Question

On 1-4-2010 a company purchased plant and machinery for 200000 new machinery for 10000 was purchased on 1-1-2011 and for 20000 on1-10-2011 on 1-7-2012 a machinery whose book value had been 30000 on 1-4-2010 was sold for 16000 and the entire amount was credited to plant and machinery account depriciation had been charged 10% per annum on straight line method accounts are closed on 31 march every year show the plant and machinery account from 1-4-2010 to 31-3-2013

Answer 1

Answer:

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Explanation:

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Answer 2

Answer :

Dr                                                   Machinery Account                            Cr

DateParticularsJFAmt.(Rs)DateParticularsJFAmt.(Rs)2001 Jan 1To Bank A/c M1 $$(8,00,000 + 2,00,000)10,00,0002001 Dec 31By Balance c/d10,00,00010,00,00010,00,0002002 Jan 1To Balance b/d (M1)10,00,0002002 Dec 31By Balance c/d25,00,000May 1To Bank A/c (M2)15,00,00025,00,00025,00,0002003 Jan 1To Balance b/d25,00,0002003 Dec 31By Balance c/d25,00,00025,00,00025,00,0002004 Jan 1To Balance b/d25,00,0002004 Oct 31By Machinery Disposal A/c2,00,000Jul 1To Bank A/c (M3)12,00,000Dec 31By Balance c/d

M1 = (10,00,000−2,00,000)

M2 = 15,00,000

M3 = 12,00,000

35,00,00037,00,00037,00,0002005 Jan 1To Balance b/d 

M1 = 8,00,000

M2 = 15,00,000

M3 = 12,00,000

35,00,0002005 Dec 31By Balance c/d

M1 = 8,00,000

M2 = 15,00,000

M3 = 12,00,000

35,00,000                                              35,00,000                         35,00,000

Dr                        Provision for Depreciation Account                         Cr

DateParticularsJFAmt.(Rs)DateParticularsJFAmt.(Rs)2001 Dec 31To Balance c/d1,00,0002001 Dec 31By Depreciation A/c1,00,0001,00,000

DateParticularsJFAmt. (Rs)DateParticularsJFAmt.(Rs)2003 Dec 31To Balance b/d5,50,0002003 Jan 1By Balance b/d3,00,000Dec 31By Depreciation A/c

M1= 1,00,000

M2= 1,50,000

2,50,0005,50,0005,50,0002004 Jan 31To Machinery Disposal A/c76,6672004 Jan 1By Balance b/d$$5,50,000$Dec 31To Balance c/d7,80,000Oct 31By Depreciation A/c16,667By Depreciation A/c 

M1 = 8,00,000

M2 = 1,50,000

M3 = 60,000

2,90,0008,56,6678,56,6672005 Dec 31To Balance c/d11,30,0002005 Jan1By Balance b/d7,80,000Dec 31By Depreciation A/c

M1 = 80,000

M2 = 1,50,000

M3 = 1,20,000

3,50,00011,30,00011,30,000

Dr                            Machinery Disposal Account                                 Cr

DateParticularsJFAmt.(Rs)DateParticularsJFAmt.(Rs)2004 Oct 31To Machinery A/c2,00,0002004 Oct 31By Depreciation A/c76,667Oct 31By Bank A/c (Sales Proceed)75,000Oct 31By Profit & Loss A/c (Loss on Sale)48,3332,00,0002,00,000

Working Note

Computation of Profit or Loss on Disposal

Total Dep charged on Machine till Oct 1,2004

(2001)20,000 + (2002) 20,000 + (2003) 20,000 + (2004 Oct) + 16,667 = Rs.76,667

 Value of Machine on Oct 1, 2004 = 2,00,000 - 76,667 = Rs.1,23,333

Loss on Sale of Machine = [1,2