wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

M/s Lokesh Fabrics purchased a Textile Machine on April 1, 2001, for Rs 1,00,000. On July 1, 2002, another machine costing Rs 2,50,000 was purchased. The machine purchased on April 1, 2001, was sold for Rs 25,000 on October 1, 2005. The company charges depreciation @ 15% per annum on the straight-line method. Prepare Machinery account and Machinery disposal account for the year ended March 31, 2006.

Open in App
Solution

Dr Machinery Account Cr
DateParticularsJFAmt.(Rs)DateParticularsJFAmt.(Rs)20012002Apr 1 Bank A/c (M1)1,00,000Mar 21 Depreciation A/c15,000 Balance c/d85,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,00,000––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,00,000––––––––20022003Apr 1 Balance b/dMar 31 Depreciation(M1)85,000A/cJul 1 Bank A/c M1=15,000(M2)2,50,000 M2=28,125––––––43,125Mar 31 Balance c/d M1= 70,000 M2=2,21,875––––––––2,91,875¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,35,000––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯3,35,000––––––––20032004Apr 1 Balance b/dMar 31 DepreciationA/cM1= 70,000 M1=15,000M2=2,21,875––––––––2,91,875 M2=37,500––––––52,500Mar 31 Balance c/d M1= 55,000 M2=1,84,375––––––––2,39,375¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,91,875––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,91,875––––––––20042005Apr 1 Balance b/dMar 31 DepreciationA/cM1= 55,000 M1=15,000M2=1,84,375––––––––2,39,375 M2=37,500––––––52,500Mar 31 Balance c/d M1= 40,000 M2=1,46,875––––––––1,86,875¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,39,375––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,39,375––––––––20052005Apr 1 Balance b/dOct 1DepreciationM1= 40,000A/c7,500M2=1,46,875––––––––1,86,875Oct 1 MachineryDisposal A/c32,500Oct 1 DepreciationA/c(M2)37,5002006Mar 31 Balance c/d(M2)1,09,375¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,86,875––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,86,875––––––––

Dr Machinery Disposal Account Cr
DateParticularsJFAmt.(Rs)DateParticularsJFAmt.(Rs)20052005Oct 1 Machinery A/c32,500Oct 1 Bank A/c25,000Oct 1 Profit&LossA/c 7,500¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯32,500––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯32,500––––––


flag
Suggest Corrections
thumbs-up
1
similar_icon
Similar questions
View More
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Identification and Comminution
CHEMISTRY
Watch in App
Join BYJU'S Learning Program
CrossIcon