X Ltd. has imported a machine on Oct 1, 2011 for Rs 1,28,000, paid custom duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on April 1, 2012. On Oct 1, 2013 a portion of the imported machinery (value one third) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation to be calculated at 20% p.a. on original cost basis.
Prepare the Machinery Account for the first three years ending 31st March 2014.
Dear Student,
Regards
| Machinery Account | ||||||
| Dr. | Cr. | |||||
| Date | Particulars | Amount (Rs) |
Date | Particulars | Amount (Rs) |
|
| 2011 | 2012 | |||||
| Oct.1 | Bank A/c | 2,40,000 | Mar. 31 | Depreciation A/c | ||
| M1 80,000 | M1 8,000 | |||||
| M2 1,60,000 | M2 16,000 | 24,000 | ||||
| Balance c/d | ||||||
| M1 72,000 | ||||||
| M2 1,44,000 | 2,16,000 | |||||
| 2,40,000 | 2,40,000 | |||||
| 2012 | 2013 | |||||
| Apr. 01 | Balance b/d | Mar.31 | Depreciation A/c | |||
| M1 72,000 | M1 16,000 | |||||
| M2 1,44,000 | 2,16,000 | M2 32,000 | ||||
| Apr.01 | Bank A/c (M3) | 80,000 | M3 16,000 | 64,000 | ||
| Mar.31 | Balance c/d | |||||
| M1 56,000 | ||||||
| M2 1,12,000 | ||||||
| M3 64,000 | 2,32,000 | |||||
| 2,96,000 | 2,96,000 | |||||
| 2013 | 2013 | |||||
| Apr. 01 | Balance b/d | Oct. 01 | Depreciation A/c (on M1 for 6 months) | 8,000 | ||
| M1 56,000 | Bank A/c (Sale of M1) | 27,840 | ||||
| M2 1,12,000 | Profit and Loss A/c (Loss on Sale) | 20,160 | ||||
| M3 64,000 | 2,32,000 | 2014 | ||||
| Mar.31 | Depreciation on- | |||||
| Oct.01 | Bank A/c (M4) | 40,000 | M2 32,000 | |||
| M3 16,000 | ||||||
| M4 4,000 | 52,000 | |||||
| Mar.31 | Balance c/d | |||||
| M2 80,000 | ||||||
| M3 48,000 | ||||||
| M4 36,000 | 1,64,000 | |||||
| 2,72,000 | 2,72,000 | |||||
| Particulars | Amount |
| Value of M1 as on Apr. 01, 2013 | 56,000 |
| Less: Depreciation for 6 months | 8,000 |
| Value of M1 as on Oct. 01, 2013 | 48,000 |
| Less: Sale Value | 27,840 |
| Loss on Sale | 20,160 |
Regards