Question 13.
A firm purchased a second-hand machine on 1st April, 2015 and paid ₹ 1,40,000 for it. It spent on its overhauling and installation ₹ 20,000. On 1st October, 2015, another machine costing ₹ 80,000 was purchased. On 1st October, 2017, the machine purchased on 1st April, 2015 was disposed off for ₹ 1,04,000, charging CGST and SGST @ 6% each and a new machine costing ₹ 2,00,000 was installed, paying CGST and SGST @ 6% each. Depreciation was provided @ 10% p.a. by the Straight Line Method. Give the Machinery Account and Depreciation Account for 3 years. Firm’s books are closed on 31st March every year.
Answers
Answer:
Explanation:
DEPRECIATION A/C
To Machinery A/c 20000 By Profit & loss A/c 20000
20000 20000
To Machinery A/c 24000 By profit & Loss A/c 24000
24000 24000
To Machinery A/c 8000 By profit & Loss A/c 26000
To Machinery A/c 18000
26000 26000
Working notes
1. Calulation of Depreciation
Machinery (1) = 160000 * 10 /100 = 16000 p.a
Machinery (2) = 80000 * 10 /100 = 8000 p.a
Machinery (3) = 200000 * 10 /100 = 20000 p.a
2. Calcultion of profit & loss
Book value on April 01, 2017 128000
less : Depreciation for 6 months (8000)
Book value on oct 2017 120000
Less : Sale value (104000)
Loss on sale 16000