Question

Kapil Ltd. purchased a machinery on July 01, 2011 for Rs 3,50,000. It purchased two additional machines, on April 01, 2012 costing Rs 1,50,000 and on October 01, 2012 costing Rs 1,00,000. Depreciation is provided @10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold for Rs 1,00,000, prepare machinery account for 4 years on the basis of calendar year.

Answer 1

Books of Kapil Ltd. Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2011
Jul.01	Bank (i)		3,50,000	Dec.31	Depreciation (6 months)		17,500
				Dec.31	Balance c/d		3,32,500
			3,50,000				3,50,000
2012				2012
Jan.01	Balance c/d		3,32,500	Dec.31	Depreciation
Apr.01	Bank (ii)		1,50,000		(i) 35,000 (ii) 11,250 (9 months),
Oct.01	Bank (iii)		1,00,000		(iii) 2,500 (3 months)		48,750
				Dec.31	Balance c/d
					(i) 2,97,500, (ii) 1,38,750,
					(iii) 97,500		5,33,750
			5,82,500				5,82,500
2013				2013
Jan.01	(i) 2,97,500, (ii) 1,38,750,			Jan.01	Bank (i)		1,00,000
	(iii) 97,500		5,33,750	Jan.01	Profit and Loss (Loss)		1,97,500
				Dec.31	Depreciation
					(ii) 15,000 (iii) 10,000		25,000
				Dec.31	Balance c/d
					(ii) 1,23,750, (iii) 87,500		2,11,250
			5,33,750				4,33,750
2014				2014
Jan.01	Balance c/d		2,11,250	Dec.31	Depreciation
	(ii) 1,23,750, (iii) 87,500			Dec.31	(ii) 15,000, (iii) 10,000		25,000
					Balance c/d
					(ii) 1,08,750, (iii) 77,500		1,86,250
			2,11,250				2,11,250
2015
Jan.01	Balance b/d		1,86,250