Question

A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 01, 2017 is ₹ 40,00,000. On October 01, 2017 it sold one of its cranes whose value was ₹ 5,00,000 on April 01, 2017 at a 10% profit. On the same day it purchased 2 cranes for ₹ 4,50,000 each. Prepare cranes account. It closes the books on December 31, and provides for depreciation on 10% written down value.

Answer 1

Dr.	Cranes Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2017				2017
Apr.01	Machinery (35,00,000 + 5,00,000)		40,00,000	Oct.01	Depreciation		25,000
Oct.01	Profit and Loss (Profit)		47,500	Oct.01	Bank		5,22,500
Oct.01	Bank		9,00,000	Dec.31	Depreciation 35,00,000 × 10/100 × 9/12 = 2,62,500
					9,00,000 × 10/100 × 6/12  = 22,500		2,85,000
				Dec.3	Balance c/d 32,37,500 + 8,77,500		41,15,000
			49,47,500				49,47,500