Question

A company whose accounting year is the calendar year purchased on 1st April, 2009 machinery costing : 30,000. It further purchased machinery on 1st Oct. 2009 costing : 20,000 and on 1st July, 2010 costing : 10,000.On 1st Jan., 2011 one third of the machinery installed, on 1st April, 2009 became obsolete and was sold for : 3,000.

Show how the Machinery Account would appear in the books of company if depreciation is charged @ 10%p.a, on Written down Value Method. Prepare Machinery Account from 2009 to 2012. Show your workings clearly.

Or

From the following Transactions, Prepare cash book with cash and Bank columns:

2013

Feb. 1 Cash in hand : 7,500 cash at Bank : 8,000.

Feb. 3 Discount a bill receivable for : 6,000 at 2% through Bank.

Feb. 5 Bought goods for : 2,000 and paid by cheque.

Feb. 15 Paid Trade expense:120.

Feb. 16 Drew from Bank for office use : 1,000.

Feb. 17 Sold goods for : 12,500 and received a cheque.

Feb. 25 Paid Insurance : 100.

Feb. 27 Cheque received on 17th deposited in Bank.

Feb. 28 Received a cheque from John & co. : 6,000.

Feb. 28 Purchased 100 NSC for : 100 at : 95 each and paid by cheque

Answer 1

Machinery A/c

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount (Rs)}& \text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount (Rs)}\\ 2009& & & & 2009& & & \\ \text{1 Apr.}& \text{To Bank A/c I}& & 30,000& \text{31 Dec.}& \text{By Depareciation A/c}& & \\ \text{1 Oct.}& \text{To Bank A/c II}& & 20,000& & I2,250& & \\ & & & & & II\underset{–}{500}& & 2,750\\ & & & & & \text{By Balnce c/d}& & \\ & & & & & I27,750& & \\ & & & & & II\underset{–}{19,500}& & 47,250\\ & & & \underset{–}{\overline{50,000}}& & & & \underset{–}{\overline{50,000}}\\ 2010& & & & 2010& & & \\ \text{1 Jan.}& \text{To Balance b/d}& & & \text{31 Dec.}& \text{By Depareciation A/c}& & \\ & I27,750& & & & I2,775& & \\ & I\underset{–}{19,500}& & 47,250& & I1,950& & \\ \text{1 July}& \text{To Bank A/c III}& & 10,000& & III\underset{–}{500}& & 5,225\\ & & & & & \text{By Balance c/d}& & \\ & & & & & I24,975& & \\ & & & & & II17,550& & \\ & & & & & III\underset{–}{9,500}& & \underset{–}{52,025}\\ & & & \underset{–}{\overline{57,250}}& & & & \underset{–}{\overline{57,250}}\\ 2011& & & & 2011& & & \\ \text{1 Jan.}& \text{To Balance b/d}& & & \text{1 Jan.}& \text{By Bank A/c}& & 3,000\\ & I24,975& & & & \text{By P \& L A/c (loss)}& & 5,325\\ & II17,550& & & \text{31 Dec.}& \text{By Depreciation A/c}& & \\ & III\underset{–}{9,500}& & 52,025& & I1,665& & \\ & & & & & II1,755& & \\ & & & & & III\underset{–}{950}& & 4,370\\ & & & & & \text{By Balances c/d}& & \\ & & & & & I14,985& & \\ & & & & & II15,795& & \\ & & & & & III\underset{–}{8,550}& & 39,330\\ & & & \underset{–}{\overline{52,025}}& & & & \underset{–}{\overline{52,025}}\\ 2012& & & & & & & \\ \text{1 Jan.}& \text{To Balance b/d}& & & & & & \\ & I14,985& & & & & & \\ & II15,795& & & & & & \\ & III8,550& & 39,220& & & & \end{array}$

Or

Machinery A/c

$\begin{array}{cccccccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Cash(Rs)}& \text{Bank (Rs)}& \text{Date}& \text{Particulars}& \text{L.F.}& \text{Cash(Rs)}& \text{Bank (Rs)}\\ 2013& & & & & 2013& & & & \\ \text{Feb.1}& \text{To Balance b/d}& & 7,500& 8,000& \text{Feb.5}& \text{By Purhases}& & -& 2,000\\ \text{Feb.3}& \text{To Bills Receivable}& & -& 5,880& \text{Feb.15}& \text{By Trades Expenses}& & 120& -\\ \text{Feb.16}& \text{To Bank A/c}& \left(c\right)& 1,000& -& \text{Feb.16}& \text{By Cash A/c}& \left(c\right)& -& 1,000\\ \text{Feb.17}& \text{To Sales A/c}& & 12,500& -& \text{Feb.25}& \text{By Insurance A/c}& & 100& -\\ \text{Feb.27}& \text{To Cash A/c}& \left(c\right)& -& 12,500& \text{Feb.27}& \text{By Bank A/c}& \left(c\right)& 12,500& -\\ \text{Feb.28}& \text{To John \& Co}& & -& 6,000& \text{Feb.28}& \text{By Investment A/c}& & -& 9,500\\ & & & & & \text{Feb.28}& \text{By Balance c/d}& \underset{–}{}& 8,280& 29,880\\ & & & \underset{–}{\overline{21,000}}& \underset{–}{\overline{32,380}}& & & \underset{–}{}& \underset{–}{\overline{21,000}}& \underset{–}{\overline{32,380}}\\ 2013& & & & & & & & & \\ \text{Mar.1}& \text{To Balance b/d}& & 8,280& 29,880& & & & & \end{array}$