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प्रश्न
Sameer & Company, Mumbai purchased a Machine worth ₹ 2,00,000 on 1st April 2016. On 1st July 2017, the company purchased an additional Machine for ₹ 40,000.
On 31st March 2019, the company sold the Machine purchased on 1st July 2017 for ₹ 35,000. The company writes off depreciation at the rate of 10% on the original cost and the books of accounts are closed every year on 31st March.
Show the Machinery Account and Depreciation Account for the first three years ending 31st March 2016-17, 2017-18 and 2018-19
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उत्तर
In the books of Sameer & Company, Mumbai
| Dr. | Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2016 | 2017 | ||||||
| Apr. 1 | To Cash/Bank A/c | 2,00,000 | Mar. 31 | By Depreciation A/c | 20,000 | ||
| Mar. 31 | By Balance c/d | 1,80,000 | |||||
| 2,00,000 | 2,00,000 | ||||||
| 2017 | 2018 | ||||||
| Apr. 1 | To Balance b/d | 1,80,000 | Mar. 31 | By Depreciation A/c (20,000 + 3,000) | 23,000 | ||
| Jul. 1 | To Cash/Bank A/c | 40,000 | By Balance c/d | 1,97,000 | |||
| 2,20,000 | 2,20,000 | ||||||
| 2018 | 2019 | ||||||
| Apr. 1 | To Balance b/d | 1,97,000 | Mar. 31 | By Cash/Bank A/c | 35,000 | ||
| 2019 | Mar. 31 | By Depreciation A/c (4,000 + 20,000) |
24,000 | ||||
| Mar. 31 | To Profit and Loss A/c (Profit on sale) | 2,000 | Mar. 31 | By Balance c/d | 1,40,000 | ||
| 1,99,000 | 1,99,000 | ||||||
| 2019 | |||||||
| Apr. 1 | To Balance b/d | 1,40,000 | |||||
| Dr. | Depreciation Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2017 | 2017 | ||||||
| Mar. 31 | To Machinery A/c | 20,000 | Mar. 31 | By Profit and Loss A/c | 20,000 | ||
| 20,000 | 20,000 | ||||||
| 2018 | 2018 | ||||||
| Mar. 31 | To Machinery A/c | 23,000 | Mar. 31 | By Profit and Loss A/c | 23,000 | ||
| 23,000 | 23,000 | ||||||
| 2019 | 2019 | ||||||
| Mar. 1 | To Machinery A/c | 24,000 | Mar. 31 | By Profit and Loss A/c | 24,000 | ||
| 24,000 | 24,000 | ||||||
Working note:
Calculation of Profit or Loss on sale of machine:
Original cost on 01.07.2017 = ₹ 40,000
Less: Depreciation for 2017-18 (9 months) = ₹ 3,000
W.D.V. on 01-04-2018 = ₹ 37,000
Less: Depreciation for 2018-19 (12. months) = ₹ 4,000
W.D.V. on date of sale = ₹ 33,000
Less: Selling price = ₹ 35,000
∴ Profit on sale of machine = ₹ 2,000
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संबंधित प्रश्न
Answer in One Sentence only:
What is the formula to calculate depreciation by Straight Line Method?
Write the word/term/phrase which can substitute the following statement:
Expenses incurred for fixation of the new asset to bring it in working condition.
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 of depreciation remains constant every year under ______
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
Complete the following sentence:
Under ______ system, the amount of depreciation changes every year.
If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ______.
For which of the following assets, the depletion method is adopted for writing off cost of the asset?
Which method shall be efficient, if repairs and maintenance cost of an asset increases as it grows older.
List out the various methods of depreciation.
State the limitations of straight-line method of depreciation.
Distinguish between straight-line method and written down value method of providing depreciation.
Furniture was purchased for ₹ 1,00,000 on 1.7.2016. It is expected to last for 5 years. Estimated scrap at the end of five years is ₹ 10,000. Find out the rate of depreciation under the straight-line method.
An asset is purchased on 1.1.2016 for ₹ 50,000. Depreciation is to be provided annually according to the straight-line method. The useful life of the asset is 10 years and its residual value is ₹ 10,000. Accounts are closed on 31st December every year. You are required to find out the rate of depreciation and give journal entries for first two years.
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
An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.
If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.
Mr. ‘X’ purchased Furniture on 1st October 2015 at ₹ 2,80,000 and spent ₹ 20,000 on its installation. He provides depreciation at 6% under the straight-line method on 31st March 2016. Calculate the amount of depreciation.
Radhika-Masale’ Amravati purchased a Plant on 1st Jan. 2015 for ₹ 80,000. A new Plant was also purchased
for ₹ 60,000, installation expenses being ₹ 10,000 on 1st April 2016. On 1st Jan 2017, a new Plant was purchased for ₹ 20,000, by disposing of the 1st Plant at ₹ 60,000.
Prepare Plant Account and Depreciation Account for 31st March 2015, 31st March 2016, and 31st March 2017, assuming that the rate of depreciation was @ 10% on Diminishing Balance Method.
Solution:
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹ 75,000 on 1 Oct 2015 and spent ₹ 5,000 on its transport and installation. Another Machine for ₹ 45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on Written Down Value Method, on 31st march every year.
Prepare Printing Machine Account for the first four years.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
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Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
In the Written Down Value Method, depreciation is calculated on the:
Which depreciation method helps a firm accumulate funds for replacing an asset after its useful life?
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The Double Declining Balance Method applies depreciation:
