Question

M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹ 75,000 on 1st 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.

Answer 1

In the books of M/s Omkar Enterprise Jalgaon.
Dr.	Printing Machine Account						Cr.
Date	Particulars	J.F.	Amt (₹)	Date	Particulars	J.F.	Amt (₹)
2015				2016
Oct, 1	To Cash/Bank A/c		80,000	Mar, 31	By Depreciation A/c		8,000
				Mar, 31	By Balance c/d		72,000
			80,000				80,000
2016 Apr, 1	To Balance b/d		72,000	2017 Mar, 31	By Depreciation A/c (14,400 + 2,250)		16,650
2017 Jan, 1	To Cash/Bank A/c		45,000	Mar, 31	By Balance c/d		1,00,350
			1,17,000				1,17,000
2017 Apr, 1	To Balance b/d		1,00,350	2018 Mar, 31	By Depreciation A/c		20,070
				Mar, 31	By Balance c/d		80,280
			1,00,350				1,00,350
2018 Apr, 1	To Balance b/d		80,280	2019 Mar, 31	By Depreciation A/c		16,056
				Mar, 31	By Balance c/d		64,224
			80,280				80,280
2019 Apr.1	To Balance b/d		64,224

Working Note:

1)

I = `80,000xx20/100 = 16,000` p.a

`16,000xx6/12 = 8,000`

2) `72,000xx20/100 = 14,400`

3) `45,000xx20/100xx3/12 = 2,250`

4) `1,00,350xx20/100 = 20,070`

5) 1,00,350 − 20,070 = 80,280

6) `80,280xx20/100= 16,056`

7) 80,280 − 16,056 = 64,224