Question

M/s omkar enterprise jalgaon acquired a printing machine for rs75000 on 1 st oct. 2015 and spent rs5000 on its transport and installation .another machine for rs45000 was purchased on 1 st jan 2017. depreciation is charged at the rate of 20% on written down value method, on 31 st march every year. prepare printing machine account for first 4 year
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Answer 1

After charging Depreciation the value of Printing and Machiner Shows value Rs. 26,864

Explanation:

                                    Printing Machine Account

2015                                                     2016

Oct 1     To bank A/c      80,000         March 31     By Depreciation      8,000

                                                                                   By Balance C/d      72,000

2016 April 1  To Balance b/d 72,000  2017 March 31 Byepreciation14,400

                                                                                        By balance c/d57,600

2017 Apr 1    To Balance b/d 57,600  2018 March 31 BY Dep         11,520

                                                                                           By bal c/d  46,080

2018 Apr 1  To balance b/d 46,080    2019 March 31 By Dep       9,216      

                                                                                           By bal C/d 36,864