on 1-4-10, a company purchased plant and machinery for rs 200000.New machinery for rs 10000 was purchased on 1_1_2011 and for rs 20000 on 1-10-2011 on 1-7-2012 a machinery whose book value had been for rs 30000 on 1-4-2010 was sold for rs 16000 and the entire amount was credited to plant and machinery account.depreciation had been charged at 10% pa on straight line methid. account are closed on 31st march every year preapre plant and machinery a/c from 1_4_2010 to 31_3_2013
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Machinery Account |
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Dr. |
Cr. |
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Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
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2010 |
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2011 |
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Apr.01 |
Bank A/c (M1) |
2,00,000 |
Mar.31 |
Depreciation A/c (M1) |
20,000 |
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2011 |
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Jan.01 |
Bank A/c (M2) |
10,000 |
Mar.31 |
Depreciation A/c (M2) (3 months) |
250 |
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Dec. 31 |
Balance c/d |
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M1 |
1,80,000 |
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M2 |
9,750 |
1,89,750 |
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|
2,10,000 |
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|
2,10,1000 |
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2011 |
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2012 |
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Apr. 01 |
Balance b/d |
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Mar. 31 |
Depreciation A/c |
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|
1,80,000 |
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M1 |
20,000 |
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|
9,750 |
1,89,750 |
M2 |
1,000 |
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Oct. 01 |
Bank A/c (M3) |
20,000 |
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M3 (6 months) |
1,000 |
22,000 |
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Mar. 31 |
Balance c/d |
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M1 |
1,60,000 |
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M2 |
8,750 |
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M3 |
19,000 |
1,87,750 |
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|
2,09,750 |
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|
2,09,750 |
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2012 |
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2012 |
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Apr. 01 |
Balance b/d |
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|
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M1 |
1,60,000 |
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Jul.01 |
Bank A/c (Sale of M1) |
16,000 |
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M2 |
8,750 |
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Profit and Loss A/c (Loss on Sale) |
7,250 |
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M3 |
19,000 |
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2013 |
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Mar.31 |
Depreciation on- |
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|
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M1 (Balance) |
17,000 |
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M2 |
1,000 |
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M3 |
2,000 |
20,000 |
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Dec. 31 |
Balance c/d |
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M1 (1,60,000 – 23,250 – 17,000) |
1,19,750 |
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M2 |
7,750 |
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M3 |
17,000 |
1,44,500 |
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|
1,87,750 |
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|
1,87,750 |
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Calculation of Profit or Loss on Sale
|
Particulars |
Amount |
|
Value of M1 (part) as on Apr. 01, 2010 |
30,000 |
|
Less: Depreciation for year 2010-11 |
3,000 |
|
Value of M1 (part) as on Apr. 01, 2011 |
27,000 |
|
Less: Depreciation for year 2011-12 |
3,000 |
|
Value of M1 (part) as on Apr. 01, 2012 |
24,000 |
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Less: Depreciation for year 3 months (till 01 July,2012) |
750 |
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Value of M1 (part) as on date of sale |
23,250 |
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Less: Sale Value |
16,000 |
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Loss on Sale |
7,250 |
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Calculation of depreciation on remaining M1
|
Particulars |
Amount |
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Original Cost of M1 as on Apr. 01, 2010 |
2,00,000 |
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Less: Original Cost of M1 sold |
30,000 |
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Original Cost of remaining M1 |
1,70,000 |
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Therefore, depreciation on remaining M1 |
17,000 |
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