Lakshmi Limited purchase of machinery for rupees 40000 on 14th October 2009 depreciation provided @ 10% per annum on the diminishing balance method on 1st January 2012 one fourth of the machinery was found unsuitable and disposed off for rupees 6000 on the same date and machinery at a cost of rupees 15000 was purchased prepare machinery account and provision for depreciation account for 4 years.
Dear Student,
Machinery A/c
Regards
Machinery A/c
Date | Particulars | L.F | Amount | Date | Particulars | L.f | Amount |
2009 | 2010 | ||||||
14th Oct | To Bank A/c | 40,000 | 31 Mar | By Balance c/d | 40,000 | ||
40,000 | 40,000 | ||||||
2010 | 2011 | ||||||
1st Apr | To balance b/d | 40,000 | 31st Mar | By Balance c/d | 40,000 | ||
40,000 | 40,000 | ||||||
2011 | 2012 | ||||||
1st Apr | To Balance b/d | 40,000 | 1st Jan | By Bank | 6,000 | ||
By Provision for Depreciation A/c | 2091 | ||||||
2012 | By Profit & Loss A/c(Loss) | 1908.75 | |||||
1st jan | To Bank | 15,000 | 31st Mar | By Balance c/d | 45,000 | ||
55,000 | 55,000 | ||||||
2013 | 2013 | ||||||
1st Apr | To Balance b/d | 45000 | 31st Mar | By Balance c/d | 45000 | ||
45000 | 45000 | ||||||
Provision for Depreciation Account | ||||||||
Dr. | Cr. | |||||||
Date | Particulars | J.F. | Amount ( Rs ) |
Date | Particulars | J.F. | Amount ( Rs ) |
|
2010 | 2010 | |||||||
31st Mar | To Balance c/d | 2,000 | March 31 | By Depreciation A/c (M1) | 2,000 | |||
2,000 | 2,000 | |||||||
2011 | 2011 | |||||||
Mar 31 | To Balance c/d (M1) | 5,800 | Mar 31 | By balance b/d | 2,000 | |||
March 31 | By Depreciation A/c (M1) | 3,800 | ||||||
5,800 | 5,800 | |||||||
2011 | 2011 | |||||||
To Machinery | 2091 | By Balance b/d | 5,800 | |||||
31st mar | To Balance c/d | 7290 | January 1 | By Depreciation A/c (1/4 of M1) | 641 | |||
March 31 | By Depreciation A/c: | |||||||
¾ of M1 | 2,565 | |||||||
M2 | 375 | 2,940 | ||||||
9381 | 9381 | |||||||
2013 | 2013 | |||||||
By Balance b/d | 7290 | |||||||
31st Mar | To Balance c/d | 11061 | March 31 | By Depreciation A/c | ||||
M1 2309 | ||||||||
M2 1462 | 3771 | |||||||
11061 | 11061 |
Regards