Question

M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2011 for ₹ 1,00,000. On July 01, 2012 another machine costing ₹ 2,50,000 was purchased. The machine purchased on April 01, 2011 was sold for ₹ 25,000 on October 01, 2015. The company charges depreciation @15% p.a. on straight line method. Prepare machinery account and machinery disposal account for the year ended March 31, 2016.

Answer 1

Dr.	Books of M/s. Lokesh Fabrics Machinery Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2011				2012
Apr.01	Bank (i)		1,00,000	Mar.31	Depreciation		15,000
				Mar.31	Balance c/d		85,000
			1,00,000				1,00,000
2012				2013
Apr.01	Balance b/d		85,000	Mar.31	Depreciation (i) 15,000 + 28,125		43,125
July.01	Bank (ii)		2,50,000	Mar.31	Balance c/d (i) 70,000 (ii) 2,21,875		2,91,875
			3,35,000				3,35,000
2013				2014
Apr.01	Balance b/d (i) 70,000 (ii) 2,21,875		2,91,875	Mar.31	Depreciation (i) 15,000 (ii) 37,500		52,500
				Mar.31	Balance c/d (i) 55,000 (ii) 1,84,375		2,39,375
			2,91,875				2,91,875
2014				2015
Apr.01	Balance b/d (i) 5,500 (ii) 1,84,375		2,39,375	Mar.31	Depreciation (i) 15,000 (ii) 37,500		52,500
				Mar.31	Balance c/d (i) 40,000 (ii) 1,46,875		1,86,875
			2,39,375				2,39,375
2015				2015
Apr.01	Balance b/d (i) 40,000 (ii) 1,46,875		1,86,875	Oct.01	Depreciation		7,500
				Oct.01	Machinery Disposal		32,500
				2016
				Mar.31	Depreciation (ii)		37,500
				Mar.31	Balance c/d		1,09,375
			1,86,875				1,86,875

 

Dr.	Machinery Disposal Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2015				2015
Oct.01	Machinery		32,500	Oct.01	Bank Profit and		25,000
				Oct.01	Loss		7,500
			32,500				32,500