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On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each year.?
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On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st Octobe...
On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each year.
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On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st Octobe...
Machinery Accounting for the period 2007 to 31/3/2011

1. Purchase of Machinery in 2007
On 1/7/2007, Z Ltd purchased machinery costing Rs. 108,000.

2. Calculation of Annual Depreciation
Depreciation is charged at the rate of 10% per annum on the straight-line method.
Annual Depreciation = Cost of Machinery * Depreciation Rate
Annual Depreciation = Rs. 108,000 * 10% = Rs. 10,800

3. Depreciation for the Year 2007
The machinery was purchased on 1/7/2007, so the depreciation for the year 2007 will be calculated from the date of purchase to 31/12/2007.
Depreciation for 2007 = (Purchase Cost / Total Days) * Depreciation Days
Depreciation for 2007 = (Rs. 108,000 / 365) * (365 - 183)
Depreciation for 2007 = Rs. 54,000

4. Depreciation for the Year 2008
Depreciation for 2008 = Annual Depreciation = Rs. 10,800

5. Depreciation for the Year 2009
Depreciation for 2009 = Annual Depreciation = Rs. 10,800

6. Depreciation for the Year 2010
Depreciation for 2010 = Annual Depreciation = Rs. 10,800

7. Sale of Machinery in 2010
On 1st October 2010, the company sold 1/4 part of the machinery for Rs. 5,000.

8. Depreciation for the Year 2011
Depreciation for 2011 = Annual Depreciation = Rs. 10,800

9. Closing Machinery Account
The machinery account is closed on 31st December for each year. Therefore, the machinery account will be closed on 31/12/2007, 31/12/2008, 31/12/2009, 31/12/2010, and 31/12/2011.

Summary of Machinery Account

Year | Opening Balance | Depreciation | Sale | Closing Balance
2007 | Rs. 108,000 | Rs. 54,000 | - | Rs. 54,000
2008 | Rs. 54,000 | Rs. 10,800 | - | Rs. 43,200
2009 | Rs. 43,200 | Rs. 10,800 | - | Rs. 32,400
2010 | Rs. 32,400 | Rs. 10,800 | Rs. 5,000 | Rs. 17,600
2011 | Rs. 17,600 | Rs. 10,800 | - | Rs. 6,800

Note: The closing balance of Rs. 6,800 on 31/3
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On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each year.?
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On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each 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 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each year.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1/7/2007, Z .Ltd purchased machinery costing 108,000. on 1st October 2010 company sold 1/4 part of of machinery for Rs.5,000 . prepare machinery accounting for 2007 to 31/3/2011. while depreciation charged on assessed 10%p.a. on straight line method. company closed his account 31st December for each year.?.
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