Question

The Machinery account shows a debit balance of Rs 30,000 on 1st April 2010 in the books of Ramesh Traders. The Machinery was original purchased on 1st Apil 2010 a new Machinery was purchased for Rs 45,000 On 1st July 2010 additional Machinery was purchased for Rs 16,000

Answer 1

The above question is incomplete. Hence, could not be solved. But, it can be solved, if we make the following assumptions as per the solution given in the book.

1. Rate of Depreciation is 10% p.a.
2. Machinery is purchased on April 1, 2010, for Rs 30,000 and sold at the end of the year for Rs 24,500.

Machinery Account
Dr.								Cr.
Date		Particulars	Amount (Rs)	Date	Particulars		Amount (Rs)
2010				2011
Apr 1		Bank A/c (M1)	30,000	Mar 31	Depreciation A/c
Apr 1		Bank A/c (M2)	45,000		M1	3,000
July 1		Bank A/c (M3)	16,000		M2	4,500
					M3 (for 9 months)	1,200	8,700
				Mar 31	Bank A/c (Sale value)		24,500
				Mar 31	Profit and Loss A/c (Loss on sale of machinery)		2,500
				Mar 31	Balance c/d
					M2 (45,000 – 4,500)	40,500
					M3 (16,000 – 1,200)	14,800	55,300
			91,000				91,000