Commerce Exam > Commerce Questions > M/ s golden Ltd purchased a mechine for rs 3,...
Start Learning for Free
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years
?
Most Upvoted Answer
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and s...
Machine A/c
Date Particulars Amount (Rs.)
1.10.2014 Machine Purchase A/c 3,60,000
1.10.2014 Transportation A/c 40,000
Total: 4,00,000
1.4.2015 Depreciation A/c 40,000
31.3.2016 Depreciation A/c 40,000
31.3.2017 Depreciation A/c 40,000
Total: 1,20,000
Balance c/d 2,80,000
Total: 4,00,000
Depreciation A/c
Date Particulars Amount (Rs.)
1.4.2015 Machine A/c 40,000
31.3.2016 Machine A/c 40,000
31.3.2017 Machine A/c 40,000
Total: 1,20,000
Balance c/d 1,20,000
Total: 1,20,000
Explanation:
1. On 1.10.2014, M/s Golden Ltd purchased a machine for Rs 3,60,000 and spent Rs 40,000 for its transportation. Therefore, the total cost of the machine is Rs 4,00,000.
2. The company charges depreciation at the rate of 10% p.a on the straight-line method every year. Straight-line method means that the depreciation is charged at a fixed rate on the original cost of the machine.
3. The book of accounts is closed on 31st March every year. Therefore, the depreciation for the first year will be charged on 1.4.2015, the depreciation for the second year will be charged on 31.3.2016, and the depreciation for the third year will be charged on 31.3.2017.
4. The depreciation for each year is calculated as 10% of the original cost of the machine, which is Rs 4,00,000. Therefore, the depreciation for each year is Rs 40,000.
5. The Machine A/c is debited with the cost of the machine and transportation on 1.10.2014. The Depreciation A/c is debited with the depreciation amount for each year.
6. The balance c/d in the Machine A/c represents the remaining value of the machine after charging depreciation for the respective years. The balance c/d in the Depreciation A/c represents the total depreciation charged for the respective years.
7. After charging depreciation for the first three years, the remaining value of the machine is Rs 2,80,000, which is shown as the balance c/d in the Machine A/c. The total depreciation charged for the first three years is Rs 1,20,000, which is shown as the balance c/d in the Depreciation A/c.
Date Particulars Amount (Rs.)
1.10.2014 Machine Purchase A/c 3,60,000
1.10.2014 Transportation A/c 40,000
Total: 4,00,000
1.4.2015 Depreciation A/c 40,000
31.3.2016 Depreciation A/c 40,000
31.3.2017 Depreciation A/c 40,000
Total: 1,20,000
Balance c/d 2,80,000
Total: 4,00,000
Depreciation A/c
Date Particulars Amount (Rs.)
1.4.2015 Machine A/c 40,000
31.3.2016 Machine A/c 40,000
31.3.2017 Machine A/c 40,000
Total: 1,20,000
Balance c/d 1,20,000
Total: 1,20,000
Explanation:
1. On 1.10.2014, M/s Golden Ltd purchased a machine for Rs 3,60,000 and spent Rs 40,000 for its transportation. Therefore, the total cost of the machine is Rs 4,00,000.
2. The company charges depreciation at the rate of 10% p.a on the straight-line method every year. Straight-line method means that the depreciation is charged at a fixed rate on the original cost of the machine.
3. The book of accounts is closed on 31st March every year. Therefore, the depreciation for the first year will be charged on 1.4.2015, the depreciation for the second year will be charged on 31.3.2016, and the depreciation for the third year will be charged on 31.3.2017.
4. The depreciation for each year is calculated as 10% of the original cost of the machine, which is Rs 4,00,000. Therefore, the depreciation for each year is Rs 40,000.
5. The Machine A/c is debited with the cost of the machine and transportation on 1.10.2014. The Depreciation A/c is debited with the depreciation amount for each year.
6. The balance c/d in the Machine A/c represents the remaining value of the machine after charging depreciation for the respective years. The balance c/d in the Depreciation A/c represents the total depreciation charged for the respective years.
7. After charging depreciation for the first three years, the remaining value of the machine is Rs 2,80,000, which is shown as the balance c/d in the Machine A/c. The total depreciation charged for the first three years is Rs 1,20,000, which is shown as the balance c/d in the Depreciation A/c.
Community Answer
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and s...
15000
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
|
|
Top Courses for CommerceView all
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves?
Question Description
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves?.
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves?.
Solutions for M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? 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 M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? defined & explained in the simplest way possible. Besides giving the explanation of
M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves?, a detailed solution for M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? has been provided alongside types of M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? theory, EduRev gives you an
ample number of questions to practice M/ s golden Ltd purchased a mechine for rs 3,60,000 on 1.10.2014 and spent rs 40,000 for its transportation .On 01.10.2014 for rs 2,95,000 . Company charges depreciation at the rate of 10% p.a on stright line method every year .The book of account are. closed on 31st March every year. prepare machine a/c and depreciation a/c for first 3 years Related: NCERT Solution (Part - 1) - Depreciation, Provisions and Reserves? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup