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On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was discovered during 2020-2021 that ` 1,00,000 being the cost of generator purchased on 1st Oct, 2018 had been written off to Stores. After rectification and depreciation @ 20% p.a. on reducing balances, Calculate the balance of Machinery A/c as at 31.03.2021?
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On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was dis...
Calculation of Balance of Machinery Account as at 31.03.2021

Given information:
- Balance of Machinery Account as at 01.04.2020 is `9,28,000.
- Cost of generator purchased on 01.10.2018 was written off to Stores for `1,00,000.
- Depreciation is charged at the rate of 20% p.a. on the reducing balance method.

Step 1: Rectification of the error
The cost of the generator, which was incorrectly written off to Stores, should be added back to the Machinery Account.

- Add the amount of `1,00,000 to the Machinery Account.
- The revised balance of the Machinery Account as at 01.04.2020 is `10,28,000 (`9,28,000 + `1,00,000).

Step 2: Calculation of Depreciation for 2020-2021
- Calculate the depreciation for the year 2020-2021 at the rate of 20% on the reducing balance method.
- The depreciation for the year is `2,05,600 (`10,28,000 * 20%).

Step 3: Adjustment for Depreciation
- Deduct the depreciation amount of `2,05,600 from the revised balance of the Machinery Account as at 01.04.2020.
- The adjusted balance of the Machinery Account as at 31.03.2021 is `8,22,400 (`10,28,000 - `2,05,600).

Final Answer:
The balance of the Machinery Account as at 31.03.2021 is `8,22,400.
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On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was discovered during 2020-2021 that ` 1,00,000 being the cost of generator purchased on 1st Oct, 2018 had been written off to Stores. After rectification and depreciation @ 20% p.a. on reducing balances, Calculate the balance of Machinery A/c as at 31.03.2021?
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On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was discovered during 2020-2021 that ` 1,00,000 being the cost of generator purchased on 1st Oct, 2018 had been written off to Stores. After rectification and depreciation @ 20% p.a. on reducing balances, Calculate the balance of Machinery A/c as at 31.03.2021? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was discovered during 2020-2021 that ` 1,00,000 being the cost of generator purchased on 1st Oct, 2018 had been written off to Stores. After rectification and depreciation @ 20% p.a. on reducing balances, Calculate the balance of Machinery A/c as at 31.03.2021? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1.04.2020, the balance of Machinery Account ` 9,28,000 . It was discovered during 2020-2021 that ` 1,00,000 being the cost of generator purchased on 1st Oct, 2018 had been written off to Stores. After rectification and depreciation @ 20% p.a. on reducing balances, Calculate the balance of Machinery A/c as at 31.03.2021?.
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