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LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014 Machine wa purchased for Ra.50,000. On 30-09-2015 Machine 'A' was sokd for Ra75,000. It was decided to depreciate the machines10pa under Diminishing Balance Method Prepare Machinery A/e And Depreciation A/e for 4 years?
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LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014...
Machinery Account for LTC Ltd.
- Purchase of Machine A
- Date: 01-04-2013
- Cost: Rs. 1,00,000
- Purchase of Machine B
- Date: 01-10-2014
- Cost: Rs. 50,000
- Sale of Machine A
- Date: 30-09-2015
- Sale Price: Rs. 75,000
Depreciation Calculation
- Depreciation Rate: 10% per annum using the Diminishing Balance Method.
- Depreciation for Machine A:
- Year 1 (2013-14):
- Depreciation = 10% of Rs. 1,00,000 = Rs. 10,000
- WDV = Rs. 1,00,000 - Rs. 10,000 = Rs. 90,000
- Year 2 (2014-15):
- Depreciation = 10% of Rs. 90,000 = Rs. 9,000
- WDV = Rs. 90,000 - Rs. 9,000 = Rs. 81,000
- Year 3 (2015-16):
- Machine A is sold on 30-09-2015, thus depreciation for half year (April to September):
- Depreciation = 10% of Rs. 81,000 * 6/12 = Rs. 4,050
- Depreciation for Machine B (since purchased on 01-10-2014):
- Year 2 (2014-15):
- Depreciation = 10% of Rs. 50,000 = Rs. 5,000
- Year 3 (2015-16):
- Depreciation = 10% of Rs. 50,000 = Rs. 5,000
Depreciation Account Summary
- Depreciation for Machine A:
- Year 1: Rs. 10,000
- Year 2: Rs. 9,000
- Year 3: Rs. 4,050
- Depreciation for Machine B:
- Year 2: Rs. 5,000
- Year 3: Rs. 5,000
Conclusion
The Machinery Account reflects the initial purchase, additional purchase, and the sale, while the Depreciation Account summarizes the annual depreciation amounts. This method ensures that the asset's value is accurately represented on the balance sheet over time, adhering to accounting principles.
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LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014 Machine wa purchased for Ra.50,000. On 30-09-2015 Machine 'A' was sokd for Ra75,000. It was decided to depreciate the machines10pa under Diminishing Balance Method Prepare Machinery A/e And Depreciation A/e for 4 years?
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LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014 Machine wa purchased for Ra.50,000. On 30-09-2015 Machine 'A' was sokd for Ra75,000. It was decided to depreciate the machines10pa under Diminishing Balance Method Prepare Machinery A/e And Depreciation A/e for 4 years? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014 Machine wa purchased for Ra.50,000. On 30-09-2015 Machine 'A' was sokd for Ra75,000. It was decided to depreciate the machines10pa under Diminishing Balance Method Prepare Machinery A/e And Depreciation A/e for 4 years? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for LTC LAd purchased Machine for Rs.1.00.000 on 01-04-2013. On 01-10-2014 Machine wa purchased for Ra.50,000. On 30-09-2015 Machine 'A' was sokd for Ra75,000. It was decided to depreciate the machines10pa under Diminishing Balance Method Prepare Machinery A/e And Depreciation A/e for 4 years?.
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