Accountancy, asked by shruti2146, 4 months ago

Rohit Traders purchased machinery for Rs.60,000/- on 1st April 2016. The firm purchased another machinery for Rs.20,000/- on 1st October 2017. It sold the first machinery (purchased on 1st April 2016) for Rs.40,000/- on 30th Sept. 2018. The depreciation is charged @ 10% p.a. on straight line method. Prepare machinery account assuming that the books are closed on 31st March every year.

Answers

Answered by mamtachawla33
1

Answer:

Machinery Accounts      

Date Particular Amount Date Particular Amount

01-04-2016 To Cash 60000 31-03-2017 By Depreciation($60000*10%) 6000

   By Balance C/d 54000

Total 60000  Total 60000

     

01-04-2017 To Balance b/d 54000 31-03-2018 By Depreciation($60000*10%+$20000*10%*6/12) 7000

01-10-2017 To Cash 20000 31-03-2018 By Balance C/d 67000

Total 74000  Total 74000

     

01-04-2018 To Balance b/d 67000 30-09-2018 By Machinery sold account 45000

  30-09-2018 By Depreciation($60000*10%*6/12) 3000

  31-03-2019 By Depreciation($20000*10%) 2000

  31-03-2019 By Balance C/d 17000

 67000  Total 67000

     

 Machinery sold Account    

Date Particular Amount Date Particular Amount

30-09-2018 Machinery Account 45000 30-09-2018 By Cash 40000

   By loss on sale of machinery 5000

Total 45000   45000

     

Book Value of Machinery sold on September 30th    

Depreciation 2016-2017 6000    

Depreciation 2017-2018 6000    

Depreciation on Sept 2018 3000    

Total Depreciation 15000    

Book Value=($60000-$15000) 45000    

Sales Price 40000    

Loss on sale 5000    

Explanation:

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