On 1st April 2010 plant and machinery was purchased for 1,20000 New ma...
Plant and Machinery Account
Year 1 (2010-2011)
- Opening Balance: 0
- 1st April 2010: Purchase of plant and machinery for 1,20,000
- Depreciation for the year: 10% of 1,20,000 = 12,000
- Closing Balance: 1,20,000 - 12,000 = 1,08,000
Year 2 (2011-2012)
- Opening Balance: 1,08,000
- 1st October 2010: Purchase of new machinery for 50,000
- 1st July 2011: Purchase of new machinery for 25,000
- Depreciation for the year: 10% of (1,08,000 + 50,000 + 25,000) = 18,300
- Closing Balance: 1,08,000 + 50,000 + 25,000 - 18,300 = 1,64,700
Year 3 (2012-2013)
- Opening Balance: 1,64,700
- 1st January 2013: Sale of machinery purchased on 1st April 2010 for 6,000
- Depreciation for the year: 10% of (1,64,700 - 6,000) = 15,570
- Closing Balance: 1,64,700 - 6,000 - 15,570 = 1,43,130
Year 4 (2013-2014)
- Opening Balance: 1,43,130
- Depreciation for the year: 10% of 1,43,130 = 14,313
- Closing Balance: 1,43,130 - 14,313 = 1,28,817
Year 5 (2014-2015)
- Opening Balance: 1,28,817
- Depreciation for the year: 10% of 1,28,817 = 12,882
- Closing Balance: 1,28,817 - 12,882 = 1,15,935
Year 6 (2015-2016)
- Opening Balance: 1,15,935
- Depreciation for the year: 10% of 1,15,935 = 11,594
- Closing Balance: 1,15,935 - 11,594 = 1,04,341
Year 7 (2016-2017)
- Opening Balance: 1,04,341
- Depreciation for the year: 10% of 1,04,341 = 10,434
- Closing Balance: 1,04,341 - 10,434 = 93,907
Year 8 (2017-2018)
- Opening Balance: 93,907
- Depreciation for the year: 10% of 93,907 = 9,391
- Closing Balance: 93,907 - 9,391 = 84,516
Year 9 (2018-201