On 1st April,2010, Plant and Machinery was purchased for ₹120000 .New Machinery was purchased on 1st October, 2010 for 50,000 and on 1st July, 2011, for 25,000. On is January, 2013, a machinery of the original value of 20,000 which was included in the machinery purchased on 1st April , 2010, was sold for 6,000. Prepare Plant and Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year.
Answers
Answer:
1. Calculation of depreciation for the year 010 - 11
1st machine Rs 120000 * 10/100 = Rs 12000
2nd machine Rs 50000 * 10/100 * 6/12 = Rs 2500
Total = Rs 14500
2. Calculation of depreciation for the year 2011-12
1st machine Rs 120000 mathcal 1 * 10 100 =R S 12000
2nd machine Rs
50000 * 10/100 =
Rs 5000
3rd machine Rs Rs1875 25000 * 10/100 * 9/12 =
Total =Rs 18875
3. Calculation of depreciation for the year 2011-12
1st machine Rs l0 00 =Rs 12000 120000 * 10/100 =
2nd machine Rs 50000 * 10/100 = Rs 5000
3rd machine Rs 25000* 10 100 =Rs 2500
500
4th machine Rs 20000 * 10/100 * 3/12
Total =Rs 20000
Explanation:
Plant and machinery a/c
Date Particulars Amount Date Particulars Amount
2010 2011
Apr 1 To Bank a/c 120000 Mar 31 By Depreciation a/c 12000
Oct 1 To Bank a/c 50000 Mar 31 By Depreciation a/c 2500
Mar 31 By Balance c/d 155500
170000 170000
2011 2012
Apr 1 To Balance b/d 155500 Mar 31 By Depreciation a/c 15550
July 1 To bank a/c 25000 Mar 31 By Depreciation a/c 1875
Mar 31 By Balance c/d 140575
180500 180500
2012 2013
Apr 1 To Balance b/d 140575 Jan 1 By Bank a/c 6000
Mar 31 By Depreciation a/c 14057.5
Mar 31 By Depreciation a/c 500
Mar 31 By Balance c/d 120017.5
140575 140575