kalyani industries depreciate its machinery at 10%p.a on straight line basis.on 1st Apr 2009 the Balance in machinery account was 850000 (original
cost 1200000). On 1st july 2009 a new machine
was purchased for Rs 25000-on
31st December 2009 an old machine having written down
value of rs40000 on 1.4 2009 (original cost 60000) was sold for
30000, show the machinery Account for the
year ended on
machine
31st March 2010.
Answers
Explanation:
On 1st April, 2007, a limited company purchased a Machine for ₹ 1,90,000 and spent ₹ 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be ₹ 50,000 at the end of sixth year.
Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Installment Method. The books are closed on 31st March every year.
ANSWER:
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