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Question
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.
Solution
| In the books of Farid, Nasik Motor Car Account | |||||||
| Date | Particulars | J.F. | Amt (₹) | Date | Particulars | J.F. | Amt (₹) |
| 2015 | 2016 | ||||||
| Apr. 1 | To Cash/Bank A/c | 60,000 | Mar. 31 | By Depreciation A/c | 5,000 | ||
| Mar. 31 | By Balance c/d | 55,000 | |||||
| (55,000 + 5,000) | 60,000 | 60,000 | |||||
| 2016 | 2017 | ||||||
| Apr. 1 | To Balance b/d | 55,000 | Mar. 31 | By Depreciation A/c | 5,000 | ||
| Mar. 31 | By Balance c/d | 50,000 | |||||
| 55,000 | 55,000 | ||||||
| 2017 | 2018 | ||||||
| Apr. 1 | To Balance b/d | 50,000 | Mar. 31 | By Depreciation A/c | 5,000 | ||
| Mar. 31 | By Balance e/d | 45,000 | |||||
| 50,000 | 50,000 | ||||||
| 2018 | 2019 | ||||||
| Apr. 1 | To Balance b/d | 45,000 | Mar. 31 | By Depreciation A/c | 5,000 | ||
| Mar. 31 | By Balance c/d | 40,000 | |||||
| 45,000 | 45,000 | ||||||
| 2019 | |||||||
| Apr. 1 | To Balance b/d | 40,000 | |||||
Working Note:
Calculation of Depreciation per annum:
Depreciation = `"Original cost of an asset (−) Scrap value"/"Estimated life of asset in years"`
= `(60,000 − 10,000)/10`
= `(50,000)/10`
= ₹ 5,000 p.a.
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Solution:
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.
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 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.
