Question

32. Birla cotton mills purchased a machinery on 1st August, 2015 for 390,000. On 1st October, 2016 it
purchased another machine for 40,000.
On 30th June, 2017 it sold off the first machine purchased in 2015 at a profit of 32,500 and on the
same date purchased a new machinery for 1,00,000. Depreciation is provided at 20% p.a. on the
original cost each year. Accounts are closed each year on 31st March.
Show the machinery account for three years.
8​

Answer 1

Explanation:

1st machinery 1st dep 52000 / bal C/d 338000.

1stApr 2016 bal b/d 338000/1st oct 2nd machinery 40000/1st dep 78000/2nd machinery dep 4000/ 31th march 2017 bal C/d 1st 260000/2nd 36000/ total 296000.

1st Apr 17 bal B/d 296000 1st 260000/2nd 36000

/ by bank 247000/dep 13000/by loss on sale 214000/30th June 3rd machinery 100000/ 2nd dep 8000/3rd dep 15000/bal C/d 2nd 28000/3rd 85000/ total 113000.