Kumar & company purchased a machinery on 1st january 2003 for rs.54000 and spent rs.6000 on its installation . On 1st september 2004 it purchased another machine for Rs.30000.
On 31st march 2005 the first machine purchased on 1st january 2003 is sold for rs.36000 and on the same date it purchased a new machinery for rs.80000.
On september 1,2006 the second machine purchased on september 1, 2004 was sold off for Rs.26000. Depreciation was provided on machinery @ 10% p.a. on original cost method annually on 31st december . give the machinery account from 2003 to 2006.
In the books Kumar Company Machinery Account | |||||||
Dr. |
| Cr. | |||||
Date | Particulars | Amount Rs | Date | Particulars | Amount Rs | ||
2003 |
|
| 2003 |
|
| ||
Jan.01 | Bank (i) | 60,000 | Dec.31 | Depreciation (i) | 6,000 | ||
|
|
| Dec.31 | Balance c/d | 54,000 | ||
|
| 60,000 |
|
| 60,000 | ||
|
|
|
|
|
| ||
2004 |
|
| 2004 |
|
| ||
Jan.01 | Balance b/d (i) | 54,000 | Dec.31 | Depreciation |
| ||
Sep.01 | Bank (ii) | 30,000 |
| (i) 6,000 |
| ||
|
|
|
| (ii) 1,000 (4 months) | 7,000 | ||
|
|
| Dec.31 | Balance c/d |
| ||
|
|
|
| (i) 48,000 |
| ||
|
|
|
| (ii) 29,000 | 77,000 | ||
|
| 84,000 |
|
| 84,000 | ||
|
|
|
|
|
| ||
2005 |
|
| 2005 |
|
| ||
Jan.01 | Balance c/d |
| March.31 | Depreciation (i) 3 months | 1,500 | ||
| (i) 48,000 |
| March.31 | Bank | 36,000 | ||
| (ii) 29,000 | 77,000 | March.31 | Profit and Loss (Loss) (48,000 – 1,500 – 36,000) | 10,500 | ||
March.31 | Bank (iii) | 80,000 | Dec.31 | Depreciation |
| ||
|
|
|
| (ii) 3,000 |
| ||
|
|
|
| (iii) 6,000 (9 months) | 9,000 | ||
|
|
| Dec.31 | Balance c/d |
| ||
|
|
|
| (ii) 26,000 |
| ||
|
|
|
| (iii) 74,000 | 1,00,000 | ||
|
| 1,57,000 |
|
| 1,57,000 | ||
|
|
|
|
|
| ||
2006 |
|
| 2006 |
|
| ||
Jan.01 | Balance b/d |
| Sep.01 | Depreciation (ii) 8 months | 2,000 | ||
| (i) 26,000 |
| Sep.01 | Bank (ii) | 26,000 | ||
| (ii) 74,000 | 1,00,000 | Dec.31 | Depreciation (iii) | 8,000 | ||
Sep.01 | Profit and Loss (Profit) | 2,000 |
| Balance c/d | 66,000 | ||
|
| 1,02,000 |
|
| 1,02,000 | ||
|
|
|
|
|
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