Q. No. 60). On 1st January, 2006 Jalota Enterprise purchased a machine for 20,000. On 1st July, 2007 a second machine was purchased for 10,000 and on Ist January, 2008 a third machine was purchased for 5,000. The depreciates its machines @ 20% p.a. on diminishing balance method. Show Machine Account and Depreciation Account for four years. (Ans. Balance of Machine A/c 17,182 Please solve it quickly .
Answers
Balance of Machinery A/C 20328 ( Accounting Year assumed 1 April - 31 March)
Explanation:
Depreciation Account
Date Particulars Amount Date Particulars Amount
31-3-06 To machinery I A/C 1000 31-3-06 By Profit and loss A/C 1000
1000 1000
31-3-07 To machinery I A/C 3800 31-3-07 By Profit and loss A/C 3800
3800 3800
31-3-08 To machinery I A/C 3040 31-3-08 By Profit and loss A/C 4790
31-3-08 To machinery II A/C 1500
31-3-08 To machinery III A/C 250
4790 4790
31-3-09 To machinery I A/C 2432 31-3-09 By Profit and loss A/C 5082
31-3-09 To machinery II A/C 1700
31-3-09 To machinery III A/C 950
5082 5082
Machinery Account
Date Particulars Amount Date Particulars Amount
01-1-06 To Bank A/C 20000 31-3-06 By Depreciation A/C 1000
31-3-06 By Balance c/d 19000
20000 20000
01-4-06 To Balance b/d 19000 31-3-07 By Depreciation A/C 3800
31-3-07 By Balance c/d 15200
19000 19000
01-4-07 To Balance b/d 15200 31-3-08 By Depreciation A/C 4790
01-7-07 To Bank A/C 10000 31-3-08 By Balance c/d 25410
01-1-08 To Bank A/C 5000
30200 30200
01-4-08 To Balance b/d 25410 31-3-09 By Depreciation A/C 5082
31-3-08 By Balance c/d 20328
25410 25410