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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.

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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 type of asset on which depreciation is charged.


State whether the following statement is True or False with reasons:

Depreciation is charged on fixed assets.


State whether the following statement is True or False with reasons:

Wages paid for installation of Machinery are debited to Wages A/c.


Complete the following sentence:

______ is the value which an asset realises at the end of its useful life.


For which of the following assets, the depletion method is adopted for writing off cost of the asset?


On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.


Raj & Co purchased a machine on 1st January 2014 for ₹ 90,000. On 1st July 2014, they purchased another machine for ₹ 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for ₹ 40,000. It was decided that the machine be depreciated at 10% per annum on the diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.


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


M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 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 the Written Down Value Method, on 31st March every year. 

Prepare Printing Machine Account for the first four years.


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