Q22. On 1st April 2015 Xltd. purchased a plant and Machinery for Rs. 43000. It was estimated that the effective
life of the plant and Machinery will be 10 year and after 10 years its scrap value will be Rs. 3000.
(8)
On 1st April 2016 the company purchased additional machine for Rs. 25000 of which the effective life
will be 15 year and scrap value Rs. 2500.
On 1st October 2017 a new machine was purchased for Rs. 12000 of which the scrap value will be Rs. 2000 and
effective life 20 years
Show the plant and machinery A/C upto 31 march 2019. If depreciation is provided on straight line method.
The accounts are closed o 31st march every year.
Answers
Answer:
Explanation:
the picture is the graph or a column where everything is showd.
Following is the calculation of depreciation using straight line method.
1) depreciation on machine 1 :-
Given, on 1/4/2015 new plant and machinery purchased for ₹43,000
estimated life of the machine = 10 years
scrap value after 10 years = 3,000
value of the machine that can be depreciated = cost - scrap value = 43,000 - 3,000 = 40,000. now to calculate depreciation for 4 year divide this depreciable amount by machine's effective life and multiply by 4 years =
= ( 40,000 / 10 ) * 4 = 16,000
2) depreciation on machine 2 :-
given, on 1/4/16 machine purchased for ₹25,000. estimated life = 15 years. scrap value = 2,500. value of the machine that can be depreciated = cost - scrap value = 25000 - 2500 = 22,500. now to calculate depreciation for 3 year divide this depreciable amount by machine's effective life and multiply by 3 years = ( 22,500 / 15 ) * 3 = 4,500
3) depreciation on machine 3 :-
given, on 1/10/17 machine purchased for ₹12,000. estimated life = 20 years. scrap value = 2,000. value of the machine that can be depreciated = cost - scrap value = 12,000 - 2000 = 10,000. now to calculate depreciation for 1 year divide this depreciable amount by machine's effective life =
= 10,000/20 = 500. but for this machinery depreciation is calculated for 1 year and 6 months. so additional depreciation for 6 months = 500 *6/12
= 250. total depreciation = 500+250 = 750.