Question

charge depreciation @ 10% per annum for 2 months on machine costing rupees 30000 journal entry​

Answer 1

Answer:

depreciation a/c dr 500

to machinery a/c 500

30,000*10%×2/12=500

Answer 2

Depreciation A/c                                -----dr                        500

            To Machinery A/c                                                           500

(being Depreciation charged on Machinery costing 30,000 @10% per annum for two years)

GIVEN: Charge depreciation @ 10% per annum for 2 months on a machine costing rupees 30000
TO FIND Journal Entry for the depreciation.
SOLUTION:
As we are given in the question,

Cost of Machinery = 30,000

Rate of Depreciation = 10% per annum

Time for which depreciation is to e charged = 2 months

As we know,

Amount of depreciation = Cost * Rate * Time/12

Amount of depreciation = 30,000 * 10% * 2/12

Amount of depreciation = 30,000 * 10/100 * 1/6

Amount of depreciation = 30,000 * 1/10 * 1/6

Amount of depreciation = 5,000/10

Amount of depreciation = 500

Therefore,

The required journal entry for charging the depreciation on machinery costing 30,000 at the rate of 10% per annum for 2 months:

Depreciation A/c                                -----dr                        500

            To Machinery A/c                                                           500

(being Depreciation charged on Machinery costing 30,000 @10% per annum for two years)

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