Question

On 1st April, 2010, Gama Ltd. purchased a 12

machine for 3,90,000 and spent Z 10,000 for its

installation. On 1st November, 2011, company

purchased another machine for 1,00,000 and

spent 20,000 on its overhauling. On

30th September, 2012, the machine purchased in

2010 was sold at a loss of Z 1,27,800. The company

charges depreciation @ 10% p.a. on written down

value basis. Accounts are closed on 31st March

every year. Prepare machine account up to

31st March 2013.
​

Answer 1

Answer:

machinery dr 40000

cash cr 40000

nov. machinery dr 100000

cash cr 100000

overhouling dr 20000

cash cr 20000

z dr 232200

loss dr 127800

depreciation dr 40000

machinery cr 400000

2012 year entry

depreciation dr 4167

machinery cr 4167

2013 entry

depreciation dr 9583

machinery cr 9583

closing machinery 86250