Question 16.
Following balances appear in the books of X Ltd. as on 1st April, 2017:
Machinery A/c – ₹ 5,00,000
Provision for Depreciation A/c – ₹ 2,25,000
The machinery is depreciated @ 10% p.a. on the Fixed Instalment Method. The accounting year being April-March. On 1st October, 2017, a machinery which was purchased on 1st July, 2014 for ₹ 1,00,000 was sold for ₹ 42,000 plus CGST and SGST @ 6% each and on the same date a new machine was purchased for ₹ 2,00,000 paying IGST @ 12%. Prepare Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2018.
Answers
Answer:
Explanation:
Output CGST A/c
To balance c/d 1400 By sales a/c 1400
1400 1400
Output SGST A/c
To Balance c/d 1400 By Sales 1400
1400 1400
Working Notes
1.Original cost of machinery = 1000000
Less accumalated Depreciation (32500)
Book value of machine = 67500
Less Sale of machine = 42000
Loss on sale of machine = 25500
2. Calculation of depreciation
On 160000 @ 10 % 40000
On 100000@10 % for 6 months 10000
On 40000 @ 10 % 5000
Total = 55000
Answer:
here is the ans
Explanation:
machinery and pfd account
