Question

From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2018:

1st April, 2017	:	Purchased a second-hand machinery for ₹ 40,000
1st April, 2017	:	Spent ₹ 10,000 on repairs for making it serviceable.
30th September, 2017	:	Purchased additional new machinery for ₹ 20,000.
31st December, 2017	:	Repairs and renewals of machinery ₹ 3,000.
31st March, 2018	:	Depreciate the machinery at 10% p.a.

Answer 1

Machinery Account
Dr.											Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particular			J.F.	Amount (Rs)
2017					2018
Apr.01		Bank (M1)		50,000	Mar.31	Depreciation
Sept 30		Bank (M2)		20,000		M1		5,000
						M2 (6 months)		1,000		6,000
					Mar.31	Balance c/d
						M1	45,000
						M2 (6 months)	19,000			64,000
				70,000						70,000

Note:

Repair and renewal made on December 31, 2017 will not be recorded in Machinery Account because, this repair was made after putting the Machinery into use.