X Ltd has imported a machine on 1st July 2015 for 128000 paid customs duty and freight 64000 and incurred erection charges 48000 another local machinery costing 80000 was purchased on January 1 2016 on 1st July 2017 a portion of the imported machinery value on third got out of order and was sold for 27840 another machinery was purchased to replace the same for 40000 on 1st July. depreciation is being provided @ 20%p.a. on original cost of machinery. show machinery account for 2015, 2016and 2017 ending as on 31 December each year
Answers
Explanation:
Machinery Account of X Ltd
Debit. Credit.
Date Particulars Amount(Rs) Date Particulars Amount(Rs)
2011 2012
Oct.1 Bank A/c 2,40,000 Mar. 31 Depreciation A/c
M1 80,000 M1 8,000
M2 1,60,000 M2 16,000 24,000
Balance c/d
M1 72,000
M2 1,44,000 2,16,000
2,40,000 2,40,000
2012 2013
Apr. 01 Balance b/d Mar.31 Depreciation A/c
M1 72,000 M1 16,000
M2 1,44,000 2,16,000 M2 32,000
Apr.01 Bank A/c (M3) 80,000 M3 16,000 64,000
Mar.31 Balance c/d
M1 56,000
M2 1,12,000
M3 64,000 2,32,000
2,96,000 2,96,000
2013 2013
Apr. 01 Balance b/d Oct. 01 Depreciation A/c (on M1 for 6 months) 8,000
M1 56,000 Bank A/c (Sale of M1) 27,840
M2 1,12,000 Profit and Loss A/c (Loss on Sale) 20,160
M3 64,000 2,32,000 2014
Mar.31 Depreciation on-
Oct.01 Bank A/c (M4) 40,000 M2 32,000
M3 16,000
M4 4,000 52,000
Mar.31 Balance c/d
M2 80,000
M3 48,000
M4 36,000 1,64,000
2,72,000 2,72,000
Particulars Amount
Value of M1 as on Apr. 01, 2013 56,000
Depreciation for 6 months(loss) 8,000
Value of M1 as on Oct. 01, 2013 48,000
Sale Value(loss) 27,840
Net Loss on Sale 20,160