Comprehensive questions and detailed answers for Unit 4: Depreciation Accounting (4Hrs). Perfect for exam preparation and concept clarity.
The transactions related to machinery are as under
01.07.2015 Purchased a machinery for Rs. 60,000.
01.01.2016 Purchased machinery for Rs. 40,000.
30.06.2019 Sold machinery purchased on 2015 for Rs. 48,235 and purchased next machinery Rs. 20,000
Accounts are closed on 31 December and rate of depreciation: 10%
Required: Machinery account for three years under reducing balance method
A company purchases a machinery at Rs. 5,00,000 on 1st January 2015. The company charged 10 percent depreciation under diminishing method. The machine has found unsuitable and sold at Rs. 2,40,000 on 1st July 2017. On the same date another machinery of costing Rs. 7,50,000 was purchased and charged 10 percent depreciation under diminishing depreciation method on 31st Dec. each year
Required: Machinery account from 2015 to 2017.