Question

From the following transactions of a concern, prepare Machinery Account for the year ending 31st March, 2013 :-

2012
April 1	:	Purchased a second-hand machinery for ₹ 40,000.
April 1	:	Spent ₹ 10,000 on repairs for making it serviceable.
Sept. 30	:	Purchased additional new machinery for ₹ 20,000.
Dec. 31	:	Repairs and renewals of machinery ₹ 2,000.
2013
March 31	:	Depreciate the machinery at 10% p.a.

Answer 1

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars			Amount (Rs)
2012			2013
Apr. 01	Bank A/c (M1) (40,000 + 10,000)	50,000	Mar. 31		Depreciation A/c
Sept.30	Bank A/c (M2)	20,000			M1		5,000
					M2 (for 6 months)		1,000	6,000
					Balance c/d
					M1	45,000
					M2	19,000		64,000
		70,000						70,000

Note: Repair charges of Rs 2,000 are categorised under revenue expenditure because these are incurred on December 31, 2012 but machinery has been purchased on September 30, 2012.