B Com Exam  >  B Com Questions  >  A machine was purchasedon 1.1.2001 for Rs 500... Start Learning for Free
A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.?
Most Upvoted Answer
A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another m...
Machinery Account for 2001 and 2002:

Machinery Account

Date | Particulars | Amount | Date | Particulars | Amount
---- | ---------- | ------ | ---- | ---------- | ------
01.01.2001 | To Bank A/c | 500000 | | |
01.07.2001 | To Bank A/c | 300000 | | |
| | | 31.12.2001 | By Depreciation A/c | 75000
| | 800000 | 31.12.2002 | By Depreciation A/c | 135000
| | | | |
Total | | 800000 | Total | | 210000

Provision for Depreciation Account for 2001 and 2002:

Provision for Depreciation Account

Date | Particulars | Amount | Date | Particulars | Amount
---- | ---------- | ------ | ---- | ---------- | ------
31.12.2001 | To Machinery A/c | 75000 | | |
31.12.2002 | To Machinery A/c | 135000 | | |
| | | | |
Total | | 210000 | Total | | 210000

Machinery Account in Balance Sheet as on 2002:

Balance Sheet

Liabilities | Amount | Assets | Amount
---------- | ------ | ------ | ------
| | Machinery | 800000
| | Less: Provision for Depreciation | 210000
| | | |
| | Net Machinery | 590000
| | | |
Total | | Total | 590000

Explanation:

The Machinery Account shows the purchase of two machines on different dates and the amount of depreciation charged on them for two years. The provision for depreciation account shows the amount of depreciation charged on the machinery.

In the balance sheet, the machinery's net value is shown after deducting the provision for depreciation from the original cost. The provision for depreciation reduces the machinery's value in the balance sheet, and it is essential to maintain it for accurate financial reporting.

It is assumed that no provision for depreciation account is maintained, which is not recommended as it can lead to incorrect financial reporting and overvaluing of assets.
Explore Courses for B Com exam

Similar B Com Doubts

A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.?
Question Description
A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? 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 A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.?.
Solutions for A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? defined & explained in the simplest way possible. Besides giving the explanation of A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.?, a detailed solution for A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? has been provided alongside types of A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? theory, EduRev gives you an ample number of questions to practice A machine was purchasedon 1.1.2001 for Rs 500000 on 1.7.2001 another machine was purchased at Rs 300000 depreciation is to be provided at @ 10% p.a. under reducing balance method. You are required to show (i) machinery account for 2001 and 2002.(i) provision for depreciation account for 2001 and 2002. (i) How did the machinery account appear in the balance sheet as on 2002. (Assume that no provision for depreciation account is maintain.? tests, examples and also practice B Com tests.
Explore Courses for B Com exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev