – 2,75,000 = 1,10,000
Profit on sale of Machinery is = ₹ 1,10,000.
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संबंधित प्रश्न
Answer in One Sentence only:
Which account is credited when depreciation is charged?
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount that a fixed asset is expected to realise on its disposal is known as ______
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
From the following particulars, give journal entries for 2 years and prepare machinery account under straight-line method of providing depreciation:
Machinery was purchased on 1.1.2016
Price of the machine ₹ 36,000
Freight charges ₹ 2,500
Installation charges ₹ 1,500
Life of the machine 5 years
Furniture costing ₹ 5,000 was purchased on 1.1.2016, the installation charges being ₹ 1,000. The furniture is to be depreciated @ 10% p.a. on the diminishing balance method. Pass journal entries for the first two years.
On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.
If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.
A factory’s machine remains idle for several months due to maintenance breakdowns. Which method ensures that depreciation is not overcharged during these idle periods?
