A firm purchased a second hand machine on 1st april 2005 and paid 140000 rs for it. its spent on its overhauling and installation 20000 rs . on 1st october , 2005 another machine coasting 80000 rs was purchased , on 1st october 2007 the machine purchased on 1st april, 2005 was disposed off 104000 rs and a new machine coasting 200000rs was installed. Depreciation was provided @10% p.a. by the straight line method. give the macinery account and depreciation accounts for 3 years. Firms book are closed on 31st march.
Machinery Account | |||||||||
Dr. |
| Cr. | |||||||
Date | Particulars | J.F. | Amount Rs | Date | Particulars | J.F. | Amount Rs | ||
2005 |
| 2006 |
| ||||||
April 01 | Bank (i) |
| 1,60,000 | March 31 | Depreciation (i) 16,000 (ii) 4,000 (6 Months) |
| 20,000 | ||
Oct. 01 | Bank (ii) |
| 80,000 | March 31 | Balance c/d (i) 1,44,000 (ii) 76,000 |
| 2,20,000 | ||
|
|
| 2,40,000 |
|
|
| 2,40,000 | ||
2006 |
|
|
| 2007 |
|
|
| ||
April 01 | Balance b/d (i) 1,44,000 (ii) 76,000 |
| 2,20,000 | March 31 | Depreciation (i) 16,000 (ii) 8,000 |
| 24,000 | ||
|
|
|
| March 31 | Balance c/d (i) 1,28,000 (ii) 68,000 |
| 1,96,000 | ||
|
|
| 2,20,000 |
|
|
| 2,20,000 | ||
2007 |
|
|
| 2007 |
|
|
| ||
April 01 | Balance b/d (i) 1,28,000 (ii) 68,000 |
| 1,96,000 | Oct. 01 | Depreciation
|
| 8,000 | ||
Oct. 01 | Bank (iii) |
| 2,00,000 | Oct. 01 | Bank |
| 1,04,000 | ||
|
|
|
| Oct. 01 | Profit and Loss (Loss) |
| 16,000 | ||
|
|
|
| 2008 |
|
|
| ||
|
|
|
| March 31 | Depreciation (ii) 8,000 (iii) 10,000 (6 Months) |
| 18,000 | ||
|
|
|
| March 31 | Balance c/d (ii) 60,000 (iii) 1,90,000 |
| 2,50,000 | ||
|
|
| 3,96,000 |
|
|
| 3,96,000 | ||
|
|
|
|
|
|
|
|
Depreciation Account
Depreciation Account | ||||||
Dr. | Cr. | |||||
Date | Particulars | Amount | Date | Particulars | Amount | |
March 31, 2006 | Machinery A/c | 20,000 | March 31, 2006 | Profit and Loss A/c | 20,000 | |
|
| 20,000 |
|
| 20,000 | |
|
|
|
|
|
| |
March 31, 2007 | Machinery A/c | 24,000 | March 31, 2007 | Profit and Loss A/c | 24,000 | |
|
| 24,000 |
|
| 24,000 | |
|
|
|
|
|
| |
March 31, 2008 | Machinery A/c | 26,000 | March 31, 2008 | Profit and Loss A/c | 26,000 | |
|
| 26,000 |
|
| 26,000 | |
|
|
|
|
|
|
Working Notes:
WN 1: Calculation of Depreciation
WN 2: Calculation of profit or loss on sale of Machine (i)
Book Value on April 01, 2007 | 1,28,000 |
Less: depreciation for 6 Months | 8,000 |
Book value on Oct. 01, 2007 | 1,20,000 |
Less: Sale Value | 1,04,000 |
Loss on Sale | (16,000) |
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