Question

4. Machinery was purchased by XYZ Industries for Rs. 350000 on 1st July, 2011. The machinery is depreciated @ 15% p.a. on Straight Line Method. The machinery was sold on 1st October, 2013 for Rs. 170000. You are required to prepare Machinery Account, if the books are closed on 31 st December every year.​

Answer 1

Answer:

              Machinery a/c

1/7/2011; To bank a/c 350000          31/12/2011:By dep a/c 26250

                                                            31/12/2011: by bal c/d 323750

for the year 2012

1/1/2012: To bal b/d 323750               31/12/2012: By dep a/c: 52500

                                                              31/12/2012: by balc/d : 271250

For the year 2013

1/1/2013: To bal b/d : 271250                  30/9/2013: by dep a/c:39375 (for 9mnths)

                                                                30/9/2013: by bank a/c 170000

                                                                 30/9/2013; by p&l loss a/c: 61875            

hope you understand this :-)