Advertisements
Advertisements
प्रश्न
Vishal Company, Dhule, purchased Machinery costing ₹ 60,000 on 1st April 2016. They purchased further Machinery on 1st October 2017, costing ₹ 30,000, and on 1st July 2018, costing ₹ 20,000. On 1st Jan 2019, one-third of the Machinery, which was purchased on 1st April 2016, became obsolete and it was sold for ₹ 18,000.
Assume that, company account closes on 31st March every year.
Show Machinery Account for the first three(3) years and pass journal entries for the Third year, after charging depreciation at 10% p.a. on Written Down Value Method.
उत्तर
| In the books of Vishal Company, Dhule |
|||||||
| Dr. | Printing Machinery Account | Cr. | |||||
| Date | Particulars | J.F. | Amt (₹) | Date | Particulars | J.F. | Credit (₹) |
| 2016 | 2017 | ||||||
| Apr.1 | To Cash/Bank A/c | 60,000 | Mar.31 | By Depreciation A/c | 6,000 | ||
| Mar.31 | By Balance c/d | 54,000 | |||||
| 60,000 | 60,000 | ||||||
| 2017 | 2018 | ||||||
| Apr.1 | To Balance b/d | 54,000 | Mar.31 | By Depreciation A/c 5,400 + 1,500) | 6,900 | ||
| Oct.1 | To Cash/Bank A/c | 30,000 | Mar.31 | By Balance c/d | 77,100 | ||
| 84,000 | 84,000 | ||||||
| 2018 | 2019 | ||||||
| Apr.1 | To Balance b/d | 77,100 | Jan.1 | By Cash/Bank A/c | 18,000 | ||
| July. 1 | To Cash/Bank A/c | 20,000 | Jan.1 | By Depreciation A/c | 1,215 | ||
| 2019 | Mar.31 | By Depreciation A/c | 7,590 | ||||
| Jan.1 | To Profit and Loss A/c | 3,015 | Mar.31 | By Balance c/d | 73,310 | ||
| (Profit on sale) | |||||||
| 1,00,115 | 1,00,115 | ||||||
| 2019 | |||||||
| Apr.1 | To Balance b/d | 73,310 | |||||
| Journal of Vishal Company | ||||
| Date | Particulars | L.F. | Debit (₹) | Credit ₹ |
| 2018 July 1 | Machinery A/c ...Dr. | 20,000 | ||
| To Cash/Bank A/c | 20,000 | |||
| (Being purchase of machinery) | ||||
| 2019 Jan. 1 | To Cash/Bank A/c ...Dr. | 18,000 | ||
| Machinery A/c | 18,000 | |||
| (Being Sale machinery) | ||||
| Jan. 1 | Depreciation A/c ...Dr. | 1,215 | ||
| To Machinery A/c | 1,215 | |||
| (Being depreciation charged on machinery sold) | ||||
| Jan. 1 | Machinery A/c ...Dr. | 3,015 | ||
| To Profit and Loss A/c | 3,015 | |||
| (Being profit on sale on machinery) | ||||
| Mar. 31 | Depreciation A/c ...Dr. | 7,590 | ||
| To Machinery A/c | 7,590 | |||
| (Being in Depreciation charged at the end of the year) | ||||
| Mar. 31 | Profit and Loss A/c ...Dr. | 8,805 | ||
| To Depreciation A/c | 8,805 | |||
| (Being balance in Depreciation A/c transferred to P& L A/c) | ||||
| Total (₹) | 58,625 | 58,625 | ||
Working Notes:
1. Calculation of Profit or Loss on sale as Machine:
Original cost on 01.04.2016 = ₹ 20,000
Less: Dep. for 2016-17 (12 months) = ₹ 2,000
W.D.V. on 01.04.2017 = ₹ 18,000
Less : Dep. for 2016-17 (12 months) = ₹ 1,800
W.D.V. on 01.04.2018 = ₹ 16,200
Less : Dep. for 2018-19 (9 months) = ₹ 1,215
W.D.V. on date of sale = ₹ 14,985
Less : Selling Price = ₹ 18,000
∴ Profit on sale & machine = ₹ 3,015
2. Depreciation for 2018-19
(a) Opening balance on 01.04.2018 = ₹ 77,100
Less : W.D.V. of Machine sold on 01.04.2018 = ₹ 16,200
10% depreciation on 60,900 = ₹ 6,090
(b) Purchase of Machine on 01.07.2018 20,000 – 10% – 9 months = ₹ 6,090 + ₹ 1,500 = ₹ 7,590
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
Which account is credited when depreciation is charged?
Write the word/term/phrase which can substitute the following statement:
Expenses incurred for fixation of the new asset to bring it in working condition.
Write the word/term/phrase which can substitute the following statement:
Method of depreciation that cannot reach to zero value.
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.
Complete the following sentence:
Under ______ system, the amount of depreciation changes every year.
Complete the following sentence:
In Fixed Instalment System the amount of depreciation is ______ every year.
A depreciable asset may suffer obsolescence due to ______.
What is the annuity method?
What is sinking fund method?
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.
A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation 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.
A boiler was purchased on 1st January 2015 from abroad for ₹ 10,000. Shipping and forwarding charges amounted to 12,000. Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000. Calculate depreciation for the first 3 years @10% p.a. on diminishing balance method assuming that the accounts are dosed 31st December each year.
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.
Raj & Co purchased a machine on 1st January 2014 for ₹ 90,000. On 1st July 2014, they purchased another machine for ₹ 60,000. On 1st January 2015, they sold the machine purchased on 1st January 2014 for ₹ 40,000. It was decided that the machine be depreciated at 10% per annum on the diminishing balance method. Accounts are closed on 31st December every year. Show the machinery account for the years 2014 and 2015.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
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 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 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 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.
