Question 29:
A company purchased on 1st July, 2020 machinery costing `30,000. It further
purchased machinery on 1st January, 2021 costing `20,000 and on 1st October,
2021 costing `10,000. On 1st April, 2022, one-third of the machinery installed
on 1st July, 2020 became obsolete and was sold for `3,000. The company follows
financial year as accounting year.
Show how the Machinery Account would appear in the books of company if
depreciation is charged @ 10% p.a. on Written Down
Value Method.
Answer:
|
Machinery Account |
|||||||||||||
|
Dr. |
|
Cr. |
|||||||||||
|
Date |
Particulars |
J.F. |
(Rs) |
Date |
Particulars |
J.F. |
(Rs) |
||||||
|
2020 |
|
|
|
2021 |
|
|
|
||||||
|
July 01 |
Bank |
|
|
Mar.31 |
Depreciation |
|
|
||||||
|
|
I(2/3) |
20,000 |
|
|
|
I(2/3) |
1,500 |
|
|
||||
|
2021 |
I(1/3) |
10,000 |
|
30,000 |
|
I(1/3) |
750 |
|
|
||||
|
Jan.01 |
Bank (II) |
|
20,000 |
|
II |
500 |
|
2,750 |
|||||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||||||
|
|
|
|
|
|
I(2/3) |
18,500 |
|
|
|||||
|
|
|
|
|
|
I(1/3) |
9,250 |
|
|
|||||
|
|
|
|
|
|
II |
19,500 |
|
47,250 |
|||||
|
|
|
|
50,000 |
|
|
|
|
50,000 |
|||||
|
2021 |
|
|
|
2022 |
|
|
|
||||||
|
Apr 01 |
Balance b/d |
|
|
Mar 31 |
Depreciation |
|
|
||||||
|
|
I(2/3) |
18,500 |
|
|
|
I(2/3) |
1,850 |
|
|
||||
|
|
I(1/3) |
9,250 |
|
|
|
I(1/3) |
925 |
|
|
||||
|
|
II |
19,500 |
|
47,250 |
|
II |
1,950 |
|
|
||||
|
Oct 01 |
Bank (III) |
|
10,000 |
|
III |
500 |
|
5,225 |
|||||
|
|
|
|
|
Mar 31 |
Balance c/d |
|
|
||||||
|
|
|
|
|
|
I(2/3) |
16,650 |
|
|
|||||
|
|
|
|
|
|
I(1/3) |
8,325 |
|
|
|||||
|
|
|
|
|
|
II |
17,550 |
|
|
|||||
|
|
|
|
|
|
III |
9,500 |
|
52,025 |
|||||
|
|
|
|
57,250 |
|
|
|
57,250 |
||||||
|
2022 |
|
|
|
2022 |
|
|
|
||||||
|
Apr.01 |
Balance b/d |
|
|
Apr.01 |
Bank (I)(1/3) |
|
3,000 |
||||||
|
|
I(2/3) |
16,650 |
|
|
Apr.01 |
Profit and Loss (Loss) |
|
5,325 |
|||||
|
|
I(1/3) |
8,325 |
|
|
Mar.31, |
Depreciation |
|
|
|||||
|
|
II |
17,550 |
|
|
2023 |
I(2/3) |
1,665 |
|
|
||||
|
|
III |
9,500 |
|
52,025 |
|
II |
1,755 |
|
|
||||
|
|
|
|
|
|
III |
950 |
|
4,370 |
|||||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||||||
|
|
|
|
|
|
I(2/3) |
14,985 |
|
|
|||||
|
|
|
|
|
|
II |
15,795 |
|
|
|||||
|
|
|
|
|
|
III |
8,550 |
|
39,330 |
|||||
|
|
|
|
52,025 |
|
|
|
|
52,025 |
|||||
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Working Note:
(1) Calculation of Profit or Loss on Sale of Plant I(1/3):
|
Particulars |
(Rs) |
|
Book Value of Plant I (1/3) as on Apr 01, 2022 |
8,325 |
|
Less: Sale Value |
(3,000) |
|
Loss on Sale |
5,325 |
Question 30:
Sagar
purchased the following machines:
On 1st April, 2022 - ₹40,000
On 1st October, 2022 - ₹20,000
On 1st January, 2023 - ₹10,000
Depreciation was provided @ 10% p.a. under Written
down Value Method (Diminishing Balance Method). The machine purchased on 1st
October, 2022 was sold on 30th June, 2023 at ₹15,000.
Show necessary ledger accounts in the books of Sagar Ltd. if accounts are closed on 31st March
every year.
Answer:
|
Books
of Sagar Machinery Account |
|
|||||||||||
|
Dr. |
|
Cr. |
||||||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
|||||
|
|
|
|
|
|
||||||||
|
1/4/22 |
Bank A/c |
|
40,000 |
31/3/23 |
Depreciation A/c |
5,250 |
||||||
|
1/10/22 |
Bank A/c |
|
20,000 |
M1- 4,000 |
||||||||
|
1/1/23 |
Bank A/c |
|
10,000 |
M2- 1,000 |
||||||||
|
M3-
250 |
|
|||||||||||
|
31/3/23 |
Balance c/d |
|||||||||||
|
M1- 36,000 |
||||||||||||
|
M2- 19,000 |
||||||||||||
|
|
|
|
M3-
9,750 |
|
64,750 |
|||||||
|
|
|
|
7,00,000 |
|
|
|
7,00,000 |
|||||
|
|
|
|
|
|
|
|||||||
|
01/04/23 |
Balance b/d |
64,750 |
30/06/23 |
Depreciation A/c |
475 |
|||||||
|
M1-36,000 |
30/06/23 |
Bank A/c |
15,000 |
|||||||||
|
M2-19,000 |
30/06/23 |
P&L A/c |
3,525 |
|||||||||
|
M3-
9,750 |
31/3/24 |
Depreciation A/c |
4,575 |
|||||||||
|
M1- 3,600 |
||||||||||||
|
M3- 975 |
||||||||||||
|
31/3/24 |
Balance c/d |
41,175 |
||||||||||
|
M1- 32,400 |
||||||||||||
|
M3- 8,775 |
||||||||||||
|
64,750 |
64,750 |
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||
Question
31:
Following balances appear in the books of M/s. Amrit as on 1st April, 2023:
|
|
|
` |
|
2023 |
|
|
|
1st April |
Machinery
A/c |
60,000 |
|
|
Provision
for Depreciation A/c |
36,000 |
On 1st
April, 2023, they decided to dispose off a machinery
for `8,400 which was purchased on 1st April, 2019 for `16,000.
You are required to prepare the Machinery Account, Provision for Depreciation
Account and Machinery Disposal Account for the year ended 31st March, 2025.
Depreciation was charged at 10% p.a on Cost following
Straight Line Method.
Answer:
|
Books of M/s. Amrit Machinery Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2023 |
|
|
|
2023 |
|
|
|
||
|
April 01 |
Balance b/d (44,000 + 16,000) |
|
60,000 |
April 01 |
Machinery Disposal |
|
16,000 |
||
|
|
|
|
|
2025 |
|
|
|
||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
44,000 |
||
|
|
|
|
60,000 |
|
|
|
60,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Depreciation Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2023 |
|
|
|
2023 |
|
|
|
||
|
April 01 |
Machinery Disposal (4 years) |
|
6,400 |
April 01 |
Balance b/d |
|
36,000 |
||
|
2025 |
|
|
|
2025 |
|
|
|
||
|
Mar.31 |
Balance c/d |
|
34,000 |
Mar.31 |
Depreciation (on Machine costing Rs 44,000) |
|
4,400 |
||
|
|
|
|
40,400 |
|
|
|
40,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Machinery Disposal Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2023 |
|
|
|
2023 |
|
|
|
||
|
April 01 |
Machinery |
|
16,000 |
April 01 |
Provision for Depreciation |
|
6,400 |
||
|
|
|
|
|
2025 |
|
|
|
||
|
|
|
|
|
Mar.31 |
Bank (Sale) |
|
8,400 |
||
|
|
|
|
|
|
Profit and Loss (Loss) |
|
1,200 |
||
|
|
|
|
16,000 |
|
|
|
16,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Working Note
1. Calculation of profit or loss on
Machine Sold:
|
Particulars |
(`) |
|
Original Cost of Machine Sold on April 01, 2019 |
16,000 |
|
Less: Accumulated Depreciation on Machine Sold (1,600 × 4) |
(6,400) |
|
Book Value of April 01, 2023 |
9,600 |
|
Less: Sale Value |
(8,400) |
|
Loss on Sale |
1,200 |
Question
32:
On 1st April, 2014, Veeru
Ltd. purchased a machinery for `2,50,000
and spent `50,0000 on its installation. On 1st July, 2016,
1/3rd of machinery purchased on 1st April, 2014 was sold for `15,000
and a new machinery at the cost of `2,00,000
was purchased on the same date. The company has adopted the method of providing
depreciation 15% p.a. on Straight Line Method. Show the Machinery Account,
Provision for Depreciation Account and Machinery Disposal Account for three
years ended on 31st March, 2015 to 31st March, 2017. (Delhi)
Answer
|
Machinery Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2014 |
|
|
|
2015 |
|
|
|
||
|
April 01 |
Bank A/c (M1) |
|
2,50,000 |
Mar.31 |
Balance C/d (M1) |
|
3,00,000 |
||
|
April 01 |
Bank A/c (M1) |
|
50,000 |
|
|
|
|
||
|
|
|
|
3.00.000 |
3.00.000 |
|||||
|
2015 |
|
|
|
2016 |
|
|
|
||
|
April 01 |
Balance B/d (M1) |
|
3,00,000 |
Mar.31 |
Balance C/d (M1) |
|
3,00,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
3.00.000 |
|
|
|
3.00.000 |
||
|
2016 |
|
|
|
2016 |
|
|
|
||
|
April 31 |
Balance B/d (M1) |
|
3.00.000 |
July 01 |
Machinery
Disposal A/c (M1) |
|
1,00,000 |
||
|
2017 July 01 |
Bank A/c (M2) |
2,00,000 |
2017 |
|
|
|
|||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||
|
|
|
|
|
|
M1 – 2,00,000 |
|
|
||
|
|
|
|
|
|
M2 – 2,00,000 |
|
4,00,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
5,00,000 |
|
|
|
5,00,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
P
|
|
Provision for Depreciation on
Machinery Account |
|
|||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2015 |
|
|
|
2015 |
|
|
|
||
|
Mar.31 |
Balance c/d (M1) |
|
45,000 |
Mar.31 |
Depreciation A/c (M1) |
|
45,000 |
||
|
|
|
|
45,000 |
|
|
|
45,000 |
||
|
|
|
|
|
2015 |
|
|
|
||
|
|
|
|
|
April.01 |
Balance c/d (M1) |
|
45,000 |
||
|
2016 |
|
|
|
2016 |
|
|
|
||
|
Mar.31 |
Balance c/d (M1) |
|
90,000 |
Mar.31 |
Depreciation A/c (M1) |
|
45,000 |
||
|
|
|
|
90,000 |
|
|
|
90,000 |
||
|
2016 |
|
|
|
2016 |
|
|
|
||
|
July 01 |
Machinery
Disposal A/c (M1) |
|
33,750 |
April.01 |
Balance c/d (M1) |
|
90,000 |
||
|
Mar.31 |
Balance c/d |
|
|
2016 |
|
|
|
||
|
|
M1- 90,000 M1- 22,500 |
|
1,12,500 |
July.01 |
Depreciation A/c (On 1/3 Part of M1) |
|
3,750 |
||
|
|
|
|
|
Mar.31 |
Depreciation A/c (On 2/3 of M1) 30,000 |
|
|
||
|
|
|
|
|
|
M2- 22,500 |
|
52,500 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
1,46,250 |
|
|
|
1,46,250 |
||
|
|
|
|
|
|
|
|
|
||
M
|
|
Machinery Disposal Account |
|
|||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2016 |
|
|
|
2016 |
|
|
|
||
|
July 01 |
Machinery A/c (M1) |
|
1,00,000 |
July 01 |
Provision for Depreciation on Machinery A/c (M1) |
|
33,750 |
||
|
|
|
|
|
July 01 |
Bank A/c (Sale) |
|
15,000 |
||
|
|
|
|
|
July 01 |
Profit and loss A/c (Loss) |
|
51,250 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
1,00,000 |
|
|
|
1,00,000 |
||
|
|
|
|
|
|
|
|
|
||
Click below for more Questions
Ts Grewal Solution 2025-2026
Class 11th