On 1st January 1996 machinery was purchased for rupees 250000. On 1st ...
Missionary Account for Machinery from 1996-1999
I. Machinery Purchased on 1st January 1996
- Original Cost: Rs. 250000
- Depreciation @ 10% p.a.: Rs. 25000 (for the year 1996)
- Net Book Value as on 31st December 1996: Rs. 225000
II. Additions Made on 1st June 1997
- Cost of Machinery: Rs. 50000
- Depreciation @ 10% p.a.: Rs. 5000 (for the year 1997)
- Net Book Value as on 31st December 1997: Rs. 215000
III. Another Machinery Purchased on 1st March 1998
- Cost of Machinery: Rs. 32000
- Depreciation @ 10% p.a.: Rs. 3200 (for the year 1998)
- Net Book Value as on 31st December 1998: Rs. 201800
IV. Machinery Sold on 30th June 1999
- Original Cost: Rs. 40000
- Depreciation @ 10% p.a.: Rs. 4000 (up to 31st December 1998)
- Depreciation for the period from 1st January 1999 to 30th June 1999: Rs. 2000
- Book Value as on 30th June 1999: Rs. 34000
- Sale Value: Rs. 30000
- Loss on Sale: Rs. 4000
V. Closing the Accounts as on 31st December 1999
- Depreciation on Rs. 215000 @ 10% p.a.: Rs. 21500
- Net Book Value as on 31st December 1999: Rs. 193500
Explanation:
- The missionary account for machinery shows the purchase, additions, depreciation, sale, and net book value of machinery for a specific period.
- The original cost of machinery purchased on 1st January 1996 was Rs. 250000. Depreciation of Rs. 25000 was charged for the year 1996, and the net book value as on 31st December 1996 was Rs. 225000.
- Additions were made on 1st June 1997 by purchasing machinery for Rs. 50000. Depreciation of Rs. 5000 was charged for the year 1997, and the net book value as on 31st December 1997 was Rs. 215000.
- Another machinery was purchased on 1st March 1998 for Rs. 32000. Depreciation of Rs. 3200 was charged for the year 1998, and the net book value as on 31st December 1998 was Rs. 201800.
- Machinery of the original cost of Rs. 40000 on 1st January 1996 was sold for Rs. 30000 on 30th June 1999. The book value as on 30th June 1999 was Rs. 34000, and the loss on sale was Rs. 4000.
- The accounts were closed as on 31st December 1999, and the net book value of machinery was
On 1st January 1996 machinery was purchased for rupees 250000. On 1st ...