I need a solution to a problem related to chapter depreciation of class 11th accountancy My question is as follows - Accountancy - Depreciation Provisions and Reserves

Question

I need a solution to a problem related to chapter depreciation of
class 11th accountancy My question is as follows : A company
purchased a second hand machinery on 1st may 2009 for Rs 5,85,000
and immediately spent Rs 15,000 on it's errection On 1st October
2010 it purchased another machine for Rs 4,00,000 On 31st july it
sold off the first machine for rs 2,50,000 and bought another
machine for 4,20,000 On 1st november 2012 it sold of the second
machine for Rs3,00,000 Depreciation is charged @15% pa on equal
installment method SHow the machinery a/c for 4 years assuming the
books closed every year at 31st march
plz answer the question soon

Neha Chopra · Accepted Answer

Dear Student

Machinery Account

Dr

Date
Particulars
Amount
Date
Particulars
Amount

(Rs)

2009-10

1-May
To Bank A/c
600,000
31-Mar
By Depreciation A/c
82,500

31-Mar
By Balance c/d
517,500

600,000

2010-11

1-Apr
To Bal b/d
517,500
31-Mar
By Depreciation A/c
120,000

01-Oct
To Bank
400,000
31-Mar
By Balance c/d
797,500

917,500

2011-12

1-Apr
To Bal b/d
797,500
31-Jul
By Depreciation A/c
30,000

31-Jul
To Bank
420,000
31-Jul
By Bank
250,000

31-Jul
By Loss on Sale
147,500

31-Mar
By Depreciation A/c
102,000

31-Mar
By Bal C/d
688,000

1,217,500

2012-13

1-Apr
To Bal b/d
688,000
1-Nov
By Depreciation A/c
35,000

1-Nov
To P/L A/c
25,000
1-Nov
By Bank
300,000

31-Mar
By Depreciation A/c
63,000

31-Mar
By Bal C/d
315,000

713,000

Calculation of Depreciation on all
machines

Year
Particulars
Machinery 1
Machinery 2
Machinery 3

2009-10

Depreciation for 11 months
82500

2010-11

Depreciation for 12 months
90000

Depreciation For 6 months

30000

2011-12

Depreciation for 4 months
30000

Total Depreciation Till 31 July
2011
202500

Depreciation for 8 months

42000

Depreciation for 12 months

60000

2012-13

Depreciation For 7 months

35000

Depreciation Till 1 Nov

125000

Depreciation For 12 months

63000

Regards

Machinery Account
Dr.
Date	Particulars	Amount	Date	Particulars	Amount
		(Rs)			(Rs)
2009-10			2009-10
1-May	To Bank A/c	600,000	31-Mar	By Depreciation A/c	82,500
			31-Mar	By Balance c/d	517,500


		600,000			600,000

2010-11			2010-11
1-Apr	To Bal b/d	517,500	31-Mar	By Depreciation A/c	120,000
01-Oct	To Bank	400,000	31-Mar	By Balance c/d	797,500


		917,500			917,500


2011-12			2011-12
1-Apr	To Bal b/d	797,500	31-Jul	By Depreciation A/c	30,000
31-Jul	To Bank	420,000	31-Jul	By Bank	250,000
			31-Jul	By Loss on Sale	147,500
			31-Mar	By Depreciation A/c	102,000
			31-Mar	By Bal C/d	688,000
		1,217,500			1,217,500

2012-13			2012-13
1-Apr	To Bal b/d	688,000	1-Nov	By Depreciation A/c	35,000
1-Nov	To P/L A/c	25,000	1-Nov	By Bank	300,000
			31-Mar	By Depreciation A/c	63,000
			31-Mar	By Bal C/d	315,000

		713,000			713,000

Calculation of Depreciation on all machines
Year	Particulars	Machinery 1	Machinery 2	Machinery 3
2009-10
	Depreciation for 11 months	82500
2010-11
	Depreciation for 12 months	90000
	Depreciation For 6 months		30000
2011-12
	Depreciation for 4 months	30000
	Total Depreciation Till 31 July 2011	202500
	Depreciation for 8 months			42000
	Depreciation for 12 months		60000
2012-13
	Depreciation For 7 months		35000
	Depreciation Till 1 Nov		125000
	Depreciation For 12 months			63000