Solve the 11th question

Solve the 11th question Show how Machm'ew Account would appear in the books of the company. It being given was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2016? [Depreciation 2013 = e 2,750; 2014 = 5,500; and 2015 = 5,000; Loss on sale of Machinery—e 5,250; on 1st April, 2016: Balance e 38,500, i.e., in Machinery 1 (2/3)—« 14,500; Machinery II—e 15,500 and Machinery Ill—e 8,500.] Nhl. on 1st July, 2012, A co. Ltd. purchases second-hand machinery for 20,000 and spends 3,000 on reconditioning and installing it. On 1st January, 2013, the firm purchases new machinery worth 12,000. On 30th June, 2014, the machinery purchased on 1st January, 2013, was sold for 8,000 and on 1st July, 2014, a fresh plant was installed. Payment for this plant was to be made as follows: 1st July, 2014 30th June, 2015 30th June, 2016 5,000 6,000 5,500 Payments in 2015 and 2016 include interest of 1,000 and 500 respectively. The company writes off 10% p.a. on the original cost. The accounts are closed every year on 31st March. Show the Machinery Account for the year ended 31st March, 2015. [Balance in Machinery A/c—e 30,550.] st of Plant purchased on 1st July, 2014 = 5,000 + 6,000 — 1,000 interest) + [Hint: (R 5,500 — 500 for interest) = 15,000. Interest expenses are of revenue nature and not of capital nature and hence not debited to Machinery Account.] 12. A firm purchased a second-hand machine on 1st April, 2011 and paid for it. It spent on its overhauling and installation 20,000. On 1st October, 2011, another machine costing 80,000 was purchased. On 1st October, 2013 the machine purc 1 Anril.

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