Question

On 1-1-2010 a machinery was purchased for 8000. it was sold on 30-6-2013 for 6000. depreciation is charged at 10% on original coat. book are closed on 31st december every year . prepare machinery account and depreciation accpunt for the above preiod .

Answer 1

1-1-2010- To Bank A/c 8000      31-12-2010 By Depriciation 10%  800
                                                                       By Balance C/d         7200
1-1-2011- To Balance b/d 7200  31-12-2011By Depriciation 10%    800
                                                                       By Balance c/d          6400
1-12012- To Balance b/d 6400   31-12-2012 By Depriciation 10%   800
                                                                       By Balance c/d         5600
1-1-2013- To Balance b/d 5600   30-06-2013By Depriciation 10%
                                                                                on 6 month        400
30-6-2013  To P&L A/c       800                        By Bank A/c              6000