Saraswati Ltd. purchased a machinery costing Rs. 10,00,000 on January 01,
2011. A new machinery was purchased on 01 May, 2012 for Rs. 15,00,000 and
another on July 01, 2014 for Rs. 12,00,000. A part of the machinery which
originally cost Rs. 2,00,000 in 2011 was sold for Rs. 75,000 on April 30, 2014.
Show the machinery account, provision for depreciation account and machinery
disposal account from 2011 to 2015 if depreciation is provided at 10
p.a. on
original cost and account are closed on December 31, every year.
Answers
Machinery A/c, Provision for Depreciation A/c and Machine disposal A/c
Explanation:
In the books of Saraswati Ltd.
Machinery A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
1.1.11 To Bank A/c 10,00,000 31.12.11 By Bal c/d 10,00,000
(Mach 1)
1.1.12 To Bal b/d 10,00,000 31.12.12 By Bal c/d 25,00,000
1.5.12 To Bank A/c 15,00,000
(Mach 2)
1.1.13 To Bal b/d 25,00,000 31.12.13 By Bal c/d 25,00,000
1.1.14 To Bal b/d 25,00,000 30.4.14 By Mach 200000
disposal A/c 1.7.14 To Bank A/c 12,00,000 31.12.14 By Bal c/d 3500000
(Mach 3)
3700000 3700000
Provision for Depreciation A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
31.12.11 To Bal c/d 1,00,000 31.12.11 By Dep. A/c 1,00,000
()
31.12.12 To Bal c/d 300000 1.1.12 By Bal b/d 1,00,000
31.12.12 By Dep. A/c
Mach 1 1,00,000
Mach 2 1,00,000
31.12.13 To Bal c/d 5,50,000 1.1.13 By Bal b/d 3,00,000
31.12.13 By Dep A/c
Mach 1 1,00,000
Mach 2 1,50,000
31.12.14 To Bal c/d 780000 1.1.14 By Bal b/d 5,50,000
30.4.14 By Dep. A/c 6,667.67
30.6.14 To Mach 66,667.67
disposal A/c
(Accumulated dep. of Mach 1) 31.12.14 By Dep A/c
Mach 1 80,000
Mach 2 1,50,000
Mach 3 60,000
846667.67 846667.67
31.12.15 To Bal c/d 1121667.67 1.1.15 By Bal b/d 780000
31.12.15 By Dep. A/c
Mach 1 80,000
Mach 2 1,50,000
Mach 3 1,20,000
1130000 1130000
Machinery Disposal A/c
Particulars Amount(Rs.) Particulars Amount(Rs.)
30.4.14 To Mach A/c 200000 30.4.14 By Prov. for 66,667.67
Dep. A/c
By Bank A/c 75000
By P&L A/c 58,333
200000 200000