Question
33:
Ashoka & Co. whose books are
closed on 31st March, purchased a machinery for ₹1,50,000
on 1st April, 2022, Additional machinery was acquired for ₹50,000 on 1st
October, 2022. Certain machinery which was purchased for ₹50,000 on 1st
October, 2022 was sold for ₹40,000 on 30th September, 2024.
Prepare the Machinery Account and Accumulated Depreciation Account for all the
years up to the year ended 31st March, 2025. Depreciation is charged @ 10% p.a.
on Straight Line Method. Also, show the Machinery Disposal Account.
Answer:
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Books of Ashoka & Co. Machinery Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2022 |
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2023 |
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Apr.01 |
Bank (I) |
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1,50,000 |
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Oct 01 |
Bank (II) |
|
50,000 |
Mar.31 |
Balance c/d |
|
2,00,000 |
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2,00,000 |
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2,00,000 |
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2023 |
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2024 |
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Apr.01 |
Balance b/d |
|
2,00,000 |
Mar.31 |
Balance c/d |
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2,00,000 |
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2,00,000 |
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2,00,000 |
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2024 |
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2024 |
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Apr.01 |
Balance b/d |
|
2,00,000 |
Sep 30 |
Machinery Disposal A/c |
|
50,000 |
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2025 Mar.31, |
Balance c/d |
|
1,50,000 |
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2,00,000 |
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2,00,000 |
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Accumulated Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2023 |
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2022 |
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Mar.31 |
Balance c/d |
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Mar. 31 |
Depreciation |
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I |
15,000 |
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I |
15,000 |
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II |
2,500 |
|
17,500 |
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II (for 6 months) |
2,500 |
|
17,500 |
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17,500 |
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|
17,500 |
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2024 |
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2023 |
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Mar.31 |
Balance c/d |
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Apr. 01 |
Balance b/d |
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I |
30,000 |
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I |
15,000 |
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II |
7,500 |
|
37,500 |
2024 |
II |
2,500 |
|
17,500 |
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Mar. 31 |
Depreciation |
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I |
15,000 |
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II |
5,000 |
|
20,000 |
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37,500 |
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37,500 |
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2024 |
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2024 |
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Sep 30 |
Machinery disposal (II) |
|
10,000 |
Apr. 01 |
Balance b/d |
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Mar.31, 2025 |
Balance c/d (I) |
|
45,000 |
|
I |
30,000 |
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II |
7,500 |
|
37,500 |
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2024 Sep 30 |
Depreciation (II) |
|
2,500 |
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2025 Mar. 31 |
Depreciation (I) |
|
15,000 |
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55,000 |
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|
55,000 |
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Machinery Disposal Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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Oct 01, 2024 |
Machinery A/c |
|
50,000 |
Oct 01, 2024 |
Accumulated Depreciation A/c |
|
10,000 |
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Oct 01, 2024 |
Bank A/c |
|
40,000 |
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50,000 |
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50,000 |
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Working note
1. Calculation of Profit or Loss on sale of Machine II
|
Particulars |
|
|
Original Cost on 1.4.2022 |
50,000 |
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Less: Accumulated Depreciation |
(10,000) |
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Book Value on Oct 01, 2024 |
40,000 |
|
Less: Sale Value |
(40,000) |
|
Profit / Loss |
NIL |
Question 34:
From the books
of Harish Traders following information as on 1st April, 2024 is extracted:
Plant and Machinery Account
|
₹25,00,000
|
Provision for Depreciation Account
|
₹5,80,000
|
Depreciation is
charged on the plant at 20% p.a. by the Diminishing Balance Method. A piece of
machinery purchased on 1st April, 2022 for ₹5,00,000 was sold on 1st
October, 2024 for ₹3,00,000. Prepare the Plant and Machinery Account and
Provision for Depreciation Account for the year ended 31st March, 2025. Also,
prepare Machinery Disposal Account.
Answer:
|
Books of Harish Traders Machinery
Account |
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|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
|
2024 |
|
|
|
2024 |
|
|
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Apr.01 |
Balance b/d |
|
25,00,000 |
Oct 01 |
Machinery Disposal |
|
5,00,000 |
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|
2025 Mar.31, |
Balance c/d |
|
20,00,000 |
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25,00,000 |
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25,00,000 |
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Accumulated Depreciation Account |
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Dr. |
|
Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
|
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2024 |
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|
2024 |
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Oct. 01 |
Machinery disposal |
2,12,000 |
Apr.01 |
Balance b/d |
5,80,000 |
|
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2025 |
Oct. 01 |
Depreciation A/c |
|
32,000 |
|
||||||||||||||||||
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Mar.31 |
Balance c/d |
|
7,20,000 |
|
(for 6 months sold asset) |
|
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2025 |
Depreciation A/c |
3,20,000 |
|
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Mar.31 |
|
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9,32,000 |
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9,32,000 |
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Machinery Disposal Account |
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Dr. |
|
Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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|
2024 |
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|
2024 |
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Oct. 01 |
Machinery A/c |
|
5,00,000 |
Oct. 01 |
Accumulated Depreciation A/c |
|
2,12,000 |
||||||||||||||||
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Oct. 01 |
Profit and loss A/c (Profit) |
|
12,000 |
Oct. 01 |
Bank A/c |
|
3,00,000 |
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|
5,12,000 |
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5,12,000 |
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Working note
1. Calculation of Profit or Loss on sale of Machine
|
Particulars |
(₹) |
|
Original Cost April 01, 2022 |
5,00,000 |
|
Less: Accumulated Depreciation |
|
|
(2022-2023) 1,00,000 |
|
|
(2023-2024) 80,000 |
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(1.4.2024-1.10.2025 [6 month]) 32,000 |
2,12,000 |
|
Book Value on 1.10.2025 |
2,88,000 |
|
Less: Sale Value |
3,00,000 |
|
Profit on sale of machine |
12,000 |
Question 35:
On 1st April, 2022, Jai purchased machinery for
₹5,00,000 and spent ₹1,00,000 on its
installation. On 1st October, 2024, 1/3rd of machinery purchased on 1st April,
2022 was sold for 70,000 and a new machinery at the cost of ₹4,00,000 was purchased on the same date. The company has
adopted the written down value method of providing depreciation @ 10% p.a. on
the machinery.
You are required to show: (i)
Machinery Account; (i) Machinery Disposal Account and
(ii) Provision for Depreciation Account for the period of three accounting
years ended 31st March, 2025.
Answer:
|
Books
of Sagar Machinery Account |
|
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|
Dr. |
|
Cr. |
||||||||||
|
Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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1/4/22 |
Bank A/c (Purchase) |
|
5,00,000 |
31/3/23 |
Balance c/d |
6,00,000 |
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1/4/22 |
Bank A/c (installation) |
|
1,00,000 |
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6,00,000 |
6,00,000 |
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01/04/23 |
Balance b/d |
6,00,000 |
31/3/23 |
Balance c/d |
6,00,000 |
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5,40,000 |
5,40,000 |
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01/04/24 |
Balance b/d |
6,00,000 |
1/10/24 |
Machinery Disposal A/c |
2,00,000 |
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1/10/24 |
Bank A/c (Purchase) |
4,00,000 |
31/3/24 |
Balance c/d |
8,00,000 |
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10,00,000 |
10,00,000 |
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Provision for Depreciation Account |
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|
Dr. |
|
Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
|||||
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31/3/23 |
Balance c/d |
|
60,000 |
31/3/23 |
Depreciation A/c |
|
60,000 |
|||||
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60,000 |
60,000 |
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31/3/24 |
Balance c/d |
1,14,000 |
1/4/23 |
Balance c/d |
|
60,000 |
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31/3/24 |
Depreciation A/c |
|
54,000 |
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|
1,14,000 |
1,14,000 |
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1/10/24 |
Machinery Disposal |
46,100 |
1/4/24 |
Balance c/d |
1,14,000 |
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31/3/25 |
Balance c/d |
1,28,400 |
1/10/24 |
Depreciation A/c |
8,100 |
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(On1/3machine) |
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31/3/25 |
Depreciation A/c |
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(On2/3Machine) |
32,400 |
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(On New) |
20,000 |
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1,82,600 |
1,82,600 |
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Machinery Disposal Account |
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|
Dr. |
|
Cr. |
||||||||||
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
|||||
|
01/04/24 |
Machinery A/c |
2,00,000 |
01/10/24 |
Provision for Depreciation A/c |
46,100 |
|||||||
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01/10/24 |
Bank A/c (Sale) |
70,000 |
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01/10/24 |
P&L A/c (Loss) |
83,900 |
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|
2,00,000 |
2,00,000 |
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Ts Grewal Solution 2025-2026
Class 11th