A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 01, 2017 is Rs 40,00,000. On October 01, 2017 it sold one of its cranes whose value was Rs 5,00,000 on April 01, 2017 at a 10% profit. On the same day it purchased 2 cranes for Rs 4,50,000 each. Prepare cranes account. It closes the books on December 31 and provides for depreciation on 10% written down value.

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Solution

Cranes Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2017

2017

Apr.01

Machinery (35,00,000 + 5,00,000)

40,00,000

Oct.01

Depreciation

25,000

Oct.01

Profit and Loss (Profit)

47,500

Oct.01

Bank

5,22,500

Oct.01

Bank

9,00,000

Dec.31

Depreciation

35,00,000 ×

10

×

9

= 2,62,500

100

12

9,00,000 ×

10

×

6

= 22,500

2,85,000

100

12

Dec.31

Balance c/d

32,37,500 + 8,77,500

41,15,000

49,47,500

49,47,500

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A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 1, 2001, is Rs. 40,00,000. On October 1, 2001, it sold one of its cranes whose value was Rs. 5,00,000 on April 1, 2001 at a 10 % profit. On the same day. it purchased 2 cranes for Rs. 4,50,000 each.

Prepare Cranes account. It closes the books on December 31 and provides for depreciation on $10 %$ written down value.

Q. Question: A Noida based Construction Company owns 5 cranes and the value of these assets in its books on April 1, 2001 is Rs

40, 00, 000

. On October 1, 2001 it sold one of its cranes whose value was Rs

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10 %

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4, 50, 000

each.
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written down value.

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Cranes Account
Dr.											Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars					J.F.	Amount Rs
2017				2017
Apr.01	Machinery (35,00,000 + 5,00,000)		40,00,000	Oct.01	Depreciation						25,000
Oct.01	Profit and Loss (Profit)		47,500	Oct.01	Bank						5,22,500
Oct.01	Bank		9,00,000	Dec.31	Depreciation
					35,00,000 ×	10	×	9	= 2,62,500
					35,00,000 ×	100	×	12	= 2,62,500
					9,00,000 ×	10	×	6	= 22,500		2,85,000
					9,00,000 ×	100	×	12	= 22,500		2,85,000
				Dec.31	Balance c/d
					32,37,500 + 8,77,500						41,15,000

			49,47,500								49,47,500