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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, - Accountancy

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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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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 10. | पृष्ठ २२६

संबंधित प्रश्‍न

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

The amount spent on installation of new machinery is a ______ expenditure.


Complete the following sentence:

Depreciation is charged on ______ asset.


Under straight-line method, the amount of depreciation is ______.


If the total charge of depreciation and maintenance cost are considered, the method that provides a uniform charge is ______.


What is the annuity 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.


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.


Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.


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.


On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charges of the Motor Car was ₹ 5,000.

Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.


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