Berlia Ltd. Purchased a second hand machine for Rs 56,000 on July 01, 2015 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 01, 2016, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation.(a) Depreciation is provided on machinery 10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018.(b) Prepare machinery account and depreciation account from the year 2015 to 20018, if depreciation is provided on machinery 10% p.a. on written down value method annually on December 31.

Berlia Ltd. Purchased a second hand machine for Rs 56,000 on July 01,

1.	Berlia Ltd. Purchased a second hand machine for Rs 56,000 on July 01, 2015 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 01, 2016, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation.(a) Depreciation is provided on machinery 10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018.(b) Prepare machinery account and depreciation account from the year 2015 to 20018, if depreciation is provided on machinery 10% p.a. on written down value method annually on December 31.
Answer» Berlia Ltd. Purchased a second hand machine for Rs 56,000 on July 01, 2015 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 01, 2016, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation. (a) Depreciation is provided on machinery 10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018. (b) Prepare machinery account and depreciation account from the year 2015 to 20018, if depreciation is provided on machinery 10% p.a. on written down value method annually on December 31.