On 1st April, 2000, Sonu Ltd. Purchased a machinery for ₹3,90,000 on which they spent ₹10,000 for carriage and other charges. On 1st November, 2001, they purchased another machinery for ₹1,20,000 and on 30th September, 2002, the first machinery was sold at a loss of ₹1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare Machinery Account upto 31st March, 2003.
Dear Student
Regards
| Machine A/c | |||||||
| Cr. | |||||||
| Date | Particulars | Amt | Date | Particulars | Amt | ||
| (Rs) | (Rs) | ||||||
| 2000-01 | 2000-01 | ||||||
| 01-Apr | Bank A/c | 400,000 | 31-Mar | Depreciation @ 10% WDV | 40,000 | ||
| 31-Mar | Bal C/d | 360,000 | |||||
| 400,000 | 400,000 | ||||||
| 2001-02 | 2001-02 | ||||||
| 01-Apr | Bal B/d | 360,000 | 31-Mar | Depreciation @ 10% (old machine) | 36,000 | ||
| 01-Nov | Bank A/c | 120,000 | (3,60,000 x 10%) | ||||
| 31-Mar | Depreciation @ 10% (New machine) | 5,000 | |||||
| (3,60,000 x 10%) | |||||||
| 31-Mar | Bal C/d | 439,000 | |||||
| 480,000 | 480,000 | ||||||
| 2002-03 | 2002-03 | ||||||
| 01-Jan | Bal B/d | 439,000 | 30-Sep | Depreciation (on first machine for 6 months) | 16,200 | ||
| 30-Sep | Bank A/c | 180,000 | |||||
| 30-Sep | Loss on Sale A/c | 127,800 | |||||
| 31-Mar | Depreciation (One machine Left) | 11,500 | |||||
| (1,15,000 x 10%) | |||||||
| 31-Mar | Bal C/d | 103,500 | |||||
| 439,000 | 439,000 | ||||||
| Calculation for MAchine sold | ||
| 01-04-00 | Machine purchased | 400,000 |
| 31-03-00 | Depreciation @ 10% WDV | (40,000) |
| 01-04-01 | WDV | 360,000 |
| 31-03-02 | Less : Dep @ 10% | (36,000) |
| 01-04-02 | WDV | 324,000 |
| 30-09-02 | Depreciation for 6 months | (16,200) |
| WDV after Depreciation | 307,800 | |
| Loss on Sale | 127,800 | |
| Sales Value (3,07,800 - 1,27,800) | 180,000 | |
Regards