Question

Kamal Bros purchased a machine on 1st April 2012 at a cost Rs. 16,000 spent Rs. 4,000 on its installation. The firm writes off depreciation @ 10% per annum by written value method. The scrap value of the machine at the end of its economic life of 4 years is expected to be Rs. 13,122.

Show the machine account, depreciation account and provision for depreciation account for 4 years in books Kamal Bros. The book is closed on 31st March every year.

Answer 1

$\begin{array}{cccccccc}\text{Dr}& & & & \text{Machinery Account}& & & \text{Cr}\end{array}$
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}\\ 2012& & & & 2013& & & \\ \text{Apr}1& \text{Bank A/c}& & 20,000& \text{Mar}31& \text{Balance c/d}& & 20,000\\ & (16,000+4,000)& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{20,000}}}& & & & \overline{\underset{–}{\underset{–}{20,000}}}\\ 2013& & & & 2014& & & \\ \text{Apr}1& \text{Balance b/d}& & 20,000& \text{Mar}31& \text{Balance c/d}& & 20,000\\ & & & \overline{\underset{–}{\underset{–}{20,000}}}& & & & \overline{\underset{–}{\underset{–}{20,000}}}\\ 2014& & & & 2015& & & \\ \text{Apr}1& \text{Balance b/d}& & 20,000& \text{Mar}31& \text{Balance c/d}& & 20,000\\ & & & \overline{\underset{–}{\underset{–}{20,000}}}& & & & \overline{\underset{–}{\underset{–}{20,000}}}\\ 2015& & & & 2016& & & \\ \text{Apr}1& \text{Balance b/d}& & 20,000& \text{Mar}31& \text{Balance c/d}& & 20,000\\ & & & \overline{\underset{–}{\underset{–}{20,000}}}& & & & \overline{\underset{–}{\underset{–}{20,000}}}\end{array}$

$\begin{array}{cccccccc}\text{Dr}& & & & \text{Depreciation Account}& & & \text{Cr}\end{array}$
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}\\ 2013& & & & 2013& & & \\ \text{Mar}31& \text{Provision for}& & 2,000& \text{Mar}31& \text{Profit and Loss A/c}& & 2,000\\ & \text{Depreciation A/c}& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{2,000}}}& & & & \overline{\underset{–}{\underset{–}{2,000}}}\\ 2014& & & & 2014& & & \\ \text{Mar}31& \text{Provision for}& & 1,800& \text{Mar}31& \text{Profit and Loss A/c}& & 1,800\\ & \text{Depreciation A/c}& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{1,800}}}& & & & \overline{\underset{–}{\underset{–}{1,800}}}\\ 2015& & & & 2015& & & \\ \text{Mar}31& \text{Provision for}& & 1,620& \text{Mar}31& \text{Profit and Loss A/c}& & 1,620\\ & \text{Depreciation A/c}& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{1,620}}}& & & & \overline{\underset{–}{\underset{–}{1,620}}}\\ 2016& & & & 2016& & & \\ \text{Mar}31& \text{Provision for}& & 1,458& \text{Mar}31& \text{Profit and Loss A/c}& & 1,458\\ & \text{Depreciation A/c}& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{1,458}}}& & & & \overline{\underset{–}{\underset{–}{1,458}}}\end{array}$

$\begin{array}{cccccccc}\text{Dr}& & & & \text{Provision for Depreciation Account}& & & \text{Cr}\end{array}$
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt (Rs.)}\\ 2013& & & & 2013& & & \\ \text{Mar}31& \text{Balance c/d}& & 2,000& \text{Mar}31& \text{Depreciation A/c}& & 2,000\\ & & & \overline{\underset{–}{\underset{–}{2,000}}}& & & & \overline{\underset{–}{\underset{–}{2,000}}}\\ 2014& & & & 2013& & & \\ \text{Mar}31& \text{Balance c/d}& & 3,800& \text{Apr}1& \text{Balance b/d}& & 2,000\\ & & & & 2014& & & \\ & & & & \text{Mar}31& \text{Depreciation A/c}& & 1,800\\ & & & \overline{\underset{–}{\underset{–}{3,800}}}& & & & \overline{\underset{–}{\underset{–}{3,800}}}\\ 2015& & & & 2014& & & \\ \text{Mar}31& \text{Balance c/d}& & 5,420& \text{Apr}1& \text{Balance b/d}& & 3,800\\ & & & & 2015& & & \\ & & & & \text{Mar}31& \text{Depreciation A/c}& & 1,620\\ & & & \overline{\underset{–}{\underset{–}{5,420}}}& & & & \overline{\underset{–}{\underset{–}{5,420}}}\\ 2016& & & & 2015& & & \\ \text{Mar}31& \text{Balance c/d}& & 6,878& \text{Apr}1& \text{Balance b/d}& & 5,420\\ & & & & 2016& & & \\ & & & & \text{Mar}31& \text{Depreciation A/c}& & 1,458\\ & & & \overline{\underset{–}{\underset{–}{6,878}}}& & & & \overline{\underset{–}{\underset{–}{6,878}}}\end{array}$