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प्रश्न
Samarth Manufacturing Co. Ltd, Aurangabad, purchased a New Machinery for ₹ 45,000 on 1st Jan 2015 and immediately spent ₹ 5,000 on its fixation and erection. In the same year, 1st July additional Machinery costing ₹ 25,000 was purchased. On 1st July 2016, the Machinery purchased on 1st Jan 2015 became obsolete and was sold for ₹ 40,000.
Depreciation was provided annually on 31st March at the rate of 10% per annum on the Fixed Instalment Method.
You are required to prepare Machinery Account for the year 2014-15, 2015-16, 2016-17.
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उत्तर
| In the books of Samarth Manufacturing Co. Ltd, Aurangabad | |||||||
| Dr. | Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2015 | 2015 | ||||||
| Jan. 1 | To Cash/Bank A/c | 50,000 | Mar. 31 | By Depreciation A/c | 1,250 | ||
| (45,000 + 5,000) | Mar. 31 | By Balance c/d | 48,750 | ||||
| 50,000 | 50,000 | ||||||
| 2015 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 48,750 | Mar. 31 | By Depreciation A/c (5,000 + 1,875) | 6,875 | ||
| July 1 | To Cash/Bank A/c | 25,000 | Mar. 31 | By Balance c/d | 66,875 | ||
| 73,750 | 73,750 | ||||||
| 2016 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 66,875 | July 1 | By Cash/Bank A/c | 40,000 | ||
| July 1 | By Depreciation A/c | 1,250 | |||||
| July 1 | By P/L A/c (loss on sale) | 2,500 | |||||
| 2017 | |||||||
| Mar. 31 | By Depreciation A/c | 2,500 | |||||
| Mar. 31 | By Balance c/d | 20,625 | |||||
| 66,875 | 66,875 | ||||||
| 2017 | |||||||
| Apr. 1 | To Balance b/d | 20,625 | |||||
Working Note:
Calculation of Profit or Loss on sale of machine:
Original cost on 01.01.2015 = ₹ 50,000
Less: Depreciation for 2014-15 (3 months) = ₹ 1,250
W.D.V. on 01-04-2015 = ₹ 48,750
Less: Depreciation for 2015-16 (12 months) = ₹ 5,000
W.D.V. on 01-04-2016 = ₹ 43,750
Less: Depreciation for 2016-17 (3 months) = ₹ 1,250
W.D.V. on date of sale = ₹ 42,500
Less: Selling price = ₹ 40,000
∴ Loss on sale of machine = ₹ 2,500
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
What is a ‘Scrap Value’ of an asset?
Answer in One Sentence only:
Why depreciation is charged even in the year of loss?
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
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.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
State whether the following statement is True or False with reasons:
Depreciation is charged on Current Assets only.
Complete the following sentence:
Depreciation is charged on ______ asset.
Complete the following sentence:
Under ______ system, the amount of depreciation changes every year.
Complete the following sentence:
Depreciation = `"Cost of asset - _____________"/"Estimated Working Life of the Asset"`
Complete the following sentence:
In Fixed Instalment System the amount of depreciation is ______ every year.
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
For which of the following assets, the depletion method is adopted for writing off cost of the asset?
Depreciation is to be calculated from the date when ______.
If the rate of depreciation is the same, then the amount of depreciation under straight-line method vis-à-vis written down value method will be ______.
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
Distinguish between straight-line method and written down value method of providing depreciation.
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