Advertisements
Advertisements
प्रश्न
On 1st April 2015, Suman Traders purchased Machinery for ₹ 30,000. On 1st Oct. 2015, they purchased further Machinery costing ₹ 20,000.
On 1st Oct. 2016, they sold the Machine purchased on 1st April 2015 for ₹ 18,000 and brought another Machine for ₹ 15,000 on the same date.
Depreciation is provided on Machinery @ 20% p.a. on the Diminishing Balance Method and the financial year closes on 31st March every year.
Prepare the Machinery Account and Depreciation Account for the year 2015-16, 2016-17, and 2017-18.
उत्तर
In the books of Suman Traders
| Dr. | Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2015 | 2016 | ||||||
| Apr. 1 | To Cash/Bank A/c | 30,000 | Mar. 31 | By Depreciation A/c (6,000 + 2,000) | 8,000 | ||
| Oct. 1 | To Cash/Bank A/c | 20,000 | Mar. 31 | By Balance c/d | 42,000 | ||
| 50,000 | 50,000 | ||||||
| 2016 | 2016 | ||||||
| Apr. 1 | To Balance b/d | 42,000 | Oct. 1 | By Cash/Bank A/c | 18,000 | ||
| Oct. 1 | To Cash/Bank A/c | 15,000 | Oct. 1 | By Depreciation A/c | 2,400 | ||
| Oct. 1 | By Profit and loss A/c (Loss on sale) | 3,600 | |||||
| 2017 | |||||||
| Mar. 31 | By Depreciation A/c | 5,100 | |||||
| Mar. 31 | By Balance c/d | 27,900 | |||||
| 57,000 | 57,000 | ||||||
| 2017 | 2018 | ||||||
| Apr. 1 | To Balance b/d | 27,900 | Mar. 31 | By Depreciation A/c | 5,580 | ||
| Mar. 31 | By Balance c/d | 22,320 | |||||
| 27,900 | 27,900 | ||||||
| 2018 | |||||||
| Apr. 1 | To Balance b/d | 22,320 | |||||
| Dr. | Depreciation Account | Cr. | |||||
| Date | Particular | J.F. | Amt ₹ | Date | Particular | J.F. | Amt ₹ |
| 2016 | 2016 | ||||||
| Mar. 31 | To Machinery A/c | 8,000 | Mar. 31 | By Profit and Loss A/c | 8,000 | ||
| 8,000 | 8,000 | ||||||
| 2016 | 2017 | ||||||
| Oct. 1 | To Machinery A/c | 2,400 | Mar. 31 | By Profit and Loss A/c | 7,500 | ||
| 2017 | |||||||
| Mar. 31 | To Machinery A/c | 5,100 | |||||
| 7,500 | 7,500 | ||||||
| 2018 | 2018 | ||||||
| Mar. 31 | To Machinery A/c | 5,580 | Mar. 31 | By Profit and Loss A/c | 5,580 | ||
| 5,580 | 5,580 | ||||||
Working Notes:
1. Calculation of Profit or loss on sale of machine:
Original cost on 01.04.2015 = ₹ 30,000
Less: Depreciation for 2015-16 (12 months) = ₹ 6,000
W.D.V. on 01.04.2016 = ₹ 24,000
Less: Depreciation for 2016-17 (6 months) = ₹ 2,400
W.D.V. on date of sale = ₹ 21,600
Less: Selling price = ₹ 18,000
∴ Loss on sale of machine = ₹ 3,600
2. Calculation of Depreciation for 2016-17:
(a) Opening balance on 01.04.2016 = ₹ 42,000
Less: W.D.V. of machine sold on 01.04.2016 = ₹ 24,000
18,000 – 20% = ₹ 3,600
(b) Purchase of machine on 01.10.2016 – 15,000 – 20% – 6months = 3,600 + 1,500 = ₹ 5,100
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
What is Fixed Instalment Method?
Write the word/term/phrase which can substitute the following statement:
The period for which the asset remains in working condition.
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
The amount that a fixed asset is expected to realise on its disposal is known as ______
State whether the following statement is True or False with reasons:
Depreciation increases the value of the asset.
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:
Depreciation need not be charged when business is making losses.
Complete the following sentence:
Depreciation is charged on ______ asset.
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
Under straight-line method, the amount of depreciation is ______.
Under the written-down value method of depreciation, the amount of depreciation is ______.
A depreciable asset may suffer obsolescence due to ______.
Distinguish between straight-line method and written down value method of providing depreciation.
A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.
Calculate the rate of depreciation under straight-line method from the following information:
Purchased second-hand machinery on 1.1.2018 for ₹ 38,000
On 1.1.2018 spent ₹ 12,000 on its repairs
Expected useful life of the machine is 4 years
Estimated residual value ₹ 6,000.
An asset is purchased for ₹ 50,000. The rate of depreciation is 15% p.a. Calculate the annual depreciation for the first two years under the diminishing balance method.
Furniture costing ₹ 5,000 was purchased on 1.1.2016, the installation charges being ₹ 1,000. The furniture is to be depreciated @ 10% p.a. on the diminishing balance method. Pass journal entries for the first two years.
On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.
Correct the following statement and rewrite the statement.
Underwritten down value method depreciation is calculated on the original cost of an asset.
A machine costing ₹ 23,000 is estimated to have a life of 7 years and the scrap value is estimated at ₹ 2,000 at the end of its useful life. Find out the amount of depreciation p.a.
Sameer & Company, Mumbai purchased a Machine worth ₹ 2,00,000 on 1st April 2016. On 1st July 2017, the company purchased an additional Machine for ₹ 40,000.
On 31st March 2019, the company sold the Machine purchased on 1st July 2017 for ₹ 35,000. The company writes off depreciation at the rate of 10% on the original cost and the books of accounts are closed every year on 31st March.
Show the Machinery Account and Depreciation Account for the first three years ending 31st March 2016-17, 2017-18 and 2018-19
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
