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M/s Singhania and Bros. purchased a plant of Rs. 5,00,000 on April o1.2017. and spent Rs.50,000 for its installation. The salvage value of the after its useful life of 10 years is estimated to be Rs. 10,000.Record journal entries for the year 2016-17 and draw up Plant account and Depreication Account for first three given theat the depreciation is charged using straight line method if : (i) The books of account close on March 31 every year, and (ii) The firm charges depreciation to the asset account |
| Answer» <html><body><p></p><a href="https://interviewquestions.tuteehub.com/tag/solution-25781" style="font-weight:bold;" target="_blank" title="Click to know more about SOLUTION">SOLUTION</a> :<img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/NCERT_ACC_XI_P1_C07_S01_001_S01.png" width="80%"/> <br/> Depreciation, Provisions and Reserves<br/> <img src="https://d10lpgp6xz60nq.cloudfront.net/physics_images/NCERT_ACC_XI_P1_C07_S01_001_S02.png" width="80%"/> <br/> <a href="https://interviewquestions.tuteehub.com/tag/working-1459914" style="font-weight:bold;" target="_blank" title="Click to know more about WORKING">WORKING</a> Notes <br/> (1) Calcuation of oiginal cost <br/> `{:(,"(<a href="https://interviewquestions.tuteehub.com/tag/rs-625947" style="font-weight:bold;" target="_blank" title="Click to know more about RS">RS</a>.)"),("Puchase cost","50,00,000"),("Add: Installation cost",underline("50,000")),("<a href="https://interviewquestions.tuteehub.com/tag/original-1139424" style="font-weight:bold;" target="_blank" title="Click to know more about ORIGINAL">ORIGINAL</a> cost","5,50,000"),("Salvage value",underline("10,000")),("Useful life",10"<a href="https://interviewquestions.tuteehub.com/tag/years-1464846" style="font-weight:bold;" target="_blank" title="Click to know more about YEARS">YEARS</a>"):}` <br/> Depreication amount `=(Rs."5,50,000-Rs. 10,000")/(10)=Rs. "54,000 p.a"`</body></html> | |