1.

A Limited has the following balances on 1st April, 2017: ₹ Machinery A/c 2,00,000 Provision for Depreciation A/c 90,000 The company charged depreciation 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year. On 1st October, 2017, a part of machinery purchased on 1st July, 2014 for ₹ 40,000 was sold for ₹ 18,400, charging CGST and SGST 6% each and on the same date a new plant was purchased for ₹ 1,00,000 plus IGST 12%.Prepare 'Machinery Account' and 'Provision for Depreciation Account' for the year ended 31st March, 2018.

Answer» A Limited has the following balances on 1st April, 2017:

















₹
Machinery A/c 2,00,000
Provision for Depreciation A/c 90,000



The company charged depreciation 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year. On 1st October, 2017, a part of machinery purchased on 1st July, 2014 for ₹ 40,000 was sold for ₹ 18,400, charging CGST and SGST 6% each and on the same date a new plant was purchased for ₹ 1,00,000 plus IGST 12%.

Prepare 'Machinery Account' and 'Provision for Depreciation Account' for the year ended 31st March, 2018.


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