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M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.?
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M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,...
Machinery Account
2015
- Opening balance: `0
- Purchase on 1st January: `2,00,000
- Purchase on 1st July: `1,00,000
- Total: `3,00,000
2016
- Depreciation on 31st December 2015: `3,00,000 * 10% = `30,000
- Closing balance: `3,00,000 - `30,000 = `2,70,000
Machinery Disposal Account
2016
- Sale of machinery on 1st July: `80,000
- Loss on sale: `2,00,000 - `80,000 = `1,20,000
Provision for Depreciation Account
2015
- Depreciation on machinery purchased on 1st January: `2,00,000 * 10% = `20,000
- Depreciation on machinery purchased on 1st July: `1,00,000 * 10% = `10,000
- Total: `30,000
2016
- Closing balance: `30,000
Explanation:
1. The Machinery Account records the details of machinery purchased, depreciation charged, and the closing balance.
2. In 2015, the opening balance is `0 as there were no machinery purchases before this year. The machinery purchased on 1st January is added to the account, followed by the purchase on 1st July. The total value of machinery becomes `3,00,000 at the end of 2015.
3. In 2016, depreciation is charged on the total value of machinery at the rate of 10%. The depreciation amount is calculated and deducted from the total value to obtain the closing balance of `2,70,000.
4. The Machinery Disposal Account records the sale of machinery and the loss incurred on the sale. In 2016, the machinery purchased on 1st January becomes obsolete and is sold for `80,000. The loss on sale is calculated as the difference between the original cost of `2,00,000 and the selling price of `80,000, which is `1,20,000.
5. The Provision for Depreciation Account records the depreciation charged on the machinery. In 2015, depreciation is charged on both machinery purchases, resulting in a total depreciation of `30,000. In 2016, the closing balance of the provision remains the same at `30,000.
2015
- Opening balance: `0
- Purchase on 1st January: `2,00,000
- Purchase on 1st July: `1,00,000
- Total: `3,00,000
2016
- Depreciation on 31st December 2015: `3,00,000 * 10% = `30,000
- Closing balance: `3,00,000 - `30,000 = `2,70,000
Machinery Disposal Account
2016
- Sale of machinery on 1st July: `80,000
- Loss on sale: `2,00,000 - `80,000 = `1,20,000
Provision for Depreciation Account
2015
- Depreciation on machinery purchased on 1st January: `2,00,000 * 10% = `20,000
- Depreciation on machinery purchased on 1st July: `1,00,000 * 10% = `10,000
- Total: `30,000
2016
- Closing balance: `30,000
Explanation:
1. The Machinery Account records the details of machinery purchased, depreciation charged, and the closing balance.
2. In 2015, the opening balance is `0 as there were no machinery purchases before this year. The machinery purchased on 1st January is added to the account, followed by the purchase on 1st July. The total value of machinery becomes `3,00,000 at the end of 2015.
3. In 2016, depreciation is charged on the total value of machinery at the rate of 10%. The depreciation amount is calculated and deducted from the total value to obtain the closing balance of `2,70,000.
4. The Machinery Disposal Account records the sale of machinery and the loss incurred on the sale. In 2016, the machinery purchased on 1st January becomes obsolete and is sold for `80,000. The loss on sale is calculated as the difference between the original cost of `2,00,000 and the selling price of `80,000, which is `1,20,000.
5. The Provision for Depreciation Account records the depreciation charged on the machinery. In 2015, depreciation is charged on both machinery purchases, resulting in a total depreciation of `30,000. In 2016, the closing balance of the provision remains the same at `30,000.
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M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.?
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M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.? 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 M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.?.
M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.? 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 M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.?.
Solutions for M/s Gupta Brothers purchased on 1st January, 2015 a Machinery for ` 2,00,000. On 1st July, 2015 an additional Machinery was purchased for ` 1,00,000. On 1st July, 2016, the Machinery purchased on 1st January, 2015 became obsolete and was sold for ` 80,000. Depreciation is charged @ 10% per annum on the original cost on 31st December each year. Prepare (1) Machinery Account, (2) Machinery Disposal Account and (3) Provision for Depreciation Account for the years 2015 and 2016.? in English & in Hindi are available as part of our courses for Class 11.
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