Question

Evergreen Traders purchased a machine on 1st April, 2012 at a cost of Rs. 8,000 and spent Rs. 2,000 on its installation. The firm writes off depreciation @ 10 % per annum by fixed instalment method.
Show the machine account for 4 years in the books of Evergreen Traders. The books are closed on 31st March every year.

Answer 1

$\begin{array}{cccccccc}\text{Dr}& & & & \text{Machinery Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ 2012& & & & 2013& & & \\ \text{Apr 1}& \text{Bank A/c}(8,000+2,000)& & 10,000& \text{Mar 31}& \text{Depreciation A/c}& & 1,000\\ & & & & & \text{(10\% on Rs. 10,000)}& & \\ & & & & \text{Mar 31}& \text{Balance c/d}& & 9,000\\ & & & \overline{\underset{–}{\underset{–}{10,000}}}& & & & \overline{\underset{–}{\underset{–}{10,000}}}\\ 2013& & & & 2014& & & \\ \text{Apr 1}& \text{Balance b/d}& & 9,000& \text{Mar 31}& \text{Depreciation A/c}& & 1,000\\ & & & & \text{Dec 31}& \text{Balance c/d}& & 8,000\\ & & & \overline{\underset{–}{\underset{–}{9,000}}}& & & & \overline{\underset{–}{\underset{–}{9,000}}}\\ 2014& & & & 2015& & & \\ \text{Apr 1}& \text{Balance b/d}& & 8,000& \text{Mar 31}& \text{Depreciation A/c}& & 1,000\\ & & & & \text{Mar 31}& \text{Balance c/d}& & 7,000\\ & & & \overline{\underset{–}{\underset{–}{8,000}}}& & & & \overline{\underset{–}{\underset{–}{8,000}}}\\ 2015& & & & 2016& & & \\ \text{Apr 1}& \text{Balance b/d}& & 7,000& \text{Mar 31}& \text{Depreciation A/c}& & 1,000\\ & & & & \text{Mar 31}& \text{Balance c/d}& & 6,000\\ & & & \overline{\underset{–}{\underset{–}{7,000}}}& & & & \overline{\underset{–}{\underset{–}{7,000}}}\\ 2016& & & & & & & \\ \text{Apr 1}& \text{Balance b/d}& & 6,000& & & & \end{array}$