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प्रश्न
Ragul purchased machinery on April 1, 2014 for ₹ 2,00,000. On 1st October 2015, a new machine costing ₹ 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for ₹ 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17.
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उत्तर
Machinery Account
| Dr. | Cr. | ||||||
| Date | Particulars | J.F. | Amount ₹ | Date | Particulars | J.F. | Amount ₹ |
| 01.04.2014 | To Bank A/c | 2,00,000 | 31.03.2015 | By Depreciation A/c | 20,000 | ||
| 31.03.2008 | By Balance c/d | 1,80,000 | |||||
| 2,00,000 | 2,00,000 | ||||||
| 01.04.2015 | To Balance b/d | 1,80,000 | 31.03.2016 | By Depreciation A/c | 26,000 | ||
| 01.10.2015 | To Bank A/c | 1,20,000 | 31.03.2016 | By Balance c/d | 2,74,000 | ||
| 3,00,000 | 3,00,000 | ||||||
| 01.04.2016 | To balance b/d | 2,74,000 | 30.09.2016 | By Depreciation A/c | 10,000 | ||
| 30.09.2016 | By Bank A/c | 1,20,000 | |||||
| 30.09.2016 | By Profit or Loss A/c | 30,000 | |||||
| 03.03.2017 | By Depreciation A/c | 12,000 | |||||
| 03.03.2017 | By balance c/d | 1,02,000 | |||||
| 2,74,000 | 2,74,000 | ||||||
| 01.04.2017 | To balance b/d | 1,02,000 |
Depreciation Account
| Dr. | Cr. | ||||||
| Date | Particulars | J.F. | Amount ₹ | Date | Particulars | J.F. | Amount ₹ |
| 31.03.2015 | To Machinery A/c | 20,000 | 31.03.2015 | By Profit/Loss A/c | 20,000 | ||
| 20,000 | 20,000 | ||||||
| 31.03.2016 | To Machinery A/c | 26,000 | 31.03.2016 | By Profit/Loss A/c | 26,000 | ||
| 26,000 | 26,000 | ||||||
| 30.09.2016 | To Machinery A/c | 10,000 | 30.09.2016 | By Profit/Loss A/c | 10,000 | ||
| 31.03.2017 | To Machinery A/c | 12,000 | 31.03.2017 | By Profit/Loss A/c | 12,000 | ||
| 22,000 | 22,000 | ||||||
Notes-
| Date | Particulars | 1st Machinery ₹ | 2nd Machinery ₹ |
| 1.4.2014 | Cost Price 1 | 2,00,000 | |
| 31.3.2015 | (-) Depreciation 10% | 20,000 | |
| 1,80,000 | |||
| 1.10.2015 | Cost price 2 | 1,20,000 | |
| 31.3.2016 | (-) Depreciation | 20,000 | 6,000 |
| 1,60,000 | 1,14,000 | ||
| 30.10.2016 | (-) Depreciation 1 | 10,000 | |
| Book Value | 1,50,000 | ||
| 30.10.2016 | (-) Sale price | 1,20,000 | |
| Loss | 30,000 | ||
| 31.3.2017 | (-) Depreciation 2 | 12,000 | |
| Balance in Machinery A/c | 1,02,000 |
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संबंधित प्रश्न
Write the word/term/phrase which can substitute the following statement:
Method of depreciation that cannot reach to zero value.
State whether the following statement is True or False with reasons:
Depreciation is charged on fixed assets.
State the advantages of written down value method of depreciation.
Distinguish between straight-line method and written down value method of providing depreciation.
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.
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.
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.
Correct the following statement and rewrite the statement.
Underwritten down value method depreciation is calculated on the original cost of an asset.
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
The Double Declining Balance Method applies depreciation:
