Question

A Firm purchased on 1 July 2014 a machinery Costing 48000 on 1 st Jan 2015 A machinery was purchased for rs. 20000 on 1 st Jan 2017 it was sold for 10000 the machinery which was purchased on 1 st July 2014 it was decided to charge depreciation@10% by diminishing balance method prepare machinery account from 2014 to 2017 ​

Answer 1

Explanation:

Date Particular Amt. Date Particular Amt.

2014

July 1 To bank a/c 48000 Dec.31 by dep.a/c 2400

(6 months)

Dec.31 by bal.c/d 45600

48000 48000

2015

Jan.1 To bal.bld 45600 Dec.31 By dep.a/c

(i)4560 6560

Jan.1 To bank a/c 20000 (ii)2000

Dec.31 By bal.c/d

(i) 41040

(ii) 18000 59040

65600 65600

2016

Jan.1 To bal b/d 59040 Dec.31 By dep.a/c

(i)41040 (i)4104 5904

(ii)18000 (ii)1800

By bal.c/d

(i) 36936 53136

(ii)16200

59040 59040

2017

Jan.1 To bal. b/d Dec.31 By dep. a/c 1620

(i)36936 53136 (ii) 1620

(ii)16200 By bank a/c 10000

By P&L a/c 26936

By bal.c/d 14580

53136 53136