M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2001 for Rs 1,00,000. On July 01, 2002 another machine costing Rs 2,50,000 was purchased . The machine purchased on April 01, 2001 was sold for Rs 25,000 on October 01, 2005. The company charges depreciation @15% p.a. on straight line method. Prepare machinery account and machinery disposal account for the year ended March 31, 2006.

 

 

Books of M/s. Lokesh Fabrics

Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2001

2002

Apr.01

Bank (i)

1,00,000

Mar.31

Depreciation

15,000

Mar.31

Balance c/d

85,000

1,00,000

1,00,000

2002

2003

Apr.01

Balance b/d

85,000 

Mar.31

Depreciation

July.01 

Bank (ii)

2,50,000

(i) 15,000 + 28,125

43,125

Mar.31

Balance c/d

(i) 70,000, (ii) 2,21,875

2,91,875

3,35,000

3,35,000

2003

2004

Apr.01

Balance b/d

Mar.31

Depreciation

 (i) 70,000, (ii) 2,21,875

2,91,875 

(i) 15,000, (ii) 37,500

52,500

Mar.31

Balance c/d

(i) 55,000, (ii) 1,84,375

2,39,375

2,91,875

2,91,875

2004

2005

Apr.01

Balance b/d

Mar.31

Depreciation

(i) 5,500, (ii) 1,84,375 

2,39,375

(i) 15,000, (ii) 37,500

52,500

Mar.31

Balance c/d

(i) 40,000, (ii) 1,46,875

1,86,875

2,39,375

2,39,375

2005

2005

Apr.01

Balance b/d

Oct.01

Depreciation

7,500

(i) 40,000, (ii) 1,46,875

1,86,875

Oct.01

Machinery Disposal

32,500

2006

Mar.31

Depreciation (ii)

37,500

Mar.31

Balance c/d

1,09,375

1,86,875

1,86,875

Machinery Disposal Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

 Rs

2005

2005

Oct.01

Machinery

32,500

Oct.01

Bank

25,000

Oct.01

Profit and Loss

7,500

32,500

32,500