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New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.?
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New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st ...
Machinery Account
Year 2018-19
- Opening Balance (1st April 2018): Rs. 90,000
- Additional Machinery purchased on 1st October 2018: Rs. 60,000
- Total Machinery: Rs. 1,50,000
Year 2019-20
- Depreciation for the year 2018-19 (10% of Rs. 1,50,000): Rs. 15,000
- Closing Balance (31st March 2019): Rs. 1,35,000
Year 2020-21
- Depreciation for the year 2019-20 (10% of Rs. 1,35,000): Rs. 13,500
- Closing Balance (31st March 2020): Rs. 1,21,500
Depreciation Account
Year 2018-19
- Depreciation for the year 2018-19: Rs. 15,000
Year 2019-20
- Depreciation for the year 2019-20: Rs. 13,500
Year 2020-21
- No depreciation as the Machinery was sold
Explanation:
The Machinery Account is prepared to record the purchase, depreciation, and sale of machinery. The Depreciation Account is prepared to record the depreciation expense for each year.
Year 2018-19:
- The opening balance of Machinery on 1st April 2018 is Rs. 90,000.
- Additional Machinery worth Rs. 60,000 is purchased on 1st October 2018.
- The total value of Machinery is Rs. 1,50,000.
Year 2019-20:
- Depreciation is charged at 10% of the opening balance of Machinery (Rs. 1,50,000).
- The depreciation expense for the year 2018-19 is Rs. 15,000.
- The closing balance of Machinery on 31st March 2019 is Rs. 1,35,000.
Year 2020-21:
- Depreciation is charged at 10% of the opening balance of Machinery (Rs. 1,35,000).
- The depreciation expense for the year 2019-20 is Rs. 13,500.
- The closing balance of Machinery on 31st March 2020 is Rs. 1,21,500.
- The Machinery purchased on 1st October 2018 is sold for Rs. 40,000.
Key Points:
- Machinery Account records the purchase, depreciation, and sale of machinery.
- Depreciation Account records the depreciation expense for each year.
- Depreciation is charged at 10% p.a. under the Straight Line Method.
- The Machinery purchased on 1st October 2018 is sold on 1st October 2020.
- The closing balance of Machinery is carried forward to the next year.
Year 2018-19
- Opening Balance (1st April 2018): Rs. 90,000
- Additional Machinery purchased on 1st October 2018: Rs. 60,000
- Total Machinery: Rs. 1,50,000
Year 2019-20
- Depreciation for the year 2018-19 (10% of Rs. 1,50,000): Rs. 15,000
- Closing Balance (31st March 2019): Rs. 1,35,000
Year 2020-21
- Depreciation for the year 2019-20 (10% of Rs. 1,35,000): Rs. 13,500
- Closing Balance (31st March 2020): Rs. 1,21,500
Depreciation Account
Year 2018-19
- Depreciation for the year 2018-19: Rs. 15,000
Year 2019-20
- Depreciation for the year 2019-20: Rs. 13,500
Year 2020-21
- No depreciation as the Machinery was sold
Explanation:
The Machinery Account is prepared to record the purchase, depreciation, and sale of machinery. The Depreciation Account is prepared to record the depreciation expense for each year.
Year 2018-19:
- The opening balance of Machinery on 1st April 2018 is Rs. 90,000.
- Additional Machinery worth Rs. 60,000 is purchased on 1st October 2018.
- The total value of Machinery is Rs. 1,50,000.
Year 2019-20:
- Depreciation is charged at 10% of the opening balance of Machinery (Rs. 1,50,000).
- The depreciation expense for the year 2018-19 is Rs. 15,000.
- The closing balance of Machinery on 31st March 2019 is Rs. 1,35,000.
Year 2020-21:
- Depreciation is charged at 10% of the opening balance of Machinery (Rs. 1,35,000).
- The depreciation expense for the year 2019-20 is Rs. 13,500.
- The closing balance of Machinery on 31st March 2020 is Rs. 1,21,500.
- The Machinery purchased on 1st October 2018 is sold for Rs. 40,000.
Key Points:
- Machinery Account records the purchase, depreciation, and sale of machinery.
- Depreciation Account records the depreciation expense for each year.
- Depreciation is charged at 10% p.a. under the Straight Line Method.
- The Machinery purchased on 1st October 2018 is sold on 1st October 2020.
- The closing balance of Machinery is carried forward to the next year.
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New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.?
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New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.?.
New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.?.
Solutions for New Trading Company, Mumbai purchased Machinery for Rs. 90,000 on 1st April 2018. On 1st October 2018 additional Machinery was purchased for Rs. 60,000. On 1st October 2020 the Company sold the Machinery purchased on 1st October 2018 for Rs. 40,000. Depreciation is to be charged at 10% p.a. under Straight Line Method on 31st March every year. Prepare Machinery Account and Depreciation Account for three years i.e. 2018-19, 2019-20 and 2020-21.? in English & in Hindi are available as part of our courses for Commerce.
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