Question

26. A Ltd. purchased the following machines:
On 1st April, 2016 Rs 40,000
On 1st October, 2016 Rs 20,000
On 1st January, 2017 Rs 10,000
Depreciation was provided @ 10% p.a. under Written Down Value Method (Diminishing Balance Method.)
The machine purchased on 1st October, 2016 was sold on 30th June, 2017 at 15,000.
Show necessary ledger accounts in the books of A Ltd. if accounts are closed on 31st March every year.​

Answer 1

Answer:

Dr.

Cr.

Date Particulars Amount (₹) Date Particulars Amount (₹)

2015 2016

Apr. 01 Bank A/c (1,90,000 + 10,000) 2,00,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,75,000

2,00,000 2,00,000

2016 2017

Apr. 01 Balance b/d 1,75,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,50,000

1,75,000 1,75,000

2017 2018

Apr. 01 Balance b/d 1,50,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,25,000

1,50,000 1,50,000

2018 2019

Apr. 01 Balance b/d 1,25,000 Mar. 31 Depreciation A/c 25,000

Mar. 31 Balance c/d 1,00,000

1,25,000 1,25,000

Depreciation Account