Question

A manufacturing concern, whose books are closed on 31st Dec, purchased machinery for Rs 50,000 on 1st January, 2008. Additional machinery was acquired for Rs 10,000 on 1st July, 2010 and for Rs 16,000 on 1st January, 2012. Machinery purchased for Rs 10,000 on 1st July, 2010 was sold for Rs 5,000 on 30th June, 2012. Show the machinery account for 5 years, writing off Depreciation @ 10% per annum on written down value.

Answer 1

$\text{MACHINERY ACCOUNT}\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount}& \text{Date}& \text{Particulars}& \text{L.F.}& \text{Amount}\\ 2000& & & & 2000& & & \\ \text{Jan. 1}& \text{To Bank A/c}& & 50,000& \text{Dec.31}& \text{By Decpreciation A/c}& & 5,000\\ & & & & \text{Dec 31}& \text{By Balance c/d}& & 45,000\\ 2001& & & \overline{\underset{–}{\underset{–}{50,000}}}& & & & \overline{\underset{–}{\underset{–}{50,000}}}\\ 2001& & & & 2001& & & \\ \text{Jan.1}& \text{Balance b/d}& & 45,000& \text{Dec.31}& \text{By Depreciation A/c}& & 5,000\\ \text{July 1}& \text{To Bank A/c}& & 10,000& \text{Dec. 31}& \text{By Balance c/d}& & 50,000\\ & & & \overline{\underset{–}{\underset{–}{55,000}}}& & & & \overline{\underset{–}{\underset{–}{55,000}}}\\ 2002& & & & 2002& & & \\ \text{Jan.1}& \text{To Balance b/d}& & 50,000& \text{Dec.31}& \text{By Depreciation A/c}& & 5,000\\ & & & & \text{Dec.31}& \text{By Balance c/d}& & 45,000\\ & & & \overline{\underset{–}{\underset{–}{50,000}}}& & & & \overline{\underset{–}{\underset{–}{50,000}}}\\ 2003& & & & 2003& & & \\ \text{Jan.1}& \text{To Balance b/d}& & 45,000& \text{Dec.31}& \text{By Depreciation A/c}& & \\ & & & & & (428+3,645)& & 5,000\\ & & & & \text{Dec.31}& \text{By Bank A/c}& & 5,000\\ & & & & \text{Dec.31}& \text{By Balance c/d}& & 32,805\\ & & & \overline{\underset{–}{\underset{–}{45,000}}}& & & & \overline{\underset{–}{\underset{–}{45,000}}}\\ 2004& & & & 2004& & & \\ \text{Jan.1}& \text{To Balance b/d}& & 32,805& \text{Dec. 31}& \text{By Depreciation A/c}& & 4,881\\ \text{Jan.1}& \text{To Bank A/c}& & 16,000& \text{Dec.31}& \text{By Balance c/d}& & 43,924\\ & & & \overline{\underset{–}{\underset{–}{48,805}}}& & & & \overline{\underset{–}{\underset{–}{48,805}}}\end{array}$