A plant purchased on 1st June 2015 at a cost of Rs 15000 and Rs 5000 was spent on its
installation. The depreciation is written off at 15% on the original cost every year. The
books are closed on 31st December each year. The machine was sold for Rs 9500 on
31st march 2019. Show the machinery account for all the years.
Answers
Answer:
Date Particulars Amount (₹) Date Particulars Amount (₹)
2015 2016
Apr. 01 Bank A/c (1,90,000 + 10,000) 2,00,000 Mar. 31 Depreciation A/c 25,000
Mar. 31 Balance c/d 1,75,000
2,00,000 2,00,000
2016 2017
Apr. 01 Balance b/d 1,75,000 Mar. 31 Depreciation A/c 25,000
Mar. 31 Balance c/d 1,50,000
1,75,000 1,75,000
2017 2018
Apr. 01 Balance b/d 1,50,000 Mar. 31 Depreciation A/c 25,000
Mar. 31 Balance c/d 1,25,000
1,50,000 1,50,000
2018 2019
Apr. 01 Balance b/d 1,25,000 Mar. 31 Depreciation A/c 25,000
Mar. 31 Balance c/d 1,00,000
1,25,000 1,25,000
Depreciation Account
Dr. Cr.
Date Particulars Amount (₹) Date Particulars Amount (₹)
2016 2016
Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000
25,000 25,000
2017 2017
Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000
25,000 25,000
2018 2018
Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000
25,000 25,000
2019 2019
Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000
25,000 25,000