lakshmi ltd purchased machine for 40000 on 1st october 2009 depreciation is 10% p a, written down value - Accountancy - Depreciation Provisions and Reserves

Question

lakshmi ltd purchased machine for 40000 on 1st october 2009
depreciation is 10% p a, written down value On 1st january 2012,
1/4th of the machine was sold for 6000 on the same date, new
machine for 15000 was purchased prepare a machinery account for the
next 3 years ​

Neelu Chathli · Accepted Answer

Dear Student
The solution to this question is as follows:

Machinery Account

Dr

Cr

Date
Particulars
J F
Amount
(Rs)
Date
Particulars
J F
Amount
(Rs)

2009

2010

October 1
To Bank A/c (M1)

40,000
March 31
By Depreciation A/c (M1)

2,000

March 31
By Balance c/d (M1)

38,000

40,000

2010

2011

April 1
To Balance b/d (M1)

38,000
March 31
By Depreciation A/c (M1)

3,800

March 31
By Balance c/d (M1)

34,200

38,000

2011

2012

April 1
To Balance b/d (M1)

34,200
January 1
By Depreciation A/c (1/4 of
M1)

641 25

January 1
To Bank A/c (M2)

15,000
January 1
By Bank A/c (1/4 of M1)

6,000

January 1
By Profit & Loss A/c
(Loss)

1,908 75

March 31
By Depreciation A/c:

¾ of M1
2,565

M2
375

2,940

March 31
By Balance c/d:

¾ of M1
23,085

M2
14,625

37,710

49,200

Hope this information clarifies your doubts Keep posting :-)
Regards

Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2009				2010
October 1	To Bank A/c (M1)		40,000	March 31	By Depreciation A/c (M1)			2,000
				March 31	By Balance c/d (M1)			38,000
			40,000					40,000
2010				2011
April 1	To Balance b/d (M1)		38,000	March 31	By Depreciation A/c (M1)			3,800
				March 31	By Balance c/d (M1)			34,200
			38,000					38,000
2011				2012
April 1	To Balance b/d (M1)		34,200	January 1	By Depreciation A/c (1/4 of M1)			641.25
January 1	To Bank A/c (M2)		15,000	January 1	By Bank A/c (1/4 of M1)			6,000
				January 1	By Profit & Loss A/c (Loss)			1,908.75
				March 31	By Depreciation A/c:
					¾ of M1	2,565
					M2	375		2,940
				March 31	By Balance c/d:
					¾ of M1	23,085
					M2	14,625		37,710
			49,200					49,200

lakshmi ltd purchased machine for 40000 on 1st october 2009. depreciation is 10% p.a, written down value. On 1st january 2012, 1/4th of the machine was sold for 6000. on the same date, new machine for 15000 was purchased. prepare a machinery account for the next 3 years.​

lakshmi ltd purchased machine for 40000 on 1st october 2009. depreciation is 10% p.a, written down value. On 1st january 2012, 1/4th of the machine was sold for 6000. on the same date, new machine for 15000 was purchased. prepare a machinery account for the next 3 years.