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:

Dr Machinery Account Cr

Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)

2001

Jul 1 To Bank A/c 3,50,000 2001 Dec 31 To Depreciation A/c (@10% for 6 months) 17,500

Dec 31 By Balance c/d 3,32,500

3,50,000 3,50,000

2002 Jan 1

To Balance b/d (M1) 3,32,500 2002 Dec 31 By Depreciation

A/c

M1 = 35,000

M2 = 11,250

M3 = (3 months) 2,500

48,750

Apr 1

Oct 1

To Bank A/c (M2)

To Bank A/c (M3)

1,50,000

1,00,000

Dec 31 By Balance c/d

M1 = 2,97,500

M2= 1,38,750

M3 = 97,500

5,33,750

5,82,500 5,82,500

2003

Jan 1

To Balance b/d

M1 = 2,97,500

M2 = 1,38,750

M3 = 97,500

5,33,750 2003 Jan 1 By Bank A/c (M1) 1,00,000

Jan 1 By Profit & Loss A/c (Loss) 1,97,500

By Depreciation A/c

M2 = 15,000

M3 = 10,000

25,000

Dec 31 By Balance c/d

M2 = 1,23,750

M3 = 87,500

2,11,250