Question :
Berlia Ltd purchased a second hand machine for Rs $56, 000$ on July 1, 2001 and spent Rs $24, 000$ on its repair and installation and Rs $5, 000$ for its carriage. On September 1, 2002,it purchased another machine for Rs $2, 50, 000$ and spent RS $10, 000$ on its installation.

(a) Depreciation is provided on machinery @ $10 %$ per annum on original cost method annually on December 31. Prepare Machinery account and Depreciation account from the year 2001 to 2004.
(b) Prepare Machinery account and Depreciation account from the year 2001 to 2004. If depreciation is provided on machinery annually on December 31.

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Solution

Answer :
Dr Machinery Account Cr
Date Particulars JF Amt. (Rs) Date Particulars JF Amt.(Rs)
2001 Jan To Bank A/c Machine (I) = $(56, 000 + 24, 000 + 5, 000)$ $85, 000$ 2001 Dec 31 By Depreciation A/c
$4, 250$

Dec 31 By Balance c/d $80, 750$

$85, 000$

$85, 000$
2002 Jan 1 To Balance b/d
Machine (I)
$80, 750$ 2002 Dec 31 By Depreciation A/c
Machine (i) $8, 500$
Machine (II) $8, 667$
$17, 167$
Sep 1 To Bank A/c Machine (II) $(2, 50, 000 + 10, 000)$
$2, 60, 000$ 2002 Dec 31 By Balance c/d
Machine (I) $72, 750$
Machine(II) $2, 51, 333$
$3, 23, 583$
$3, 40, 750$
$3, 40, 750$
2003 Jan 1 To Balance b/d
Machine (I) $72, 250$
Machine (II) $2, 51, 333$
$3, 23, 583$ 2003 Dec 31 By Depreciation A/c Machine (I) $8, 500$
Machine (II) $26, 000$
$34, 500$

Dec 31 By Balance c/d
Machine (I) $63, 750$
Machine (II) $2, 25, 333$
$2, 89, 083$
$3, 23, 583$ $3, 23, 583$
2004 Jan 1 To Balance b/d
Machine (I) $63, 750$
Machine (II) $2, 25, 333$
$2, 89, 083$ 2004 Dec 31 By Depreciation A/c
Machine (I) $8, 500$
Machine (II) $26, 000$
By Balance c/d
Machine (I) $55, 250$
Machine (II)
$1, 99, 333$
$34, 500$
$2, 54, 583$
$2, 89, 083$ $2, 89, 083$

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Similar questions

Berlia Ltd purchased a second hand machine for Rs 56,000 on July 1, 2001 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 1, 2002, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation.

(a) Depreciation is provided on machinery @ $10 %$ per annum on original cost method annually on December 31. Prepare Machinery account and Depreciation account from the year 2001 to 2004.

(b) Prepare Machinery account and Depreciation account from the year 2001 to 2004. If depreciation is provided on machinery @ $10 %$ per annum on written down value method annually on December 31.

Berlia Ltd. Purchased a second hand machine for Rs 56,000 on July 01, 2015 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 01, 2016, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation.

(a) Depreciation is provided on machinery @10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018.

(b) Prepare machinery account and depreciation account from the year 2015 to 20018, if depreciation is provided on machinery @10% p.a. on written down value method annually on December 31.

Ganga Ltd purchased a machinery on January 1, 2001, for Rs 5,50,000 and spent Rs 50,000 on its installation. On September 1, 2001, it purchased another machine for Rs 3,70,000. On May 01, 2002 it purchased another machine for Rs 8,40,000 (including installation expenses).

Depreciation was provided on machinery @ $10 %$ per annum on original cost method annually on December 31. Prepare

(a) Machinery account and Depreciation account for the years 2001, 2002, 2003 and 2004.

(b) If depreciation is accumulated in the provision for Depreciation account, then prepare Machine account and Provision for depreciation account for the years 2001, 2002, 2003 and 2004.

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Q. Question : Saraswati Ltd purchased a machinery costing Rs

10, 00, 000

on January 1, 2001. A new machinery was purchased on 01, May, 2002 for Rs

15, 00, 000

and another on July 1, 2004 for Rs

12, 00, 000

. A part of the machinery which originally cost Rs

2, 00, 000

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75, 000

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10 %

per annum on original cost and account are closed on December 31st, every year.

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Date	Particulars	JF	Amt. (Rs)	Date	Particulars	JF	Amt.(Rs)
2001 Jan	To Bank A/c Machine (I) = $(56, 000 + 24, 000 + 5, 000)$		$85, 000$	2001 Dec 31	By Depreciation A/c		$4, 250$
				Dec 31	By Balance c/d		$80, 750$
			$85, 000$				$85, 000$
2002 Jan 1	To Balance b/d Machine (I)		$80, 750$	2002 Dec 31	By Depreciation A/c Machine (i) $8, 500$ Machine (II) $8, 667$		$17, 167$
Sep 1	To Bank A/c Machine (II) $(2, 50, 000 + 10, 000)$		$2, 60, 000$	2002 Dec 31	By Balance c/d Machine (I) $72, 750$ Machine(II) $2, 51, 333$		$3, 23, 583$
			$3, 40, 750$				$3, 40, 750$
2003 Jan 1	To Balance b/d Machine (I) $72, 250$ Machine (II) $2, 51, 333$		$3, 23, 583$	2003 Dec 31	By Depreciation A/c Machine (I) $8, 500$ Machine (II) $26, 000$		$34, 500$
				Dec 31	By Balance c/d Machine (I) $63, 750$ Machine (II) $2, 25, 333$		$2, 89, 083$
			$3, 23, 583$				$3, 23, 583$
2004 Jan 1	To Balance b/d Machine (I) $63, 750$ Machine (II) $2, 25, 333$		$2, 89, 083$	2004 Dec 31	By Depreciation A/c Machine (I) $8, 500$ Machine (II) $26, 000$ By Balance c/d Machine (I) $55, 250$ Machine (II) $1, 99, 333$		$34, 500$ $2, 54, 583$
			$2, 89, 083$				$2, 89, 083$