M/s Nishit printing press bought a printing machine for Rs. 6,80,000 on April 01,2015. Depreciation was provided on straight line basis at the rate of 20% on original cost. On April 01, 2017 a modification was made in the machine to increase its technical reliability for Rs. 70,000.On the same date, an important component of the machine was replaced for Depreciation, Provisions and Reserves Rs. 20,000 due to excessive wear and tear. Routine maintenance expenses during the year are Rs. 5,00 Prepare machinery account, provision for depreciation account. Show the working notes accordingly for the year ending March 31, 2018.

M/s Nishit printing press bought a printing machine for Rs. 6,80,000 o

1.	M/s Nishit printing press bought a printing machine for Rs. 6,80,000 on April 01,2015. Depreciation was provided on straight line basis at the rate of 20% on original cost. On April 01, 2017 a modification was made in the machine to increase its technical reliability for Rs. 70,000.On the same date, an important component of the machine was replaced for Depreciation, Provisions and Reserves Rs. 20,000 due to excessive wear and tear. Routine maintenance expenses during the year are Rs. 5,00 Prepare machinery account, provision for depreciation account. Show the working notes accordingly for the year ending March 31, 2018.
Answer» <html><body><p></p>Solution :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/NCERT_ACC_XI_P1_C07_S01_011_S01.png" width="80%"/> <br/> Working Notes <br/> `{:(,Rs.),("<a href="https://interviewquestions.tuteehub.com/tag/cost-25707" style="font-weight:bold;" target="_blank" title="Click to know more about COST">COST</a> of Machine for the <a href="https://interviewquestions.tuteehub.com/tag/year-1464599" style="font-weight:bold;" target="_blank" title="Click to know more about YEAR">YEAR</a> 2015",="6,80,000"),("<a href="https://interviewquestions.tuteehub.com/tag/depreciation-948712" style="font-weight:bold;" target="_blank" title="Click to know more about DEPRECIATION">DEPRECIATION</a> Charged for the ",),("Years 2015-16 and 2016-17",=2[(20)/(100)<a href="https://interviewquestions.tuteehub.com/tag/xx-747671" style="font-weight:bold;" target="_blank" title="Click to know more about XX">XX</a>"6,80,000"]),(,="2,72,000"):}` <br/> (2) `{:("Depreciation for the year 2017-18",=Rs."6,80,000"),("20% of 6,80,000",="1,36,000"),("20% of 90,000",="18,000"),("(i.e.,Rs. 70,000+Rs.20,000)",),("Depreciation for the year 2017-18",="1,54,000"):}`</body></html>

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