Commerce Exam  >  Commerce Questions  >  Company purchased Machinery worth 5,00,000 on... Start Learning for Free
Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year?
Most Upvoted Answer
Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part o...
Machinery Account
- 1 Jan 2003: Machinery purchased worth 5,00,000
- 1 June 2005: Part of machinery costing 2,00,000 sold for 50,000

Depreciation Calculation:
- Depreciation Rate: 10% per annum on fixed value method
- Annual Depreciation: 5,00,000 * 10% = 50,000

Machinery Account for the year 2003:
- Opening Balance: 5,00,000
- Depreciation for 2003: 5,00,000 * 10% = 50,000
- Closing Balance: 5,00,000 - 50,000 = 4,50,000

Machinery Account for the year 2004:
- Opening Balance: 4,50,000
- Depreciation for 2004: 4,50,000 * 10% = 45,000
- Closing Balance: 4,50,000 - 45,000 = 4,05,000

Machinery Account for the year 2005:
- Opening Balance: 4,05,000
- Depreciation for 2005: 4,05,000 * 10% = 40,500
- Sale of Machinery: 2,00,000 - 50,000 = 1,50,000
- Closing Balance: 4,05,000 - 40,500 - 1,50,000 = 2,14,500

Explanation:
The machinery account shows the initial purchase of machinery, subsequent depreciation charges, and the sale of part of the machinery. The depreciation is calculated at a rate of 10% per annum on the fixed value method. The account is closed at the end of each year by deducting the depreciation amount. The sale of machinery is also accounted for in the final balance.
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
Explore Courses for Commerce exam

Similar Commerce Doubts

Top Courses for Commerce

Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year?
Question Description
Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year?.
Solutions for Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? defined & explained in the simplest way possible. Besides giving the explanation of Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year?, a detailed solution for Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? has been provided alongside types of Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? theory, EduRev gives you an ample number of questions to practice Company purchased Machinery worth 5,00,000 on 1 Jan 2003 & Sold part of machinery costing a 2,00,000 for 50,000, on 1 June 2005. make a machinery account till 31 december 2005 the depression Charged 10% per annum on fixed value meathod and accounts closed of 31 dec every year? tests, examples and also practice Commerce tests.
Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses
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