Question

From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2019:

1st April, 2018	:	Purchased a second-hand machinery for ₹ 40,000
1st April, 2018	:	Spent ₹ 10,000 on repairs for making it serviceable.
30th September, 2018	:	Purchased additional new machinery for ₹ 20,000.
31st December, 2018	:	Repairs and renewal of machinery ₹ 3,000.
31st March, 2019	:	Depreciate the machinery at 10% p.a.

Answer 1

Machinery Account
Dr.											Cr.
Date		Particulars	J.F.	Amount (₹)	Date	Particular			J.F.	Amount (₹)
2018					2019
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, 2018 will not be recorded in Machinery Account because, this repair was made after putting the Machinery into use.