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a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base
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a limited purchase machinery for 50000 on 1st January 2010 further add...
Machinery Account for 3 years ending 31 December 2012:
1. Acquisition of Machinery:
On 1st January 2010, a machinery was purchased for $50,000. Further additions were made on 1st July 2010 and 1st April 2011, amounting to $40,000 and $30,000 respectively. On 1st October 2012, the first machinery was sold for $28,500 and a new machinery was purchased for $60,000.
2. Calculation of Depreciation:
Depreciation is to be charged at a rate of 10% per annum on the straight-line basis. This means that the depreciation expense will be calculated by dividing the cost of the machinery by its estimated useful life, and then multiplying it by the number of years it has been in use.
3. Machinery Account:
The machinery account will be prepared to record the transactions related to the acquisition, disposal, and depreciation of the machinery.
3.1 Opening Balance:
Date: 1st January 2010
Description: By Machinery (Opening Balance)
Debit: $50,000
Credit: -
3.2 Addition of Machinery:
Date: 1st July 2010
Description: By Machinery (Addition)
Debit: $40,000
Credit: -
Date: 1st April 2011
Description: By Machinery (Addition)
Debit: $30,000
Credit: -
3.3 Sale of Machinery:
Date: 1st October 2012
Description: By Bank (Sale Proceeds)
Debit: -
Credit: $28,500
3.4 Purchase of New Machinery:
Date: 1st October 2012
Description: By Machinery (New Purchase)
Debit: $60,000
Credit: -
3.5 Depreciation:
Depreciation will be charged on the machinery based on its cost and estimated useful life. The machinery has been in use for 3 years.
Depreciation Expense for 2010:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 1 = $5,000
Depreciation Expense for 2011:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 2 = $10,000
Depreciation Expense for 2012:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 3 = $15,000
3.6 Closing Balance:
Date: 31st December 2012
Description: By Depreciation Expense (2012)
Debit: -
Credit: $15,000
Date: 31st December 2012
Description: By Balance c/d
Debit: -
Credit: ($75,000 + $5,000 + $10,000) - ($28,500 + $60,000 + $15,000)
4. Summary:
1. Acquisition of Machinery:
On 1st January 2010, a machinery was purchased for $50,000. Further additions were made on 1st July 2010 and 1st April 2011, amounting to $40,000 and $30,000 respectively. On 1st October 2012, the first machinery was sold for $28,500 and a new machinery was purchased for $60,000.
2. Calculation of Depreciation:
Depreciation is to be charged at a rate of 10% per annum on the straight-line basis. This means that the depreciation expense will be calculated by dividing the cost of the machinery by its estimated useful life, and then multiplying it by the number of years it has been in use.
3. Machinery Account:
The machinery account will be prepared to record the transactions related to the acquisition, disposal, and depreciation of the machinery.
3.1 Opening Balance:
Date: 1st January 2010
Description: By Machinery (Opening Balance)
Debit: $50,000
Credit: -
3.2 Addition of Machinery:
Date: 1st July 2010
Description: By Machinery (Addition)
Debit: $40,000
Credit: -
Date: 1st April 2011
Description: By Machinery (Addition)
Debit: $30,000
Credit: -
3.3 Sale of Machinery:
Date: 1st October 2012
Description: By Bank (Sale Proceeds)
Debit: -
Credit: $28,500
3.4 Purchase of New Machinery:
Date: 1st October 2012
Description: By Machinery (New Purchase)
Debit: $60,000
Credit: -
3.5 Depreciation:
Depreciation will be charged on the machinery based on its cost and estimated useful life. The machinery has been in use for 3 years.
Depreciation Expense for 2010:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 1 = $5,000
Depreciation Expense for 2011:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 2 = $10,000
Depreciation Expense for 2012:
Calculation: (Cost of Machinery / Estimated Useful Life) * Number of Years in Use
Depreciation Expense = ($50,000 / 10) * 3 = $15,000
3.6 Closing Balance:
Date: 31st December 2012
Description: By Depreciation Expense (2012)
Debit: -
Credit: $15,000
Date: 31st December 2012
Description: By Balance c/d
Debit: -
Credit: ($75,000 + $5,000 + $10,000) - ($28,500 + $60,000 + $15,000)
4. Summary:
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a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base
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a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base.
a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base.
Solutions for a limited purchase machinery for 50000 on 1st January 2010 further addition were made on 1st July 2010 and 1st April 2011 40000 and 30000 respectively on 1st October 2012 1st machinery was sold for 28500 and new machinery was purchased for 60000 prepare a machinery account for 3 year ending 31 December 2012 is depreciation is to be charged 10% per annum on stateline base in English & in Hindi are available as part of our courses for Class 11.
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