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On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.?
Most Upvoted Answer
On January 1,2013, a limited company purchases machinery worth of 1,00...
Deprication of 2013- 1,00,000×10/100×6/12 =5000
". of 2014-1,00,000×10/100×12/12=10000
". of 2015-1,00,000×10/100×12/12=10000
of 2016-1,00,000×10/100×6/12=5000
total depreciation=5000+10000+10000+5000=30000
additional machinery purachase=46000--4000=42000
note: 4000 is for erection of machinery .
deprication of 2014-. 42000×10/100×6/12=2100
deprication of 2015-. 42000×10/100×12/12=4200
deprication of 2016-. 42000×10/100×6/12=2100
total depreciation= 2100+4200+2100=8400
(first machine) recent value of machinery=100000-30000=70000
(second machine) recent value of machinery=42000-8400=33600.
". of 2014-1,00,000×10/100×12/12=10000
". of 2015-1,00,000×10/100×12/12=10000
of 2016-1,00,000×10/100×6/12=5000
total depreciation=5000+10000+10000+5000=30000
additional machinery purachase=46000--4000=42000
note: 4000 is for erection of machinery .
deprication of 2014-. 42000×10/100×6/12=2100
deprication of 2015-. 42000×10/100×12/12=4200
deprication of 2016-. 42000×10/100×6/12=2100
total depreciation= 2100+4200+2100=8400
(first machine) recent value of machinery=100000-30000=70000
(second machine) recent value of machinery=42000-8400=33600.
Community Answer
On January 1,2013, a limited company purchases machinery worth of 1,00...
Machinery Account - Straight Line Method
Year 2013-2014:
Machinery purchased on January 1, 2013: $100,000
Depreciation for 6 months (January 1, 2013, to June 30, 2013): $10,000 (10% of $100,000)
Machinery value as of June 30, 2014: $90,000 ($100,000 - $10,000)
Year 2014-2015:
Additional machinery purchased on July 1, 2014: $46,000
Machinery value as of June 30, 2015: $136,000 ($90,000 + $46,000)
Depreciation for the year (July 1, 2014, to June 30, 2015): $13,600 (10% of $136,000)
Machinery value as of June 30, 2015: $122,400 ($136,000 - $13,600)
Year 2015-2016:
Depreciation for the year (July 1, 2015, to June 30, 2016): $12,240 (10% of $122,400)
Machinery value as of June 30, 2016: $110,160 ($122,400 - $12,240)
Machinery Account - Reducing Instalment Method
Year 2013-2014:
Machinery purchased on January 1, 2013: $100,000
Depreciation for the year (January 1, 2013, to June 30, 2013): $10,000 (10% of $100,000)
Machinery value as of June 30, 2014: $90,000 ($100,000 - $10,000)
Year 2014-2015:
Additional machinery purchased on July 1, 2014: $46,000
Machinery value as of June 30, 2015: $136,000 ($90,000 + $46,000)
Depreciation for the year (July 1, 2014, to June 30, 2015): $13,600 (10% of $136,000)
Machinery value as of June 30, 2015: $122,400 ($136,000 - $13,600)
Year 2015-2016:
Depreciation for the year (July 1, 2015, to June 30, 2016): $12,240 (10% of $122,400)
Machinery value as of June 30, 2016: $110,160 ($122,400 - $12,240)
Explanation:
- The straight-line method of
Year 2013-2014:
Machinery purchased on January 1, 2013: $100,000
Depreciation for 6 months (January 1, 2013, to June 30, 2013): $10,000 (10% of $100,000)
Machinery value as of June 30, 2014: $90,000 ($100,000 - $10,000)
Year 2014-2015:
Additional machinery purchased on July 1, 2014: $46,000
Machinery value as of June 30, 2015: $136,000 ($90,000 + $46,000)
Depreciation for the year (July 1, 2014, to June 30, 2015): $13,600 (10% of $136,000)
Machinery value as of June 30, 2015: $122,400 ($136,000 - $13,600)
Year 2015-2016:
Depreciation for the year (July 1, 2015, to June 30, 2016): $12,240 (10% of $122,400)
Machinery value as of June 30, 2016: $110,160 ($122,400 - $12,240)
Machinery Account - Reducing Instalment Method
Year 2013-2014:
Machinery purchased on January 1, 2013: $100,000
Depreciation for the year (January 1, 2013, to June 30, 2013): $10,000 (10% of $100,000)
Machinery value as of June 30, 2014: $90,000 ($100,000 - $10,000)
Year 2014-2015:
Additional machinery purchased on July 1, 2014: $46,000
Machinery value as of June 30, 2015: $136,000 ($90,000 + $46,000)
Depreciation for the year (July 1, 2014, to June 30, 2015): $13,600 (10% of $136,000)
Machinery value as of June 30, 2015: $122,400 ($136,000 - $13,600)
Year 2015-2016:
Depreciation for the year (July 1, 2015, to June 30, 2016): $12,240 (10% of $122,400)
Machinery value as of June 30, 2016: $110,160 ($122,400 - $12,240)
Explanation:
- The straight-line method of
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On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.?
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On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? 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 January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.?.
On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? 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 January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.?.
Solutions for On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? in English & in Hindi are available as part of our courses for B Com.
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On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.?, a detailed solution for On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? has been provided alongside types of On January 1,2013, a limited company purchases machinery worth of 1,00,000. On July 1, 2014, it buys additional machinery worth 46,000 and spends 4,000 on its erection. Its accounts are closed each year on 30th June. Assuming the annual depreciation to be 10 per cent, show the Machinery Account up to 30th June, 2016, under (a) the straight me method and (b) reducing instalment method.? theory, EduRev gives you an
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