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On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 and spent rs.10,000 on its carriage and rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 year its scrap value will be rs.20,000. A. Prepare machine account for the first four years by providing depreciation on straight line method. accounts are closed on March 31st every year.
b. prepare machine account, depreciation account and provision for depreciation account for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year ?
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On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 ...
**A. Preparing Machine Account for the First Four Years**

To prepare the machine account for the first four years using the straight-line method, we need to calculate the annual depreciation expense based on the cost of the machine, its estimated working life, and the expected scrap value.

1. Determine the Cost of the Machine:
- Machine Cost: Rs. 2,80,000
- Carriage Cost: Rs. 10,000
- Installation Cost: Rs. 10,000
- Total Cost: Rs. 3,00,000

2. Determine the Annual Depreciation Expense:
- Depreciation Expense = (Total Cost - Scrap Value) / Working Life
- Depreciation Expense = (Rs. 3,00,000 - Rs. 20,000) / 10
- Depreciation Expense = Rs. 28,000 per year

3. Prepare the Machine Account:

| Year | Particulars | Rs. | Rs. |
|-------|--------------------------|------------------|------------------|
| 2010 | To Bank | 3,00,000 | |
| | By Machine | | 2,80,000 |
| | By Carriage | | 10,000 |
| | By Installation | | 10,000 |
| | | | |
| 2011 | To Depreciation | 28,000 | |
| | | | |
| 2012 | To Depreciation | 28,000 | |
| | | | |
| 2013 | To Depreciation | 28,000 | |
| | | | |
| 2014 | To Depreciation | 28,000 | |
| | By Scrap Value | | 20,000 |
| | By Profit & Loss A/c | | 20,000 |
| | | | |
| Total | | 3,00,000 | 3,00,000 |

**B. Preparing Machine Account, Depreciation Account, and Provision for Depreciation Account for the First Four Years**

In addition to the machine account, we also need to prepare the depreciation account and provision for depreciation account when using the straight-line method. These additional accounts help in tracking the depreciation expense and accumulating funds for future replacement or repairs.

1. Prepare the Depreciation Account:

| Year | Particulars | Rs. | Rs. |
|-------|--------------------|-----------|-----------|
| 2011 | To Machine A/c | 28,000 | |
| | | | |
| 2012 | To Machine A/c | 28,000 | |
| | | | |
| 2013 | To Machine A/c | 28,000 | |
| | | | |
| 2014 | To Machine A/c | 28,000 | |
| | | | |
| Total |
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On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 ...
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On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 and spent rs.10,000 on its carriage and rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 year its scrap value will be rs.20,000. A. Prepare machine account for the first four years by providing depreciation on straight line method. accounts are closed on March 31st every year. b. prepare machine account, depreciation account and provision for depreciation account for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year ?
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On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 and spent rs.10,000 on its carriage and rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 year its scrap value will be rs.20,000. A. Prepare machine account for the first four years by providing depreciation on straight line method. accounts are closed on March 31st every year. b. prepare machine account, depreciation account and provision for depreciation account for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 and spent rs.10,000 on its carriage and rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 year its scrap value will be rs.20,000. A. Prepare machine account for the first four years by providing depreciation on straight line method. accounts are closed on March 31st every year. b. prepare machine account, depreciation account and provision for depreciation account for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On April 01,2010, bajrang marbles purchased a machine for rs.2,80,000 and spent rs.10,000 on its carriage and rs. 10,000 on its installation. It is estimated that its working life is 10 years and after 10 year its scrap value will be rs.20,000. A. Prepare machine account for the first four years by providing depreciation on straight line method. accounts are closed on March 31st every year. b. prepare machine account, depreciation account and provision for depreciation account for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year ?.
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