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​​Please answer it fast
​​Please answer it fast n ISt Manas ltd.,purchased 10 machines of Rs.30,000 each. On 30th June 2008, one machine out of 10 machines purchased on April 2007, was sold for Rs.24,000 and on -31 St Dec,2009 one moreÄryaC11ine was sold for Rs.22,500. A new machine was purchased on 30th Sept, 2010 for Rs.32,000 . The company has adopted the practice of providing depreciation at 10% p.a. on original cost of machine. 'lhe company closes its books on 3 ISt march every year. You are required to prepare Machinery 8 Accofmt upto 3 March ,2011.

Dear Student
 
Machinery A/c
               Cr. 
Date Particulars    Amt  Date Particulars    Amt 
   (Rs)     (Rs) 
2007-08       2007-08      
               
01-Apr Bank  A/c           300,000 31-Mar Depreciation A/c                30,000
               
               
        31-Mar Bal C/d              270,000
              300,000                  300,000
               
               
2008-09       2008-09      
01-Apr Bal B/d           270,000 30-Jun Depreciation A/c                     750
        30-Jun Bank A/c                24,000
        30-Jun Loss on Sale                  2,250
        31-Mar Depreciation A/c                27,000
               
        31-Mar Bal C/d              216,000
              270,000                  270,000
               
               
2009-10       2009-10      
01-Apr Bal B/d           216,000 31-Dec Depreciation A/c                  2,250
31-Dec Profit on Sale                  750 31-Dec Bank A/c                22,500
               
        31-Mar Depreciation A/c                24,000
               
        31-Mar Bal C/d              168,000
               
              216,750                  216,750
               
2010-11       2010-11      
01-Apr Bal B/d           168,000        
30-Sep Bank A/c             32,000        
               
        31-Mar Depreciation A/c                25,600
               
        31-Mar Bal C/d              174,400
               
              200,000                  200,000
 
Calculation of Depreciation for MAchines purchased
01-04-07 Cost of machinery purchased   300,000
  Less : Dep @ 10% on orignal cost method   30,000
  WDV at 31-03-2008   270,000
       
01-04-08 Opening Balance    270,000
30-06-08 Less : Depreiciation on 1 machine for 3 months  (30,000 x 10% x 3/12) 750
30-06-08 Less : WDV of machine sold after charging current year's depreciation   26,250
  Less : Dep @ 10% on orignal cost method on remaining machines (2,70,000 x 10%) 27,000
  WDV at 31-03-09   216,000
       
01-04-09 Opening Balance    216,000
31-12-09 Less : Depreiciation on 1 machine for 9 months  (30,000 x 10% x 9/12) 2,250
31-12-09 Less : WDV of machine sold after charging current year's depreciation (From note below)   21,750
  Less : Dep @ 10% on orignal cost method on remaining machines (2,40,000 x 10%) 24,000
  WDV at 31-03-10   168,000
       
01-04-10 Opening Balance    168,000
30-09-10 New Machine Purchased   32,000
  Less : Depreciation @ 10% for 6 months on New machine (32,000 x 10% x 6/12) 1,600
  Less : Dep @ 10% on orignal cost method on remaining machines (2,40,000 x 10%) 24,000
  WDV at 31-03-11   174,400
 
Calculation of Profit / (Loss) on sale
Particulars  Purchased on 01-04-07   Purchased on 01-04-07 
Cost on Machine                    30,000              30,000
Less : Depreciation for years    
2007-08                    (3,000)              (3,000)
2008-09                        (750)              (3,000)
2009-10                              -                (2,250)
     
WDV on the date of sale                    26,250              21,750
Sale Price                    24,000              22,500
Profit / (Loss) on sale                    (2,250)                    750


​Regards

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