Question

From the following transactions prepare Machinery Account for the

year ending 31st March 2019. April 1st 2018- purchased a second-hand

machinery for Rs.40,000. April 1st 2018- Spent Rs.10,000 for making

it usable.Sep30th2018- Purchased on credit additional machinery for

Rs.20,000 Dec 31st2018- Paid Repairs and Renewals on second

machine Rs.2,000. Depreciate the asset at 10% p.a.​

Answer 1

Explanation:

MACHINARY ACCOUNT

1-4-18. to bank/ cash 50000. 31-3-19 by dep. 6000

30-9-18 to bank/cash 20000. 31-3-19 by bal 64000

NOTE: repairs to the extent of 2000 charged to p and l

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