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प्रश्न
Samarth Manufacturing Co. Ltd, Aurangabad, purchased a New Machinery for ₹ 45,000 on 1st Jan 2015 and immediately spent ₹ 5,000 on its fixation and erection. In the same year, 1st July additional Machinery costing ₹ 25,000 was purchased. On 1st July 2016, the Machinery purchased on 1st Jan 2015 became obsolete and was sold for ₹ 40,000.
Depreciation was provided annually on 31st March at the rate of 10% per annum on the Fixed Instalment Method.
You are required to prepare Machinery Account for the year 2014-15, 2015-16, 2016-17.
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उत्तर
| In the books of Samarth Manufacturing Co. Ltd, Aurangabad | |||||||
| Dr. | Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2015 | 2015 | ||||||
| Jan. 1 | To Cash/Bank A/c | 50,000 | Mar. 31 | By Depreciation A/c | 1,250 | ||
| (45,000 + 5,000) | Mar. 31 | By Balance c/d | 48,750 | ||||
| 50,000 | 50,000 | ||||||
| 2015 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 48,750 | Mar. 31 | By Depreciation A/c (5,000 + 1,875) | 6,875 | ||
| July 1 | To Cash/Bank A/c | 25,000 | Mar. 31 | By Balance c/d | 66,875 | ||
| 73,750 | 73,750 | ||||||
| 2016 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 66,875 | July 1 | By Cash/Bank A/c | 40,000 | ||
| July 1 | By Depreciation A/c | 1,250 | |||||
| July 1 | By P/L A/c (loss on sale) | 2,500 | |||||
| 2017 | |||||||
| Mar. 31 | By Depreciation A/c | 2,500 | |||||
| Mar. 31 | By Balance c/d | 20,625 | |||||
| 66,875 | 66,875 | ||||||
| 2017 | |||||||
| Apr. 1 | To Balance b/d | 20,625 | |||||
Working Note:
Calculation of Profit or Loss on sale of machine:
Original cost on 01.01.2015 = ₹ 50,000
Less: Depreciation for 2014-15 (3 months) = ₹ 1,250
W.D.V. on 01-04-2015 = ₹ 48,750
Less: Depreciation for 2015-16 (12 months) = ₹ 5,000
W.D.V. on 01-04-2016 = ₹ 43,750
Less: Depreciation for 2016-17 (3 months) = ₹ 1,250
W.D.V. on date of sale = ₹ 42,500
Less: Selling price = ₹ 40,000
∴ Loss on sale of machine = ₹ 2,500
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संबंधित प्रश्न
Answer in One Sentence only:
What is Fixed Instalment Method?
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount of depreciation remains constant every year under ______
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
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.
State whether the following statement is True or False with reasons:
Wages paid for installation of Machinery are debited to Wages A/c.
State whether the following statement is True or False with reasons:
Depreciation is charged on Current Assets only.
Do you agree or disagree with the following statement:
The rate of depreciation depends upon the life of fixed asset.
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 ______.
For which of the following assets, the depletion method is adopted for writing off cost of the asset?
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
What is the annuity method?
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