Question

a company purchased a machinery on 1st January 2012 for 582000 and spent 18000 on its installation.on 1 July 2012 additional machinary costing 200000 purchased .on 1 july 2014 the machinary purchased on 1 January 2012 was auctioned for 286000 and a fresh machinery was purchased for 400000 on the same date . depreciation was provided annually as per the calendar year @ 10% written down value method . prepare machinery account from 2012 to 2014​

Answer 1

Answer:

Balance in 'Provision for depreciation Account" as on 31.03.2015:-

= depreciation on unsold machinery + Depreciation on new machinery

= RS- 3,36,000 + RS-4,000

RS-3,40,000.

Working notes:-

1) Depreciation on existing machinery from 1.4.2012 to 31.03.2015 (3 years):-

= (12,00,000 - 80,000) 11,20,000 x 10/100 x 3 years

= RS-3,36,000

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)

= 80,000 x 10/100 x 6/12

= RS-4,000.