Question

M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2011 for Rs 1,00,000. On July 01, 2012 another machine costing Rs 2,50,000 was purchased. The machine purchased on April 01, 2011 was sold for Rs 25,000 on October 01, 2015. The company charges depreciation @15% p.a. on straight line method. Prepare machinery account and machinery disposal account for the year ended March 31, 2016.

Answer 1

Books of M/s. Lokesh Fabrics
Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2011				2012
Apr.01	Bank (i)		1,00,000	Mar.31	Depreciation		15,000
				Mar.31	Balance c/d		85,000
			1,00,000				1,00,000
2012				2013
Apr.01	Balance b/d		85,000	Mar.31	Depreciation
July.01	Bank (ii)		2,50,000		(i) 15,000 + 28,125		43,125
				Mar.31	Balance c/d
					(i) 70,000, (ii) 2,21,875		2,91,875
			3,35,000				3,35,000
2013				2014
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 70,000, (ii) 2,21,875		2,91,875		(i) 15,000, (ii) 37,500		52,500
				Mar.31	Balance c/d
					(i) 55,000, (ii) 1,84,375		2,39,375
			2,91,875				2,91,875
2014				2015
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 5,500, (ii) 1,84,375		2,39,375		(i) 15,000, (ii) 37,500		52,500
				Mar.31	Balance c/d
					(i) 40,000, (ii) 1,46,875		1,86,875
			2,39,375				2,39,375
2015				2015
Apr.01	Balance b/d			Oct.01	Depreciation		7,500
	(i) 40,000, (ii) 1,46,875		1,86,875	Oct.01	Machinery Disposal		32,500
				2016
				Mar.31	Depreciation (ii)		37,500
				Mar.31	Balance c/d		1,09,375
			1,86,875				1,86,875

Machinery Disposal Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2015				2015
Oct.01	Machinery		32,500	Oct.01	Bank		25,000
				Oct.01	Profit and Loss		7,500
			32,500				32,500