0.3 On 1st January, 2016, A Ltd. Purchased a machine for 32,40,000 and spent510,000 on its erection. On 1st July, 2016 an additional machinery costing 1,00,000was purchased. On 1st July, 2018 the machine purchased on 1st January, 2016 wassold for 1,43,000 and on the same date, a new machine was purchased at a cost of52,00,000.Show the Machinery Account for the first three calendar years after chargingdepreciation at 5% by the Straight Line Method.A Loon Sale of Machinery 75 750 Balance of Machinery Account
Answers
Dr Machinery A/c Cr
Date Particular Amt Date Particular Amt
2016 2016
1 Jan To Bank 37,50,000 31 Dec By Depreciation 1,90,000
1 July To Bank 1,00,000 31 Dec By Balance c/d 46,60,000
48,50,000 48,50,000
2017 2017
1 Jan To Balance b/d 46,60,000 31 Dec By Depreciation 1,92,500
31 Dec By Balance c/d 44,67,500
46,60,000 46,60,000
2018 2018
1 Jan To Balance b/d 44,67,500 1 July By Bank 1,43,000
1 Jan To Bank 52,00,000 1 July By Depreciation 81,000
1 July By Profit & Loss 26,92,000
31 Dec By Depreciation 2,60,250
31 Dec By Balance c/d 64,91,250
96,67,500
Working note: sale calculation
cost of machinery as on 1.1.2016 = 32,40,000
(-) Depreciation for 2016-17 = 1,62,000
W.D.V. as on 1.1.2017 = 30,78,000
(-) Depreciation for 2017-18 = 1,62,000
W.D.V. as on 1.1.2018 = 29,16,000
(-) Depreciation for 2018-19 = 81,000
W.D.V. as on 1.7.2018 = 28,35,000
(-) selling price = 1,43,000
Loss = 26,92,000