Question

PERO में बेचा जा सका। चार वर्षों का मशीनरी खाता बनाइए।
Mittal Ltd, bought a machinery for 5,00,000 including a boiler worth 1,00,000. It was decided to charge
depreciation @ 10% p. a, on diminishing balance method. During the middle of fourth year, boiler became useless
due to damages to same of its vital parts. It could be sold only for 12,000. Prepare Machinery Account for 4
Sear​

Answer 1

Depreciation for 4th year :-

= 67553.75 x 15/100

= 10,133.

Working notes :-

1) Value of machinery = 1,00,000 + 10,000

= 1,10,000.

1st year depreciation :-

= 1,10,000 x 15/100

= 16,500.

2nd year depreciation :-

= (1,10,000 - 16,500) 93,500 x 15/100

= 14,025

3rd year depreciation :-

= (93500 - 14,025) 79,475 x 15/100

= 11,921.25.