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Kalyani industries depreciate its machinery at 10%p.a on straight line basis.on 1st Apr 2009 the Balance in machinery account was 850000 (originalcost 1200000). On 1st july 2009 a new machinewas purchased for Rs 25000-on31st December 2009 an old machine having written down value of rs40000 on 1.4 2009 (original cost 60000) was sold for 30000, show the machinery Account for theyear ended onmachine31st March 2010. |
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Answer» Explanation: On 1st April, 2007, a limited company purchased a Machine for ₹ 1,90,000 and spent ₹ 10,000 on its installation. At the date of PURCHASE, it was estimated that the scrap value of the machine would be ₹ 50,000 at the end of sixth year. Give Machine Account and Depreciation A/c in the books of the Company for 4 YEARS after providing depreciation by Fixed Installment Method. The books are closed on 31st March every year. ANSWER: Machinery Account Dr. Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2007 2008 APR. 01 Bank A/c (1,90,000 + 10,000) 2,00,000 Mar. 31 Depreciation A/c 25,000 Mar. 31 Balance c/d 1,75,000 2,00,000 2,00,000 2008 2009 Apr. 01 Balance b/d 1,75,000 Mar. 31 Depreciation A/c 25,000 Mar. 31 Balance c/d 1,50,000 1,75,000 1,75,000 2009 2010 Apr. 01 Balance b/d 1,50,000 Mar. 31 Depreciation A/c 25,000 Mar. 31 Balance c/d 1,25,000 1,50,000 1,50,000 2010 2011 Apr. 01 Balance b/d 1,25,000 Mar. 31 Depreciation A/c 25,000 Mar. 31 Balance c/d 1,00,000 1,25,000 1,25,000 |
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