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On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.?
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On 1-1-92 a limited company purchased machinery and on 30-6-93 it acqu...
Ledger Accounts for Machinery
Purchase of Machinery on 1-1-92
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
1-1-92 Machinery A/c Dr. To Bank A/c 10,000 10,000 - -
Acquisition of Additional Machinery on 30-6-93
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
30-6-93 Machinery A/c Dr. To Bank A/c 2,000 2,000 - -
Depreciation on Machinery
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
31-3-93 Depreciation A/c Dr. To Machinery A/c 1,500 1,500 - -
Note: Depreciation for the year ending 31-3-93 is calculated as follows:
15% of Rs. 10,000 (original cost) = Rs. 1,500
Depreciation for the year ending 31-3-94 is calculated as follows:
15% of Rs. 8,500 (written down value) = Rs. 1,275
Sale of Obsolete Machinery and Replacement
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
31-3-94 Bank A/c Dr. To Machinery A/c (sold) To Depreciation A/c (loss on sale) 50 500 950 - - -
31-3-94 Machinery A/c Dr. To Bank A/c (replacement) 800 800 - -
Explanation
The above ledger accounts show the transactions related to machinery for the first two years, starting from the purchase on 1-1-92. The ledger account for the purchase of machinery shows that the company acquired machinery worth Rs. 10,000 on 1-1-92, which was paid through bank. The ledger account for the acquisition of additional machinery shows that the company acquired machinery worth Rs. 2,000 on 30-6-93, which was also paid through bank.
The ledger account for depreciation on machinery shows that the company provided for depreciation at the rate of 15% p.a. on the written down value. Depreciation for the year ending 31-3-93 was calculated on the original cost of machinery, which was Rs. 10,000. Depreciation for the year ending 31-3-94 was calculated on the written down value of machinery, which was Rs. 8,500.
The ledger accounts also show that on 31-3-94, the company sold one of the original machines for Rs. 50, which had become obsolete, and provided for loss on sale in the depreciation account. The machine was replaced by a new machine costing Rs. 800, which was paid through bank.
Purchase of Machinery on 1-1-92
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
1-1-92 Machinery A/c Dr. To Bank A/c 10,000 10,000 - -
Acquisition of Additional Machinery on 30-6-93
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
30-6-93 Machinery A/c Dr. To Bank A/c 2,000 2,000 - -
Depreciation on Machinery
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
31-3-93 Depreciation A/c Dr. To Machinery A/c 1,500 1,500 - -
Note: Depreciation for the year ending 31-3-93 is calculated as follows:
15% of Rs. 10,000 (original cost) = Rs. 1,500
Depreciation for the year ending 31-3-94 is calculated as follows:
15% of Rs. 8,500 (written down value) = Rs. 1,275
Sale of Obsolete Machinery and Replacement
Date Particulars L/F Amount (Rs.) Date Particulars L/F Amount (Rs.)
31-3-94 Bank A/c Dr. To Machinery A/c (sold) To Depreciation A/c (loss on sale) 50 500 950 - - -
31-3-94 Machinery A/c Dr. To Bank A/c (replacement) 800 800 - -
Explanation
The above ledger accounts show the transactions related to machinery for the first two years, starting from the purchase on 1-1-92. The ledger account for the purchase of machinery shows that the company acquired machinery worth Rs. 10,000 on 1-1-92, which was paid through bank. The ledger account for the acquisition of additional machinery shows that the company acquired machinery worth Rs. 2,000 on 30-6-93, which was also paid through bank.
The ledger account for depreciation on machinery shows that the company provided for depreciation at the rate of 15% p.a. on the written down value. Depreciation for the year ending 31-3-93 was calculated on the original cost of machinery, which was Rs. 10,000. Depreciation for the year ending 31-3-94 was calculated on the written down value of machinery, which was Rs. 8,500.
The ledger accounts also show that on 31-3-94, the company sold one of the original machines for Rs. 50, which had become obsolete, and provided for loss on sale in the depreciation account. The machine was replaced by a new machine costing Rs. 800, which was paid through bank.
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On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.?
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On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.?.
On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1-1-92 a limited company purchased machinery and on 30-6-93 it acquired additional machinery at a cost of Rs. 2,000. On 31-3-94, one of the original machines which had cost Rs. 500 was found to have become obsolete and was sold as scrap for Rs. 50. It was replaced on that date by a new machine costing Rs. 800. Depreciation is to be provided at the rate of 15% p.a. on the written down value: Show ledger accounts for the first two years.?.
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