Question

Company purchases machine on 1.8. 2011
costing Rs. 22,00,000. It incurred expenditure
on installation Rs. 2,00,000 and the residual
value is expected to be Rs. 200.000. The rate
of depreciation is 15%. What would be the
amount of Fixed Asset with Written Down
Value as at 31.03.2013?
Rs. 18,36,000
Rs. 18,00,000
Rs. 20,00 400
Rs: 21.60.000​

Answer 1

Answer:

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Explanation:

Machinery Account

Dr.

Cr.

Date Particulars Amount (Rs) Date Particulars Amount (Rs)

2007     2008    

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

2008     2009    

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

2009     2010    

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

2010     2011    

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 (Rs) Date Particulars Amount (Rs)

2008     2008    

Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000

   25,000     25,000

2009     2009    

Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000

   25,000     25,000

2010     2010    

Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000

   25,000     25,000

2011     2011    

Mar. 31 Machinery A/c 25,000 Mar. 31 Profit and Loss A/c 25,000

   25,000     25,000

         

Working Note: Calculation of Depreciation