Machine purchased on 1 July 2015 ₹8000 ₹3500 installation charge depreciation is 10% per Annam . On 30 September 2018 it was sold for 6500 . prepare a machinery account assuming accounts are closed on 31 march
Answers
1st July 2009 Machine A/C Dr side to cash Rs 8000.
1st July 2009 Machine A/C Dr side to cash Rs 3500.
31st March 2010 Machine A/C Cr by depreciation 862.50 (11500 x 10% x 9/12) depreciation to be calculated for 9 months.
31 March 2010 machine A/C Cr side by balancing c/d 10637.50.
1st April 2010 machine A/C Dr side to balance b/d 10637.5.31 March 2011 machine A/C Cr side by depreciation 1150.
31 March 2011 machine A/C Cr side by balance c/d 9487.50.
1st April 2011, machine A/c Dr side to balance b/d 9487.50.
31st March 2012 Machine A/C Cr side by depreciation 1150.
31st March 2012 Machine A/C Cr side by balance c/d 8337.50.
1st April 2012, machine A/c Dr side to balance b/d 8337.50.
30th Sept 2012 by machine A/C Cr side by depreciation 575.
Depreciation till 30th Sept 2012 for 6 months.
30th Sept 2012 by machine A/C Cr side by cash 6500.
30th Sept 2012 by machine A/C Cr side by profit and loss a/c 1262.50.
There is a loss on sales of machine to the extent of 1262.50 which will be transferred to profit and loss account.