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

 

 

 

 

 

 

        

 

  • 7

MACHINERY 1

purchase price                                        54000

(+) installation charges                          6000

                                                                   ------------

 cost price as on 1-1-03                         60000

(-) depr. for the year ended 2003           6000

                                                                   --------------

cost price as on 1-1-04                           54000

(-) depr. for the year ended 2004             6000

                                                                    -------------

cost price as on 1-1-05                          48000

(-) depr. as on 31-3-05                             1500

                                                                ----------------

cost price as on 31-3-05                        46500

(-) sales price                                           36000

                                                               -----------------

loss on sale of machinery 1                  10500

                                                               -------------------  

MACHINERY 2

cost price as on 1-9-04                                                                      30000

(-) depr. for the year ended 2004 (30000X10/100X4/12)               1000

                                                                                                           -----------------

book value as on 1-1-05                                                                    29000

(-) depr. for the year ended 2005                                                       3000

                                                                                                             ----------------

cost price as on 1-1-06                                                                     26000

                                                                                                              ----------------

MACHINERY 3

cost price as on 31-3-05                                                                    80000

(-) depr. for the year ended 2005(80000X10/100X9/12)                6000

                                                                                                           ---------------

book value as on 1-1-06                                                                    74000

                                                                                                          -----------------

i've sent the working note. u can easily prepare the machinery account with the help of it!..

  • 5

 @vandana

  gr8!!!!

  • 0
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