Question

m Ltd purchased a machinery on 1st july 2016 for rs 180000 and paid rs20000 as installation charges. it also purchased on another machinery on 1st Jan 2018 for Rs50000.The machinery purchased on 1st July 2016 was sold for 130000 on 1st October 2018. Prepare machinery account for 4 years assuming that. a) The rate of depreciation is 10%p.a. b)The book closes on 31st December every year.​

Answer 1

ANSWER

Balance in 'Provision for depreciation Account" as on 31.03.2015:-

Balance in 'Provision for depreciation Account" as on 31.03.2015:-= depreciation on unsold machinery + Depreciation on new machinery

Balance in 'Provision for depreciation Account" as on 31.03.2015:-= depreciation on unsold machinery + Depreciation on new machinery= RS- 3,36,000 + RS-4,000

Balance in 'Provision for depreciation Account" as on 31.03.2015:-= depreciation on unsold machinery + Depreciation on new machinery= RS- 3,36,000 + RS-4,000RS-3,40,000.

Balance in 'Provision for depreciation Account" as on 31.03.2015:-= depreciation on unsold machinery + Depreciation on new machinery= RS- 3,36,000 + RS-4,000RS-3,40,000.Working notes:-

Balance in 'Provision for depreciation Account" as on 31.03.2015:-= depreciation on unsold machinery + Depreciation on new machinery= RS- 3,36,000 + RS-4,000RS-3,40,000.Working notes:-1) Depreciation on existing machinery from

1.4.2012 to 31.03.2015 (3 years):-

1.4.2012 to 31.03.2015 (3 years):-= (12,00,000 - 80,000) 11,20,000 x 10/100 x 3 years

1.4.2012 to 31.03.2015 (3 years):-= (12,00,000 - 80,000) 11,20,000 x 10/100 x 3 years= RS-3,36,000

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)= 80,000 x 10/100 x 6/12

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)= 80,000 x 10/100 x 6/12= RS-4,000.

I HOPE IT'S HELP YOU