Question

A new machine was installed during the year costing Rs 15400 but it was not recorded in the books as bi payment was made for it ....
Plant and machinery account depreciated@100/3%.

Answer 1

Answer:

(a) Machinery a/c............. Dr ₹15,400

To Bank a/c. ₹15,400

(Being machinery bought)

(b) Depreciation a/c........ Dr ₹5,135

To Machinery a/c. ₹5,135

(Being machinery depreciated @ 33.34% for the full year)

(c) Profit & Loss a/c......... Dr ₹5,135

To Depreciation a/c. ₹5,135

(Being amount of depreciation transferred to p&l a/c)

Explanation:

You didn't give proper information. Assuming the machinery is bought on 1st Apr and the depreciation is charged for full year. Depreciation is calculated at 33.34%

Depreciation for = ₹15,400 × 33.34% the first year = ₹5,135