Question 9:
From the following transactions of a
concern, prepare the Machinery Account for the year ended 31st March, 2025:
|
1st April, 2024 |
: |
Purchased a second-hand machinery for `40,000 |
|
1st April, 2024 |
: |
Spent
`10,000 on repairs for making it serviceable. |
|
30th September, 2024 |
: |
Purchased additional new machinery for `20,000. |
|
31st December, 2024 |
: |
Repairs and renewal of machinery `3,000. |
|
31st March, 2025 |
: |
Depreciate the machinery at 10% p.a. |
Answer:
|
Machinery
Account |
|||||||||||
|
Dr. |
|
Cr. |
|||||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particular |
J.F. |
(`) |
||||
|
2024 |
|
|
|
2025 |
|
|
|
||||
|
Apr.01 |
Bank (M1) |
|
50,000 |
Mar.31 |
Depreciation |
|
|
||||
|
Sept 30 |
Bank (M2) |
|
20,000 |
|
M1 |
5,000 |
|
|
|||
|
|
|
|
|
|
M2 (6 months) |
1,000 |
|
6,000 |
|||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||||
|
|
|
|
|
|
M1 |
45,000 |
|
|
|||
|
|
|
|
|
|
M2 (6 months) |
19,000 |
|
64,000 |
|||
|
|
|
|
70,000 |
|
|
|
70,000 |
||||
|
|
|
|
|
|
|
|
|
||||
Note:
Repair and renewal made on December 31, 2024 will not be recorded in Machinery Account because, this repair was made after putting the Machinery into use.
Question 10:
On 1st April, 2021, Harish traders purchased 5 machines for `60,000 each. On 1st
April, 2023, one of the machine was sold at a loss of `8,000. On 1st July,
2024, second machine was sold at a loss of
`12,500. A new machine was purchased for
`1,00,000 on 1st October, 2024.
Prepare Machinery Account for 4 years, assuming accounts are closed on 31st
March each year and depreciation is charged @ 10% per annum as per Straight
Line Method.
Answer:
|
Dr. |
Machinery A/c |
Cr. |
|||||
|
Date |
Particulars |
(`) |
Date |
Particulars |
(`) |
||
|
2022 |
|
|
2023 |
|
|
||
|
April
01 |
To Cash/Bank A/c (60,000 × 5) |
3,00,000 |
March
31 |
By Depreciation A/c (3,00,000 × 10/100) |
30,000 |
||
|
|
|
|
March
31 |
By balance c/d |
2,70,000 |
||
|
|
|
|
|
|
|
||
|
|
|
3,00,000 |
|
|
3,00,000 |
||
|
2023 |
|
|
2025 |
|
|
||
|
April
01 |
To balance b/d |
2,70,000 |
March
31 |
By Depreciation A/c (3,00,000 × 10/100) |
30,000 |
||
|
|
|
|
March
31 |
By balance c/d |
2,40,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,70,000 |
|
|
2,70,000 |
||
|
2025 |
|
|
2025 |
|
|
||
|
April
01 |
To balance b/d |
2,40,000 |
April
01 |
By Bank A/c (WN1) |
40,000 |
||
|
|
|
|
April
01 |
By Profit & Loss A/c (Loss on sale) |
8,000 |
||
|
|
|
|
2025 |
|
|
||
|
|
|
|
March
31 |
By Depreciation A/c (2,40,000 × 10/100) |
24,000 |
||
|
|
|
|
|
(On remaining machinery) |
|
||
|
|
|
|
March
31 |
By balance c/d |
1,68,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,40,000 |
|
|
2,40,000 |
||
|
2025 |
|
|
2025 |
|
|
||
|
April
01 |
To balance c/d |
1,68,000 |
July
1 |
By Depreciation A/c (6,000 × 3/12) |
1,500 |
||
|
Oct.01 |
To Cash/Bank A/c |
1,00,000 |
July
1 |
By Bank A/c (WN2) |
28,000 |
||
|
|
|
|
July
1 |
By Profit & Loss A/c (Loss on Sale) |
12,500 |
||
|
|
|
|
2026 |
|
|
||
|
|
|
|
March
31 |
By Depreciation A/c (On remaining |
23,000 |
||
|
|
|
|
|
Machinery) |
|
||
|
|
|
|
|
[(1,80,000 × 10/100) + |
|
||
|
|
|
|
|
(1,00,000 × 10/100 × 6/12)] |
|
||
|
|
|
|
March 31 |
By balance c/d |
2,03,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,68,000 |
|
|
2,68,000 |
||
|
|
|
|
|
|
|
||
Working Notes:
|
1) Calculation
of Sale proceeds from Machinery sold on 1st April, 2025 |
||
|
Book Value of the Machine as on 1st April, 2025 |
= |
(Total opening balance of Machinery on this date/5) |
|
|
= |
`(2,40,000/5) = `48,000 |
|
Loss on Sale of Machinery |
= |
`8,000 |
|
Sale proceeds
from the Machinery |
= |
Book Value of the Machine as on 1st April, 2025
– Loss on Sale |
|
|
= |
`(48,000 – 8,000) =
`40,000 |
|
|
|
|
|
2) Calculation of Sale proceeds from
Machinery sold on 1st July 2025 |
||
|
Book Value of the Machine as on 1st July, 2025 |
= |
[(Total opening balance of Machinery on this
date/4-Depreciation] |
|
|
= |
`[(1,68,000/4) – 1,500] = `40,500 |
|
Loss on Sale of Machinery |
= |
`12,500 |
|
Sale proceeds
from the Machinery |
= |
Book Value of the Machine as on 1st July, 2025
– Loss on Sale |
|
|
= |
`(40,500 – 12,500) = `28,000 |
Question 11:
On 1st April, 2021, Gurman toys
purchased a machine for
`2,40,000 and spent `10,000 on its erection. On 1st October,
2021 an additional machinery costing
`1,00,000 was purchased. On 1st October, 2023,
the machine purchased on 1st April, 2021 was sold for `1,43,000 and on the same date, a new
machine was purchased at cost of
`2,00,000.
Show the Machinery Account for the first four financial years after charging
Depreciation at 5% p.a. by the Straight Line Method.
Answer:
Machinery
Account
|
Dr. |
|
Cr. |
||||||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
|||||
|
2021 |
|
|
|
2021 |
|
|
|
|||||
|
April 01 |
Bank (M1) |
|
2,50,000 |
March 31 |
Depreciation |
|
|
|||||
|
Oct. 01 |
Bank (M2) |
|
1,00,000 |
|
M1 |
12,500 |
|
|
||||
|
|
|
|
|
|
M2 (6 Months) |
2,500 |
|
15,000 |
||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M1 |
2,37,500 |
|
|
||||
|
|
|
|
|
|
M2 |
97,500 |
|
3,35,000 |
||||
|
|
|
|
3,50,000 |
|
|
|
3,50,000 |
|||||
|
2021 |
|
|
|
2022 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
March 31 |
Depreciation |
|
|
|||||
|
|
M1 |
2,37,500 |
|
|
|
M1 |
12,500 |
|
|
|||
|
|
M2 |
97,500 |
|
3,35,000 |
|
M2 |
5,000 |
|
17,500 |
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M1 |
2,25,000 |
|
|
||||
|
|
|
|
|
|
M2 |
92,500 |
|
3,17,500 |
||||
|
|
|
|
3,35,000 |
|
|
|
3,35,000 |
|||||
|
2022 |
|
|
|
2022 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
Oct. 01 |
Depreciation
(for 6 months) |
|
6,250 |
|||||
|
|
M1 |
2,25,000 |
|
|
Oct. 01 |
Bank (M1 sold) |
|
1,43,000 |
||||
|
|
M2 |
92,500 |
|
3,17,500 |
Oct. 01 |
Profit and Loss
(loss on sale) |
|
75,750 |
||||
|
|
|
|
|
|
2023 |
|
|
|
||||
|
July 01 |
Bank (M3) |
|
2,00,000 |
March 31 |
Depreciation |
|
|
|||||
|
|
|
|
|
|
M2 |
5,000 |
|
|
||||
|
|
|
|
|
|
M3 (for 6 months) |
5,000 |
|
10,000 |
||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M2 |
87,500 |
|
|
||||
|
|
|
|
|
|
M3 |
1,95,000 |
|
2,82,500 |
||||
|
|
|
|
5,17,500 |
|
|
|
5,17,500 |
|||||
|
2023 |
|
|
|
2025 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
March 31 |
Depreciation |
|
|
|||||
|
|
M2 |
87,500 |
|
|
|
M2 |
5,000 |
|
|
|||
|
|
M3 |
1,95,000 |
|
2,82,500 |
|
M3 |
10,000 |
|
15,000 |
|||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M2 |
82,500 |
|
|
||||
|
|
|
|
|
|
M3 |
1,85,000 |
|
2,67,500 |
||||
|
|
|
|
2,82,500 |
|
|
|
2,82,500 |
|||||
|
|
|
|
|
|
|
|
|
|||||
Working Notes:
1. Calculation of Deprecation
Machine
1= 2,50,000×5/100= `12,500 p.a.
Machine
2= 1,00,000×5/100= `5,000 p.a.
Machine 3= 2,00,000×4/100= `10,000 p.a.
2. Calculation of profit or loss on sale of Machine
|
Particulars |
(`) |
|
Book Value on
April 01, 2022 |
2,25,000 |
|
Less: Deprecation for six
month |
(6,250) |
|
Book Value on
Oct. 01, 2022 |
2,18,750 |
|
Less: Sale Proceeds |
(1,43,000) |
|
Loss on Sale of
Machine |
75,750 |
Question 12:
On 1st
April, 2010, Plant and Machinery was purchased for `1,20,000. New machinery was
purchased on 1st October, 2010 for `50,000
and on 1st July, 2011, for `25,000.
On 1st January, 2013, a machinery of the original value of `20,000 which was included in the machinery purchased on 1st
April, 2010, was sold for `6,000.
Prepare Plant and Machinery A/c for three years after providing depreciation at
10% p.a. on Straight Line Method. Accounts are closed on 31st March every year.
(KVS)
Answer
|
Machinery
Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2010 |
|
|
|
2011 |
|
|
|
||
|
April 01 |
Bank A/c (M1) |
|
1,20,000 |
Mar.31 |
Depreciation A/c |
|
|
||
|
Oct. 01 |
Bank A/c (M2) |
|
50,000 |
|
M1 – 12,000 |
|
|
||
|
|
|
|
|
|
(WN3) M2 –
2,500 |
|
14,500 |
||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||
|
|
|
|
|
|
M1 – 1,08,000 |
|
|
||
|
|
|
|
|
|
M2 – 47,500 |
|
1,55,500 |
||
|
|
|
|
1,70,000 |
|
|
|
1,70,000 |
||
|
2011 |
|
|
|
2012 |
|
|
|
||
|
April 01 |
Balance B/d |
|
|
Mar.31 |
Depreciation A/c |
|
|
||
|
|
M1 – 1,08,000 |
|
|
M1 – 12,000 |
|
|
|||
|
|
M2 – 47,500 |
1,55,500 |
|
M2 – 5,000 |
|
||||
|
|
|
|
|
|
(WN4) M3-1,875 |
|
18,875 |
||
|
July 01 |
Bank A/c (M3) |
|
25,000 |
Mar.31 |
Balance c/d |
|
|
||
|
2012 |
|
|
|
|
M1 – 96,000 |
|
|
||
|
|
|
|
|
|
M2 – 42,500 |
|
|
||
|
|
|
|
|
|
M3 – 23,125 |
|
1,61,625 |
||
|
|
|
|
1,80,500 |
|
|
|
1,80,500 |
||
|
2012 |
|
|
|
2013 |
|
|
|
||
|
Mar.31 |
Balance B/d |
|
|
Jan 1 |
Depreciation A/c (WN5) |
|
1,500 |
||
|
|
M1 – 96,000 |
|
Jan 1 |
Bank A/c (M1) |
|
6,000 |
|||
|
|
M2 – 42,500 |
|
|
Jan 1 |
Profit and loss A/c (Loss) |
|
8,500 |
||
|
|
M3 – 23,125 |
|
1,61,625 |
Mar.31 |
Depreciation A/c |
|
|
||
|
|
|
|
|
|
M1– 10,000 |
|
|
||
|
|
|
|
|
|
M2 – 5,000 |
|
|
||
|
|
|
|
|
|
M3 – 2,500 |
|
17,500 |
||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||
|
|
|
|
|
|
M1 – 70,000 |
|
|
||
|
|
|
|
|
|
M2 – 37,500 |
|
|
||
|
|
|
|
|
|
M3 – 20,625 |
|
1,28,125 |
||
|
|
|
|
1,61,625 |
|
|
|
1,61,625 |
||
|
|
|
|
|
|
|
|
|
||
Working notes:
WN 1: Annual depreciation @10% p. a.
Machinery 1
– 12,000 of 1,20,000
Machinery 2
– 5,000 of 50,000
Machinery 3
– 2,500 of 25,000
WN 2: First year depreciation @10% p.
a.
Machinery 1
– 12,000 of 1,20,000
Machinery 2
– 5,000 of 50,000 for 6 month is 2,500
WN3: Depreciation (for 2nd
Machinery)
(For 6
months) M2 – 2,500
Calculated as below
(1,20,000 ×10×6)÷(100×12) =2,500
WN4: Depreciation (for 3rd
Machinery)
(For 9
months) M3 -1,875
Calculated as below
(50,000
×10×9)÷(100×12) =1,875
WN5: Depreciation (for 1st
machinery sold at time of sale)
(For Machinery,
cost of 20,000 for 3 months)
Calculated as below
(25,000
×10×3)÷(100×12) =1,500
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Ts Grewal Solution 2025-2026
Class 11th