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प्रश्न
Ragul purchased machinery on April 1, 2014 for ₹ 2,00,000. On 1st October 2015, a new machine costing ₹ 1,20,000 was purchased. On 30th September 2016, the machinery purchased on April 1, 2014 was sold for ₹ 1,20,000. Books of accounts are closed on 31st March and depreciation is to be provided at 10% p.a. on straight line method. Prepare machinery account and depreciation account for the years 2014-15 to 2016-17.
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उत्तर
Machinery Account
| Dr. | Cr. | ||||||
| Date | Particulars | J.F. | Amount ₹ | Date | Particulars | J.F. | Amount ₹ |
| 01.04.2014 | To Bank A/c | 2,00,000 | 31.03.2015 | By Depreciation A/c | 20,000 | ||
| 31.03.2008 | By Balance c/d | 1,80,000 | |||||
| 2,00,000 | 2,00,000 | ||||||
| 01.04.2015 | To Balance b/d | 1,80,000 | 31.03.2016 | By Depreciation A/c | 26,000 | ||
| 01.10.2015 | To Bank A/c | 1,20,000 | 31.03.2016 | By Balance c/d | 2,74,000 | ||
| 3,00,000 | 3,00,000 | ||||||
| 01.04.2016 | To balance b/d | 2,74,000 | 30.09.2016 | By Depreciation A/c | 10,000 | ||
| 30.09.2016 | By Bank A/c | 1,20,000 | |||||
| 30.09.2016 | By Profit or Loss A/c | 30,000 | |||||
| 03.03.2017 | By Depreciation A/c | 12,000 | |||||
| 03.03.2017 | By balance c/d | 1,02,000 | |||||
| 2,74,000 | 2,74,000 | ||||||
| 01.04.2017 | To balance b/d | 1,02,000 |
Depreciation Account
| Dr. | Cr. | ||||||
| Date | Particulars | J.F. | Amount ₹ | Date | Particulars | J.F. | Amount ₹ |
| 31.03.2015 | To Machinery A/c | 20,000 | 31.03.2015 | By Profit/Loss A/c | 20,000 | ||
| 20,000 | 20,000 | ||||||
| 31.03.2016 | To Machinery A/c | 26,000 | 31.03.2016 | By Profit/Loss A/c | 26,000 | ||
| 26,000 | 26,000 | ||||||
| 30.09.2016 | To Machinery A/c | 10,000 | 30.09.2016 | By Profit/Loss A/c | 10,000 | ||
| 31.03.2017 | To Machinery A/c | 12,000 | 31.03.2017 | By Profit/Loss A/c | 12,000 | ||
| 22,000 | 22,000 | ||||||
Notes-
| Date | Particulars | 1st Machinery ₹ | 2nd Machinery ₹ |
| 1.4.2014 | Cost Price 1 | 2,00,000 | |
| 31.3.2015 | (-) Depreciation 10% | 20,000 | |
| 1,80,000 | |||
| 1.10.2015 | Cost price 2 | 1,20,000 | |
| 31.3.2016 | (-) Depreciation | 20,000 | 6,000 |
| 1,60,000 | 1,14,000 | ||
| 30.10.2016 | (-) Depreciation 1 | 10,000 | |
| Book Value | 1,50,000 | ||
| 30.10.2016 | (-) Sale price | 1,20,000 | |
| Loss | 30,000 | ||
| 31.3.2017 | (-) Depreciation 2 | 12,000 | |
| Balance in Machinery A/c | 1,02,000 |
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संबंधित प्रश्न
State whether the following statement is True or False with reasons:
Depreciation is charged on fixed assets.
Complete the following sentence:
In Fixed Instalment System the amount of depreciation is ______ every year.
Depreciation is to be calculated from the date when ______.
A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year 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
An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.
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.
On 1st January 2017 ‘Sai Industries, Nagpur’ purchased a Machine costing ₹ 1,65,000 and spent ₹ 15,000 for its installation charges. The estimated life of the Machine is to be 10 years and the scrap value at the end of its life would be ₹ 30,000. On 1st October 2018, the entire Machine was sold for ₹ 1,50,000.
Show Machinery Account, Depreciation Account, for the years 2016-17, 2017-18, and 2018-19 assuming that the accounts are closed on 31st March every year.
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.
Which depreciation method helps a firm accumulate funds for replacing an asset after its useful life?
