Question 25:
A company purchased a machinery for ₹50,000 on 1st October, 2022. Another machinery costing ₹10,000 was purchased on 1st December, 2023. On 31st March, 2025, the machinery purchased in 2022 was sold at a loss of ₹5,000. The company charges depreciation @ 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare the Machinery Account for 3 years.
Answer:
|
Machinery Account |
|||||||||||||
|
Dr. |
|
Cr. |
|||||||||||
|
Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
||||||
|
2021 |
|
|
|
2022 |
|
|
|
||||||
|
Oct.01 |
Bank (I) |
|
50,000 |
Mar.31 |
Depreciation (for 6 Months) |
|
3,750 |
||||||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
46,250 |
||||||
|
|
|
|
50,000 |
|
|
|
50,000 |
||||||
|
2022 |
|
|
|
2023 |
|
|
|
||||||
|
Apr.01 |
Balance b/d (I) |
|
46,250 |
Mar.31 |
Depreciation |
|
|
||||||
|
Dec.01 |
Bank (II) |
|
10,000 |
|
I |
6,938 |
|
|
|||||
|
|
|
|
|
|
II |
500 |
|
7,438 |
|||||
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|
|
|
|
Mar.31 |
Balance c/d |
|
|
||||||
|
|
|
|
|
|
I |
39,312 |
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|
|||||
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|
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|
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|
II |
9,500 |
|
48,812 |
|||||
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|
|
|
56,250 |
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|
56,250 |
||||||
|
2023 |
|
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|
2025 |
|
|
|
||||||
|
Apr.01 |
Balance b/d |
|
|
Mar.31 |
Depreciation |
|
|
||||||
|
|
I |
39,312 |
|
|
|
I |
5,897 |
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|
||||
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|
II |
9,500 |
|
48,812 |
|
II |
1,425 |
|
7,322 |
||||
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|
|
|
|
Mar.31 |
Bank (I) |
|
28,415 |
||||||
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|
|
|
|
Mar.31 |
Profit and Loss (Loss) |
|
5,000 |
||||||
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|
|
|
|
Mar.31 |
Balance c/d (II) |
|
8,075 |
||||||
|
|
|
|
48,812 |
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|
|
48,812 |
||||||
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Working Note
(1) Calculation of profit or loss on sale of machine:
|
Particulars |
(₹) |
|
Book Value of Machine I on Apr. 01, 2023 |
39,312 |
|
Less: Depreciation (39,312 × 15%) |
5,897 |
|
Book Value of Machine I on Mar. 31, 2025 |
33,415 |
|
Less: Sale Value |
(28,415) |
|
Loss on Sale of Machine I |
5,000 |
Question 26:
On 1st October, 2022, Rahul traders purchased a machine for ₹25,000 and
spent ₹5,000 for carriage and freight; ₹1,000 for brokerage of the
middle-man, ₹4,000 for installation. The machine is depreciated @ 10%
p.a. on written down value basis. On 31st March, 2025 the machine was sold to Deepa for ₹30,500 and ₹500 was paid as
commission to broker through whom the sales was effected.
Find out the profit or loss on sale of machine if accounts are closed on 31st
March, every year.
Answer:
Cost of Machine = 25,000+5,000+1,000+4,000 = 35,000
(1)
Calculation of Profit or Loss on sale of Machine:
|
Particulars |
|
(₹) |
|
Cost of
Machine On 1st October, 2022 |
|
35,000 |
|
Less:
Depreciation |
|
|
|
(1st October,
2022 to 31.3.23) for 6 Month |
1,750 |
|
|
(1st April, 2023
to 31.3.24) for whole year |
3,325 |
|
|
(1st April, 2024 to 31.3.25) for whole year |
2,993 |
8,068 |
|
Book Value of Machine On 31.3.25 |
|
26,932 |
|
Less: Sale Value (30,500 – 500) |
|
(30,000) |
|
Profit on Sale |
|
3,068 |
Question 27:
On 1st April,
2022, machinery was purchased for ₹20,000. On 1st October, 2023 another
machine was purchased for ₹10,000 and on 1st April, 2024, one more
machine was purchased for ₹5,000. The firm depreciates its machinery @
10% p.a. on the Diminishing Balance Method.
What is the amount of Depreciation for the years ended 31st March, 2023, 2024
and 2025? What will be the balance in Machinery Account as on 31st March, 2025?
Answer:
I. Calculation of Depreciation
from April 01, 2022 to March 31, 2025
Depreciation Rate: 10% p.a. on Diminishing Balance Method
|
Year |
Machinery |
Date of Purchase |
Value |
No. of Months |
Amt. of Dep. |
Total Dep. |
|
March 31, 2023 |
M1 |
April 01, 2022 |
20,000 |
12 |
2,000 |
2,000 |
|
March 31, 2024 |
M1 |
April 01, 2022 |
18,000 (20,000 – 2,000) |
12 |
1,800 |
|
|
|
M2 |
Oct. 01,2023 |
10,000 |
6 |
500 |
2,300 |
|
March 31, 2025 |
M1 |
April 01, 2022 |
16,200 (18,000 – 1,800) |
12 |
1,620 |
|
|
|
M2 |
Oct. 01,2023 |
9,500 |
12 |
950 |
|
|
|
M3 |
April 01, 2024 |
5,000 |
12 |
500 |
3,070 |
II. Balance in Machinery Account as on March 31, 2025 will be Rs. 27,630
Working Notes: Preparation of Machinery Account
|
Machinery Account |
|||||||||||||
|
Dr. |
Cr. |
||||||||||||
|
Date |
Particulars |
(₹) |
Date |
Particulars |
(₹) |
||||||||
|
2022 |
|
|
2023 |
|
|
||||||||
|
April 01 |
Bank A/c (M1) |
20,000 |
March 31 |
Depreciation A/c (M1) |
2,000 |
||||||||
|
|
|
|
March 31 |
Balance c/d (M1) |
18,000 |
||||||||
|
|
|
20,000 |
|
|
20,000 |
||||||||
|
2023 |
|
|
2024 |
|
|
||||||||
|
April 01 |
Balance b/d (M1) |
18,000 |
March 31 |
Depreciation A/c |
|
||||||||
|
Oct. 01 |
Bank A/c (M2) |
10,000 |
|
M1(10,000×10×6/100/12) |
*1,800 |
|
|||||||
|
|
|
|
|
M2 |
500 |
2,300 |
|||||||
|
|
|
|
March 31 |
Balance c/d |
|
||||||||
|
|
|
|
|
M1 |
16,200 |
|
|||||||
|
|
|
|
|
M2 |
9,500 |
25,700 |
|||||||
|
|
|
28,000 |
|
|
28,000 |
||||||||
|
2024 |
|
|
2025 |
|
|
||||||||
|
April 01 |
Balance b/d |
|
March 31 |
Depreciation A/c |
|
||||||||
|
|
M1 |
16,200 |
|
|
M1 |
1,620 |
|
||||||
|
|
M2 |
9,500 |
25,700 |
|
M2 |
950 |
|
||||||
|
April 01 |
Bank A/c (M3) |
5,000 |
|
M3 |
500 |
3,070 |
|||||||
|
|
|
|
March 31 |
Balance c/d |
|
||||||||
|
|
|
|
|
M1 |
14,580 |
|
|||||||
|
|
|
|
|
M2 |
8,550 |
|
|||||||
|
|
|
|
|
M3 |
4,500 |
27,630 |
|||||||
|
|
|
30,700 |
|
|
30,700 |
||||||||
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Note: Since the question does not specify to
prepare the Machinery Account, thus, it is optional to prepare this account.
Question 28:
Gurman & Co. purchased machinery for ₹40,000 on 1st October, 2022. Depreciation is provided @ 10% p.a. on the Diminishing Balance. On 31st January, 2025, one-fourth of the machinery was found unsuitable and disposed off for ₹5,600. On the same date new machinery at a cost of ₹15,000 was purchased. Write up the Machinery account for the years ended 31st March, 2023, 2024 and 2025. Accounts are closed on 31st March each year.
Answer:
|
Machinery Account |
||||||||||||
|
Dr. |
Cr. |
|||||||||||
|
Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
|||||
|
2022 |
|
|
|
2023 |
|
|
|
|||||
|
Oct. 01 |
Bank |
|
|
Mar.31 |
Depreciation |
|
|
|||||
|
|
I (3/4) |
30,000 |
|
|
|
I (3/4) for 6 months |
1,500 |
|
|
|||
|
|
I(1/4) |
10,000 |
|
40,000 |
|
I (1/4) for 6 months |
500 |
|
2,000 |
|||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
I (3/4) |
28,500 |
|
|
||||
|
|
|
|
|
|
I (1/4) |
9,500 |
|
38,000 |
||||
|
|
|
|
40,000 |
|
|
|
40,000 |
|||||
|
2023 |
|
|
|
2024 |
|
|
|
|||||
|
Apr.01 |
Balance b/d |
|
|
Mar.31 |
Depreciation |
|
|
|||||
|
|
I (3/4) |
28,500 |
|
|
|
I (3/4) |
2,850 |
|
|
|||
|
|
I (1/4) |
9,500 |
|
38,000 |
|
I (1/4) |
950 |
|
3,800 |
|||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
I (3/4) |
25,650 |
|
|
||||
|
|
|
|
|
|
I (1/4) |
8,550 |
|
34,200 |
||||
|
|
|
|
38,000 |
|
|
|
|
38,000 |
||||
|
2024 |
|
|
|
2025 |
|
|
|
|||||
|
Apr.01 |
Balance b/d |
|
|
Jan.31 |
Depreciation I (1/4)(for 10 Months) |
|
713 |
|||||
|
|
I (3/4) |
25,650 |
|
|
Jan.31 |
Bank I(1/4) |
|
5,600 |
||||
|
2023 |
I (1/4) |
8,550 |
|
34,200 |
|
Profit and Loss (Loss) |
|
2,237 |
||||
|
Jan.31 |
Bank (II) |
|
15,000 |
2025 Mar.31 |
Depreciation |
|
|
|||||
|
|
|
|
|
|
I (3/4) |
2,565 |
|
|
||||
|
|
|
|
|
|
II (for 2 months) |
250 |
|
2,815 |
||||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
I (3/4) |
23,085 |
|
|
||||
|
|
|
|
|
|
II |
14,750 |
|
37,835 |
||||
|
|
|
|
49,200 |
|
|
|
|
49,200 |
||||
|
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|
|
|
|
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|
|||||
|
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|
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|
|
|
|
|
|
|
|
Working Note
(1) Calculation of Profit or Loss on Sale of Machine I (1/4):
|
Particulars |
(₹) |
|
Book Value of Machine (I)(1/4) on Apr. 01, 2024 |
8,550 |
|
Less: Depreciation for 10 Months |
(713) |
|
Book Value of Machine (I)(1/4) on Jan. 31 2025 |
7,837 |
|
Less: Sale Value |
(5,600) |
|
Loss on Sale of Machine I(1/4) |
2,237 |
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Ts Grewal Solution 2025-2026
Class 11th