Question

Kapil Ltd. purchased a machinery on July 01, 2011 for ₹ 3,50,000. It purchased two additional machines, on April 01, 2012 costing ₹ 1,50,000 and on October 01, 2012 costing ₹ 1,00,000. Depreciation is provided @10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold for ₹ 1,00,000. Prepare machinery account for 4 years on the basis of calendar year.

Answer 1

Dr.	Books of Kapil Ltd Machinery Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2011				2011
Jul.01	Bank (i)		3,50,000	Dec.31	Depreciation (6 months)		17,500
					Balance c/d		3,32,500
			3,50,000				3,50,000
2012				2012
Jan.01	Balance c/d		3,32,500	Dec.31	Depreciation (i) 35,000 (ii) 1,250 (9 months) (iii) 2,500 (3 months)		48,750
Apr.01	Bank (ii)		1,50,000
Oct.01	Bank (iii)		1,00,000	Dec.31	Balance c/d (i) 2,97,500 (ii) 1,38,750 (iii) 97,500		5,33,750
			5,82,500				5,82,500
2013				2013
Jan.01	(i) 2,97,500,			Jan.01	Bank (i)		1,00,000
	(ii) 1,38,750,			Jan.01	Profit and Loss (Loss)		1,97,500
	(iii) 97,500		5,33,750	Dec.31	Depreciation (ii) 15,000 (iii) 10,000		25,000
				Dec.31	Balance c/d (ii) 1,23,750 (iii) 87,500		2,11,250
			5,33,750				5,33,750
2014				2014
Jan.01	Balance c/d (ii) 1,23,750 (iii) 87,500		2,11,250	Dec.31	Depreciation (ii) 15,000 (iii) 10,000		25,000
				Dec.31	Balance c/d (ii) 1,08,750 (iii) 77,500		1,86,250
			2,11,250				2,11,250
2015
Jan.01	Balance b/d		1,86,250