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Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- on its erection on 1-4-2014 he purchased another machine worth 20000/-. On 31-12-2016, machinery purchased on 1-1-2013 become un suitable and sold for 5000/- prepare machinery account under fixed installment method, charging depreciation @ 10% p.a. on all. The machine up to 31-12-2016.?
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Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- ...
Machinery Account under Fixed Installment Method


Details of Machinery Purchased



  • 1-1-2013: Machine purchased for 35,000/-

  • 1-4-2014: Another machine purchased for 20,000/-



Expenses Incurred



  • Erection expenses of 5,000/- incurred on 1-1-2013



Depreciation Calculation



  • Depreciation charged at 10% p.a. on all machinery



Calculation of Annual Depreciation



  • Machine purchased on 1-1-2013: 3 years of depreciation @ 10% = 10,500/-

  • Machine purchased on 1-4-2014: 2 years of depreciation @ 10% = 4,000/-



Calculation of Written Down Value (WDV)



  • Machine purchased on 1-1-2013: 35,000/- - 10,500/- = 24,500/-

  • Machine purchased on 1-4-2014: 20,000/- - 4,000/- = 16,000/-



Sale of Machinery on 31-12-2016



  • Machine purchased on 1-1-2013 sold for 5,000/-



Machinery Account under Fixed Installment Method
















































DateParticularsAmountBalance
1-1-2013To Bank A/c40,000/-40,000/-
31-12-2013By Depreciation A/c3,500/-36,500/-
31-12-2014By Depreciation A/c3,650/-32,850/-
1-4-2014To Bank A/c20,000/-52,850/-
31-12-2015By Depreciation A/c5,285/-47,565/-
31-12-2016By Depreciation A/c4,756.50/-42,808.50/-
31-12-2016To Sale A/c5,000/-
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Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- ...
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Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- on its erection on 1-4-2014 he purchased another machine worth 20000/-. On 31-12-2016, machinery purchased on 1-1-2013 become un suitable and sold for 5000/- prepare machinery account under fixed installment method, charging depreciation @ 10% p.a. on all. The machine up to 31-12-2016.?
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Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- on its erection on 1-4-2014 he purchased another machine worth 20000/-. On 31-12-2016, machinery purchased on 1-1-2013 become un suitable and sold for 5000/- prepare machinery account under fixed installment method, charging depreciation @ 10% p.a. on all. The machine up to 31-12-2016.? 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 Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- on its erection on 1-4-2014 he purchased another machine worth 20000/-. On 31-12-2016, machinery purchased on 1-1-2013 become un suitable and sold for 5000/- prepare machinery account under fixed installment method, charging depreciation @ 10% p.a. on all. The machine up to 31-12-2016.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shankar purchased a machine on 1-1-2013 for 35,000/- and spent 5000/- on its erection on 1-4-2014 he purchased another machine worth 20000/-. On 31-12-2016, machinery purchased on 1-1-2013 become un suitable and sold for 5000/- prepare machinery account under fixed installment method, charging depreciation @ 10% p.a. on all. The machine up to 31-12-2016.?.
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