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Question
On 1st Jan 2015, Triveni Traders Raigad purchased a Plaint for ₹ 12,000, and installation charges being ₹ 3,000. On 1st July 2016 another Plant was purchased for ₹ 25,000, on 1st April 2017 another Plant was purchased for ₹ 27,000, wages paid for installation amounted to ₹ 2,000. Carriage paid for the Plant amounted to ₹ 1,000. Show Plant Account up to 31st March 2018 assuming that the rate of depreciation is @ 10% p.a. on Straight Line Method.
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Solution
In the books of Triveni Traders, Raigad
| Dr. | Plant Account | Cr. | |||||
| Date | Particulars | J. F. | Amt (₹) | Date | Particulars | J. F. | Amt (₹) |
| 2015 | 2015 | ||||||
| Jan. 1 | To Cash/Bank A/c (12,000 + 3,000) (Plant I) |
15,000 | Mar. 31 | By Depreciation A/c | 375 | ||
| Mar. 31 | By Balance c/d | 14,625 | |||||
| 15,000 | 15,000 | ||||||
| 2015 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 14,625 | Mar. 31 | By Depreciation A/c | 1,500 | ||
| Mar. 31 | By Balance c/d | 13,125 | |||||
| 14,625 | 14,625 | ||||||
| 2016 | 2017 | ||||||
| Apr. 1 | To Balance b/d | 13,125 | Mar. 31 | By Depreciation A/c (Plant I) | 1,500 | ||
| Jul. 1 | To Cash/Bank A/c (Plant II) | 25,000 | Mar. 31 | By Depreciation A/c (Plant II) | 1,875 | ||
| Mar. 31 | By Balance c/d | 34,750 | |||||
| 38,125 | 38,125 | ||||||
| 2017 | 2018 | ||||||
| Apr. 1 | To Balance b/d | 34,750 | Mar. 31 | By Depreciation A/c (Plant I) | 1,500 | ||
| Apr. 1 | To Cash/Bank A/c (27,000 + 2,000 + 1,000) (Plant III) |
30,000 | Mar. 31 | By Depreciation A/c (Plant II) | 2,500 | ||
| Mar. 31 | By Depreciation A/c (Plant III) | 3,000 | |||||
| Mar. 31 | By Balance c/d | 57,750 | |||||
| 64,750 | 64,750 | ||||||
| 2018 | |||||||
| Apr. 1 | To Balance b/d | 57,750 | |||||
Working Note:
| Plant I | Amount | Plant II | Amount | Plant III | Amount |
| 1st Jan 2015 to 31st Mar 2015 Book Value Less: Dep. `(15,000 xx 10/100 xx 3/12)` |
375 |
||||
|
1st April 2015 to 31st Mar 2016 Less: Dep. `(15,000 xx 10/100)` |
14,625
|
||||
|
1st April 2016 to 31st Mar 2017 Less: Dep. `(15,000 xx 10/100)` |
13,125
|
1st July 2016 Less: Dep. `(25,000 xx 10/100 xx 9/12)` |
25,000 1875 |
||
|
1st April 2017 to 31st Mar 2018 Less: Dep. `(15,000 xx 10/100)` |
11,625
|
1st April 2017 to 31st Mar 2018 Less: Dep. `(25,000 xx 10/100)` |
23,125 2,500 |
1st April 2017 to 31st Mar 2018 Less: Dep. `(30,000 xx 10/100)` |
30,000
|
| 1st April 2018 | 10,125 | 1st April 2018 | 20,625 | 1st April 2018 | 27,000 |
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