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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

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

The method of depreciation in which the rate of depreciation is fixed but the amount of depreciation reduces every year.


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

Depreciation is charged only on ______ assets.


Complete the following sentence:

In Fixed Instalment System the amount of depreciation is ______ every year.


Complete the following sentence:

Depreciation Account is a ______ account.


Depreciation is to be calculated from the date when ______.


What is the annuity method?


A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.


Machinery was purchased on 1st January 2015 for ₹ 4,00,000. ₹ 15,000 was spent on its erection and ₹ 10,000 on its freight charges. Depreciation is charged at 10% per annum on the straight-line method. The books are closed on 31st March each year. Calculate the amount of depreciation on machinery for the first two years.


Mahesh Traders Solapur purchased Furniture on 1st April 2014 for ₹ 20,000. In the same year on 1st, Oct. additional Furniture was purchased for ₹ 10,000.
On 1st Oct. 2015, the Furniture purchased on 1st April 2014 was sold for ₹ 15,000 and on the same day, a new Furniture was purchased for ₹ 20,000.
The firm charged depreciation at 10% p.a. on the Reducing Balance Method.
Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016, and 2017.


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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