Advertisements
Advertisements
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.
Advertisements
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 | ||||||
APPEARS IN
संबंधित प्रश्न
Write the word/term/phrase which can substitute the following statement:
Excess of Selling price of fixed asset over its Written Down Value.
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:
The Profit or Loss on sale of fixed asset is ascertained only after charging depreciation.
Do you agree or disagree with the following statement:
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
A depreciable asset may suffer obsolescence due to ______.
An asset is purchased on 1.1.2016 for ₹ 50,000. Depreciation is to be provided annually according to the straight-line method. The useful life of the asset is 10 years and its residual value is ₹ 10,000. Accounts are closed on 31st December every year. You are required to find out the rate of depreciation and give journal entries for first two years.
Correct the following statement and rewrite the statement.
Underwritten down value method depreciation is calculated on the original cost of an asset.
On 1st July 2016 M/s. Ramai & Co. .sold Machinery for ₹ 7,000 the original cost of ₹ 10,000 which was purchased on 18th April 2015. Find out the profit or loss on sale of Machinery by charging depreciation at 10% p.a. on original cost on 31st March every year.
On 1st April 2015, Suman Traders purchased Machinery for ₹ 30,000. On 1st Oct. 2015, they purchased further Machinery costing ₹ 20,000.
On 1st Oct. 2016, they sold the Machine purchased on 1st April 2015 for ₹ 18,000 and brought another Machine for ₹ 15,000 on the same date.
Depreciation is provided on Machinery @ 20% p.a. on the Diminishing Balance Method and the financial year closes on 31st March every year.
Prepare the Machinery Account and Depreciation Account for the year 2015-16, 2016-17, and 2017-18.
The Double Declining Balance Method applies depreciation:
