Answer 10 fast On 1st January, 2013, a machinery of the original value of QO,OOO which
included in the machinery purchased on 1st April, 2010, was sold for pre as
Plant & Machinery A/c for three years after providing depreciation at
Straight Line Method. Accounts are closed on 3 1st March every year.
I Ans. Loss on sale of machinery {8,500; Balance of Machinery A/c on
March 2013,
. 10. From the following transactions of a concern, prepare Machinery Account
for the year ending 31st March, 2013 :
2012
April
I
April I
Sept.
30
31
Dec.
2013
March 3 1
Purchased a second-hand machinery for «40,000.
Spent 10,000 on repairs for making it serviceable.
Purchased additional new machinery for 00,000.
Repairs and renewals of machinery < 2,000.
Depreciate the machinery at 10% p.a.
[Ans. Balance of Machinery on 31-3-2013,
Hint :— Repair charges of have been incurred on Dec., 31 whereas the machinery
has been purchased on Sept. 30. As such, it is an expenditure of revenue nature and hence
not be recorded in Machinery A/c.
Diminishing Balance Method
Q. 11. A plant is purchased for on 1st April, 2009. It is estimated thatthe
residual value of this plant at the end of its working life of 10 years will be 00,920•
Depreciation is to be provided at 10% p.a. on diminishing balance method.
and spe
costing
2009 w
(64,00
Down
2013.
March,
Q.
machil
the ma
deprec
clos
2010
purch
On Is
loss o
machi
