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प्रश्न
On 1st January 2017 ‘Sai Industries, Nagpur’ purchased a Machine costing ₹ 1,65,000 and spent ₹ 15,000 for its installation charges. The estimated life of the Machine is to be 10 years and the scrap value at the end of its life would be ₹ 30,000. On 1st October 2018, the entire Machine was sold for ₹ 1,50,000.
Show Machinery Account, Depreciation Account, for the years 2016-17, 2017-18, and 2018-19 assuming that the accounts are closed on 31st March every year.
उत्तर
In the books of Sai Industries, Nagpur
| Dr. | Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2017 | 2017 | ||||||
| Jan. 1 | To Cash/Bank A/c | 1,80,000 | Mar. 31 | By Depreciation A/c | 3,750 | ||
| Mar. 31 | By Balance c/d | 1,76,250 | |||||
| (1,65,000 + 15,000) | 1,80,000 | 1,80,000 | |||||
| 2017 | 2018 | ||||||
| Apr. 1 | To Balance b/d | 1,76,250 | Mar. 31 | By Depreciation A/c | 15,000 | ||
| Mar. 31 | By Balance c/d | 1,61,250 | |||||
| 1,76,250 | 1,76,250 | ||||||
| 2018 | 2018 | ||||||
Apr. 1 |
To Balance b/d | 1,61,250 | Oct. 1 | By Cash/Bank A/c | 1,50,000 | ||
| Oct. 1 | By Depreciation A/c | 7,500 | |||||
| Oct. 1 | By Profit and Loss A/c (Loss on sale) | 3,750 | |||||
| 1,61,250 | 1,61,250 | ||||||
| Dr. | Depreciation Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2017 | 2017 | ||||||
| Mar. 31 | To Machinery A/c | 3,750 | Mar. 31 | By Profit and Loss A/c | 3,750 | ||
| 3,750 | 3,750 | ||||||
| 2018 | 2018 | ||||||
| Mar. 31 | To Machinery A/e | 15,000 | Mar. 31 | By Profit and Loss A/c | 15,000 | ||
| 15,000 | 15,000 | ||||||
| 2018 | 2019 | ||||||
| Oct. 1 | To Machinery A/c | 7,500 | Mar. 31 | By Profit and Loss A/c | 7,500 | ||
| 7,500 | 7,500 | ||||||
Working Notes:
1. `"Calculation of Depreciation per annum:
Depreciation" = "Original cost of an asset (−) Scrapvalue"/ "Estimated life of asset in years"`
= `"1,80,000 − 30,000"/10`
= `"1,50,000"/10`
= ₹ 15,000 p.a.
2. Calculation of Profit or loss on sale of machine:
Original cost 01.01.2017 = ₹ 1,80,000
Less: Depreciation for 2016-17 (3 months) = ₹ 3,750
W.D.V. on 01-04-2017 = ₹ 1,76,250
Less: Depreciation for 2019-18 (12 months) = ₹ 15,000
W.D.V. on 01.04.2018 = ₹ 1,61,250
Less: Depreciation for 2018-19 (6 months) = ₹ 7,500
W.D.V. on date of sale = ₹ 1,53,750
Less: Selling price = ₹ 1,50,000
∴ Loss on sale of machine = ₹ 3,750
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संबंधित प्रश्न
Answer in One Sentence only:
What is a ‘Scrap Value’ of an asset?
Write the word/term/phrase which can substitute the following statement:
The method of depreciation in which the total depreciation is equally spread over the life of the asset.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount of depreciation remains constant every year under ______
State whether the following statement is True or False with reasons:
The Profit or Loss on sale of fixed asset is ascertained only after charging depreciation.
State whether the following statement is True or False with reasons:
Wages paid for installation of Machinery are debited to Wages A/c.
Do you agree or disagree with the following statement:
The rate of depreciation depends upon the life of fixed asset.
Complete the following sentence:
Under ______ system, the amount of depreciation changes every year.
Under the written-down value method of depreciation, the amount of depreciation is ______.
Depreciation is to be calculated from the date when ______.
List out the various methods of depreciation.
State the advantages of straight-line method of depreciation.
Distinguish between straight-line method and written down value method of providing depreciation.
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