Please answer it fast
On 1st August 2009, Gadore ltd. purchased a machinery for Rs.3,00,000. On 1st November, 2010 another machinery was purchased for Rs. 1,80,000. On 1st July 2011, the machine purchased on 1st August ,2009 was sold for Rs.1,68,000 and on the same date a fresh machinery was purchased for Rs, 2,00,000.
Depreciation was provided @ 10% p.a. on the reducing balance method .Books are closed on 31st March every year. You are required to prepare Machinery Account and provision for depreciation account for three years ending 31st March, 2012.
Dear Student
Regards
| Plant and Machinery A/c | |||||||
| Cr. | |||||||
| Date | Particulars | Amt | Date | Particulars | Amt | ||
| (Rs) | (Rs) | ||||||
| 2009-10 | 2009-10 | ||||||
| 01-Aug | Bank A/c | 300,000 | |||||
| 31-Mar | Bal C/d | 300,000 | |||||
| 300,000 | 300,000 | ||||||
| 2010-11 | 2010-11 | ||||||
| 01-Apr | Bal B/d | 300,000 | |||||
| 01-Nov | Bank A/c | 180,000 | |||||
| 31-Mar | Bal C/d | 480,000 | |||||
| 480,000 | 480,000 | ||||||
| 2011-12 | 2011-12 | ||||||
| 01-Apr | Bal B/d | 480,000 | 01-Jul | Provision for Depreciation | 54,300 | ||
| 01-Jul | Bank A/c | 200,000 | 01-Jul | Bank A/c | 168,000 | ||
| 01-Jul | Loss on Sale | 77,700 | |||||
| 31-Mar | Bal C/d | 380,000 | |||||
| 680,000 | 680,000 | ||||||
| Provsion for Depreciation A/c | |||||||
| Cr. | |||||||
| Date | Particulars | Amt | Date | Particulars | Amt | ||
| (Rs) | (Rs) | ||||||
| 2009-10 | 2009-10 | ||||||
| 1-Apr | Bal B/d | - | |||||
| 31-Mar | Bal C/d | 20,000 | 31-Mar | Depreciation A/c | 20,000 | ||
| 20,000 | 20,000 | ||||||
| 2010-11 | 2010-11 | ||||||
| 01-Apr | Bal B/d | 20,000 | |||||
| 31-Mar | Depreciation A/c | 35,500 | |||||
| 31-Mar | Bal C/d | 55,500 | |||||
| 55,500 | 55,500 | ||||||
| 2011-12 | 2011-12 | ||||||
| 01-Apr | Bal B/d | 55,500 | |||||
| 01-Jul | Plant and Machinery A/c | 54,300 | 31-Mar | Depreciation A/c | 38,550 | ||
| 31-Mar | Bal C/d | 39,750 | |||||
| 94,050 | 94,050 | ||||||
| Calculation of Depreciation for Machines purchased | |||
| 01-08-09 | Cost of machinery purchased | 300,000 | |
| Less : Dep @ 10% on WDV method for 8 months | 3,00,000 x 10% x 8/12 | 20,000 | |
| WDV at 31-03-2010 | 280,000 | ||
| 01-04-10 | Opening Balance | 280,000 | |
| 01-11-10 | Add: Machinery Purchased | 180,000 | |
| Less : Depreciation on New machine @ 10% for 5 months | 1,80,000 x 10% x 5/12 | 7,500 | |
| Less : Dep @ 10% as per WDV method on remaining machines | 2,80,000 x 10% | 28,000 | |
| WDV at 31-03-11 | 424,500 | ||
| 01-04-11 | Opening Balance | 424,500 | |
| 01-07-11 | Less : Depreiciation on machine purchased on 01-08-09 for 3 months | 2,52,000 x 10% x 3/12 | 6,300 |
| 01-07-11 | Less : WDV of machine sold after charging current year's depreciation | 245,700 | |
| 01-07-11 | 200,000 | ||
| Less : Depreciation on New machinery | 2,00,000 x 10% x 9/12 | 15,000 | |
| Less : Dep @ 10% on WDV | (4,24,500 - 2,52,000) x 10% | 17,250 | |
| WDV at 31-03-10 | 155,250 | ||
| Calculation of Profit / (Loss) on sale | ||
| Particulars | Purchased on 01-08-09 | |
| Cost on Machine | 300,000 | |
| Less : Depreciation for years | ||
| 2009-10 | (20,000) | |
| 2010-11 | (28,000) | |
| 2011-12 | (6,300) | |
| WDV on the date of sale | 245,700 | |
| Sale Price | 168,000 | |
| Profit / (Loss) on sale | (77,700) | |
Regards