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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. - Accountancy

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प्रश्न

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.

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उत्तर

Date Particulars
01.04.2015 Machinery purchased 50,000
31.12.2015 Less: Depreciation @ 30% 11,250
01.01.2016 Book value 38,750
31.12.2016 Less: Depreciation @ 30% 11,625
01.01.2017 Book value 27.125
31.12.2017 Less: Depreciation @ 30% 8,138
01.01.2018 Book value 18,987

Machinery A/c

Dr.   Cr.
Date Particulars L.F. Date Particulars L.F.
01.04.15 To Bank A/c   50,000 31.12.15 By Depreciation A/c   11,250
        31.12.15 By Balance c/d   38,750
      50,000       50,000
01.01.16 To Balance b/d   38,750 31.12.16 By Depreciation A/c   11,625
        31.12.16 By Balance c/d   27,125
      38,750       38,750
01.01.17 To Balance b/d   27,125 31.12.17 By Depreciation A/c   8,138
        31.12.17 By Balance c/d   18,987
      27,125       27,125
01.01.18 To Balance b/d   18,987        

Depreciation A/c

Dr.   Cr.
Date Particulars L.F. Date Particulars L.F.
31.12.15 To Machinery A/c   11,250 31.12.15 By P & L A/c   11,250
      11,250       11,250
31.12.16 To Machinery A/c   11,625 31.12.16 By P & L A/c   11,625
      11,625       11,625
31.12.17 To Machinery A/c   8,138 31.12.17 By P & L A/c   8,138
      8,138       8,138
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पाठ 10: Depreciation Accounting - Exercises [पृष्ठ २२६]

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सामाचीर कलवी Accountancy [English] Class 11 TN Board
पाठ 10 Depreciation Accounting
Exercises | Q IV 14. | पृष्ठ २२६

संबंधित प्रश्‍न

Answer in One Sentence only:

What is a ‘Scrap Value’ of an asset?


Write the word/term/phrase which can substitute the following statement:

The period for which the asset remains in working condition.


Select the most appropriate answer from the alternatives given below and rewrite the sentence:

The amount that a fixed asset is expected to realise on its disposal is known as ______


Complete the following sentence:

Depreciation is charged on ______ asset.


Complete the following sentence:

Under ______ system, the amount of depreciation changes every year.


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.


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


A machine costing ₹ 23,000 is estimated to have a life of 7 years and the scrap value is estimated at ₹ 2,000 at the end of its useful life. Find out the amount of depreciation p.a.


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.


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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