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प्रश्न
Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.
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उत्तर
| In the books of Vishal Company, Dhule |
|||||||
| Dr. | Printing Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt (₹) | Date | Particulars | J.F. | Credit (₹) |
| 2016 | 2017 | ||||||
| Apr.1 | To Cash/Bank A/c | 60,000 | Mar.31 | By Depreciation A/c | 6,000 | ||
| Mar.31 | By Balance c/d | 54,000 | |||||
| 60,000 | 60,000 | ||||||
| 2017 | 2018 | ||||||
| Apr.1 | To Balance b/d | 54,000 | Mar.31 | By Depreciation A/c 5,400 + 1,500) | 6,900 | ||
| Oct.1 | To Cash/Bank A/c | 30,000 | Mar.31 | By Balance c/d | 77,100 | ||
| 84,000 | 84,000 | ||||||
| 2018 | 2019 | ||||||
| Apr.1 | To Balance b/d | 77,100 | Jan.1 | By Cash/Bank A/c | 18,000 | ||
| July. 1 | To Cash/Bank A/c | 20,000 | Jan.1 | By Depreciation A/c | 1,215 | ||
| 2019 | Mar.31 | By Depreciation A/c | 7,590 | ||||
| Jan.1 | To Profit and Loss A/c | 3,015 | Mar.31 | By Balance c/d | 73,310 | ||
| (Profit on sale) | |||||||
| 1,00,115 | 1,00,115 | ||||||
| 2019 | |||||||
| Apr.1 | To Balance b/d | 73,310 | |||||
| Journal of Vishal Company | ||||
| Date | Particulars | L.F. | Debit (₹) | Credit ₹ |
| 2018 July 1 | Machinery A/c ...Dr. | 20,000 | ||
| To Cash/Bank A/c | 20,000 | |||
| (Being purchase of machinery) | ||||
| 2019 Jan. 1 | To Cash/Bank A/c ...Dr. | 18,000 | ||
| Machinery A/c | 18,000 | |||
| (Being Sale machinery) | ||||
| Jan. 1 | Depreciation A/c ...Dr. | 1,215 | ||
| To Machinery A/c | 1,215 | |||
| (Being depreciation charged on machinery sold) | ||||
| Jan. 1 | Machinery A/c ...Dr. | 3,015 | ||
| To Profit and Loss A/c | 3,015 | |||
| (Being profit on sale on machinery) | ||||
| Mar. 31 | Depreciation A/c ...Dr. | 7,590 | ||
| To Machinery A/c | 7,590 | |||
| (Being in Depreciation charged at the end of the year) | ||||
| Mar. 31 | Profit and Loss A/c ...Dr. | 8,805 | ||
| To Depreciation A/c | 8,805 | |||
| (Being balance in Depreciation A/c transferred to P& L A/c) | ||||
| Total (₹) | 58,625 | 58,625 | ||
Working Notes:
1. Calculation of Profit or Loss on sale as Machine:
Original cost on 01.04.2016 = ₹ 20,000
Less: Dep. for 2016-17 (12 months) = ₹ 2,000
W.D.V. on 01.04.2017 = ₹ 18,000
Less : Dep. for 2016-17 (12 months) = ₹ 1,800
W.D.V. on 01.04.2018 = ₹ 16,200
Less : Dep. for 2018-19 (9 months) = ₹ 1,215
W.D.V. on date of sale = ₹ 14,985
Less : Selling Price = ₹ 18,000
∴ Profit on sale & machine = ₹ 3,015
2. Depreciation for 2018-19
(a) Opening balance on 01.04.2018 = ₹ 77,100
Less : W.D.V. of Machine sold on 01.04.2018 = ₹ 16,200
10% depreciation on 60,900 = ₹ 6,090
(b) Purchase of Machine on 01.07.2018 20,000 – 10% – 9 months = ₹ 6,090 + ₹ 1,500 = ₹ 7,590
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संबंधित प्रश्न
Answer in One Sentence only:
What is Fixed Instalment Method?
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the total depreciation is equally spread over the life of the asset.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount of depreciation reduces year after year under ______
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.
Do you agree or disagree with the following statement:
The rate of depreciation depends upon the life of fixed asset.
Do you agree or disagree with the following statement:
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
Complete the following sentence:
Depreciation is charged on ______ asset.
Complete the following sentence:
In Fixed Instalment System the amount of depreciation is ______ every year.
If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ______.
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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 charge for 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.
The Sum-of-the-Years’-Digits Method results in:
The Double Declining Balance Method applies depreciation:
