Question 25.
A Machinery was purchased for ₹ 1,80,000 on 1st July, 2015. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2017 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2016 to 2018, if the books are closed on 31st March every year.
Answers
Answer:
A Machinery was purchased for ₹ 1,80,000 on 1st July, 2015. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2017 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2016 to 2018, if the books are closed on 31st March every year.
Machinery A/c for the year ended 31st March,2016 to 2018
Explanation:
Machinery A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
1.7.15 To Bank A/c 31.3.16 By Dep. A/c -
Mach 1(3/4) 135000 Mach 1(9m)(3/4) 10125
Mach 1(1/4) 45000 Mach 2(9m)(1/4) 3375
By Bal c/d-
Mach 1(3/4) 124875
Mach 1(1/4) 41625
180000 180000
1.4.16 To Bal b/d- 31.3.17 By Dep. A/c
Mach 1(3/4) 124875 Mach 1(3/4) 12488
Mach 1(1/4) 41625 Mach 1 (1/4) 4162
By Bal. c/d
Mach 1(3/4) 112387
Mach 1(1/4) 37463
166500 166500
1.4.17 To Bal b/d- 1.10.18 By Dep. A/c
Mach 1(3/4) 112387 Mach 1(1/4) 1873
Mach 1(1/4) 37463 By Bank A/c 36000
1.10.17 To P&L A/c 410 31.3.18 By Dep. A/c(3/4) 11238
(Profit) By Bal c/d(3/4) 101349
150260 150260