Question 25:
Following balances appear
in the books of M/s. Amrit as on 1st April, 2020:
|
|
|
` |
|
2020 |
|
|
|
1st April |
Machinery
A/c |
60,000 |
|
|
Provision
for Depreciation A/c |
36,000 |
On
1st April, 2020, they decided to dispose off a
machinery for ` 8,400 which was purchased on
1st April, 2016 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, 2021.
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. |
( `) |
||
|
2020 |
|
|
|
2020 |
|
|
|
||
|
April 01 |
Balance b/d (44,000 + 16,000) |
|
60,000 |
April 01 |
Machinery
Disposal |
|
16,000 |
||
|
|
|
|
|
2021 |
|
|
|
||
|
|
|
|
|
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. |
( `) |
||
|
2020 |
|
|
|
2020 |
|
|
|
||
|
April 01 |
Machinery Disposal (4 years) |
|
6,400 |
April 01 |
Balance b/d |
|
36,000 |
||
|
2021 |
|
|
|
2021 |
|
|
|
||
|
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. |
( `) |
||
|
2020 |
|
|
|
2020 |
|
|
|
||
|
April 01 |
Machinery |
|
16,000 |
April 01 |
Provision for
Depreciation |
|
6,400 |
||
|
|
|
|
|
2021 |
|
|
|
||
|
|
|
|
|
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, 2020 |
16,000 |
|
Less:
Accumulated Depreciation on Machine Sold (1,600 × 4) |
(6,400) |
|
Book Value of
April 01, 2020 |
9,600 |
|
Less:
Sale Value |
(8,400) |
|
Loss on Sale |
1,200 |
Question 26:
Ashoka & Co. whose books are closed on 31st March,
purchased a machinery for ` 1,50,000 on 1st April, 2019,
Additional machinery was acquired for ` 50,000 on 1st October, 2019. Certain
machinery which was purchased for ` 50,000
on 1st October, 2019 was sold for ` 40,000 on 30th September, 2021.
Prepare the Machinery Account and Accumulated Depreciation Account for all the
years up to the year ended 31st March, 2022. Depreciation is charged @ 10% p.a.
on Straight Line Method. Also, show the Machinery Disposal Account.
Answer:
|
Books of Ashoka &
Co. Machinery Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
( `) |
Date |
Particulars |
J.F. |
( `) |
||
|
2019 |
|
|
|
2020 |
|
|
|
||
|
Apr.01 |
Bank (I) |
|
1,50,000 |
|
|
|
|
||
|
Oct 01 |
Bank (II) |
|
50,000 |
Mar.31 |
Balance c/d |
|
2,00,000 |
||
|
|
|
|
2,00,000 |
|
|
|
2,00,000 |
||
|
2020 |
|
|
|
2021 |
|
|
|
||
|
Apr.01 |
Balance b/d |
|
2,00,000 |
Mar.31 |
Balance c/d |
|
2,00,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
2,00,000 |
|
|
|
2,00,000 |
||
|
2021 |
|
|
|
2021 |
|
|
|
||
|
Apr.01 |
Balance b/d |
|
2,00,000 |
Sep 30 |
Machinery Disposal A/c |
|
50,000 |
||
|
|
|
|
|
2022 Mar.31, |
Balance c/d |
|
1,50,000 |
||
|
|
|
|
2,00,000 |
|
|
|
2,00,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated Depreciation Account |
|||||||||||||
|
Dr. |
|
Cr. |
|||||||||||
|
Date |
Particulars |
J.F. |
( `) |
Date |
Particulars |
J.F. |
( `) |
|
|||||
|
2020 |
|
|
|
2019 |
|
|
|
|
|||||
|
Mar.31 |
Balance c/d |
|
|
Mar. 31 |
Depreciation |
|
|
|
|||||
|
|
I |
15,000 |
|
|
|
I |
15,000 |
|
|
|
|||
|
|
II |
2,500 |
|
17,500 |
|
II (for 6 months) |
2,500 |
|
17,500 |
|
|||
|
|
|
|
17,500 |
|
|
|
17,500 |
|
|||||
|
2021 |
|
|
|
2020 |
|
|
|
|
|||||
|
Mar.31 |
Balance c/d |
|
|
Apr. 01 |
Balance b/d |
|
|
|
|||||
|
|
I |
30,000 |
|
|
|
I |
15,000 |
|
|
|
|||
|
|
II |
7,500 |
|
37,500 |
2021 |
II |
2,500 |
|
17,500 |
|
|||
|
|
|
|
|
Mar. 31 |
Depreciation |
|
|
|
|||||
|
|
|
|
|
|
I |
15,000 |
|
|
|
||||
|
|
|
|
|
|
II |
5,000 |
|
20,000 |
|
||||
|
|
|
|
37,500 |
|
|
|
|
37,500 |
|
||||
|
2021 |
|
|
|
2021 |
|
|
|
|
|||||
|
Sep 30 |
Machinery disposal (II) |
|
10,000 |
Apr.
01 |
Balance b/d |
|
|
|
|||||
|
Mar.31, 2022 |
Balance c/d (I) |
|
45,000 |
|
I |
30,000 |
|
|
|
||||
|
|
|
|
|
|
II |
7,500 |
|
37,500 |
|
||||
|
|
|
|
|
2021 Sep 30 |
Depreciation (II) |
|
2,500 |
|
|||||
|
|
|
|
|
Mar. 31 |
Depreciation (I) |
|
15,000 |
|
|||||
|
|
|
|
55,000 |
|
|
|
55,000 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Machinery Disposal Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
( `) |
Date |
Particulars |
J.F. |
( `) |
||
|
2021 |
|
|
|
2021 |
|
|
|
||
|
Sep 30 |
Machinery A/c |
|
50,000 |
Sep
30 |
Accumulated Depreciation A/c |
|
10,000 |
||
|
|
|
|
|
Sep
30 |
Bank A/c |
|
40,000 |
||
|
|
|
|
50,000 |
|
|
|
50,000 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
Working note
1. Calculation of Profit or Loss on sale of Machine II
|
Particulars |
( `) |
|
Original Cost
Oct 01, 2021 |
50,000 |
|
Less:
Accumulated Depreciation |
(10,000) |
|
Book Value on
Sept 30, 2021 |
40,000 |
|
Less:
Sale Value |
(40,000) |
|
Profit / Loss |
NIL |
Question
27
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 |
||
|
|
|
|
|
|
|
|
|
||
Class : 11th | Ts Grewal solution 2022-2023
Chapter 15: Depreciation
Click below for More solutions