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On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.?
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On 1st January 2014 m/s das and company purchase a machine for rs. 400...
Machinery Account for 4 years - Accounting Year ending on 31st December
Introduction:
In this scenario, we have a firm called M/s Das and Company that purchases machinery at different points in time. The firm follows the straight-line method of depreciation, where the machinery is depreciated at a rate of 10% per year. We need to create a machinery account for 4 years, with the accounting year ending on 31st December each year.
Year 1: 1st January 2014 to 31st December 2014
- Opening balance: Nil (Assuming no machinery was present before the first purchase)
- Purchases:
- 1st January 2014: Machine purchased for Rs. 40,000
- Depreciation for the year: Rs. 4,000 (10% of Rs. 40,000)
- Closing balance: Rs. 36,000 (Rs. 40,000 - Rs. 4,000)
Year 2: 1st January 2015 to 31st December 2015
- Opening balance: Rs. 36,000 (Closing balance of the previous year)
- Purchases: Nil (No additional machinery purchased)
- Depreciation for the year: Rs. 3,600 (10% of Rs. 36,000)
- Closing balance: Rs. 32,400 (Rs. 36,000 - Rs. 3,600)
Year 3: 1st January 2016 to 31st December 2016
- Opening balance: Rs. 32,400 (Closing balance of the previous year)
- Purchases:
- 1st July 2016: Machine purchased for Rs. 20,000
- Depreciation for the year: Rs. 5,640 (10% of Rs. 52,400)
- Closing balance: Rs. 46,760 (Rs. 52,400 - Rs. 5,640)
Year 4: 1st January 2017 to 31st December 2017
- Opening balance: Rs. 46,760 (Closing balance of the previous year)
- Purchases:
- 1st January 2017: Machine purchased for Rs. 10,000
- Depreciation for the year: Rs. 5,676 (10% of Rs. 56,760)
- Closing balance: Rs. 51,084 (Rs. 56,760 - Rs. 5,676)
Summary:
- The machinery account for 4 years shows the opening balance, purchases, depreciation, and closing balance for each year.
- The machinery account is updated each year based on the purchases made and the depreciation calculated using the straight-line method.
- The opening balance of each year is the closing balance of the previous year.
- The closing balance of each year is the opening balance minus the depreciation for that year.
Note:
- The figures used in this example are for illustrative purposes only and may not reflect actual values.
- The format and presentation of the machinery account may vary depending on the accounting standards and practices followed by the firm.
Introduction:
In this scenario, we have a firm called M/s Das and Company that purchases machinery at different points in time. The firm follows the straight-line method of depreciation, where the machinery is depreciated at a rate of 10% per year. We need to create a machinery account for 4 years, with the accounting year ending on 31st December each year.
Year 1: 1st January 2014 to 31st December 2014
- Opening balance: Nil (Assuming no machinery was present before the first purchase)
- Purchases:
- 1st January 2014: Machine purchased for Rs. 40,000
- Depreciation for the year: Rs. 4,000 (10% of Rs. 40,000)
- Closing balance: Rs. 36,000 (Rs. 40,000 - Rs. 4,000)
Year 2: 1st January 2015 to 31st December 2015
- Opening balance: Rs. 36,000 (Closing balance of the previous year)
- Purchases: Nil (No additional machinery purchased)
- Depreciation for the year: Rs. 3,600 (10% of Rs. 36,000)
- Closing balance: Rs. 32,400 (Rs. 36,000 - Rs. 3,600)
Year 3: 1st January 2016 to 31st December 2016
- Opening balance: Rs. 32,400 (Closing balance of the previous year)
- Purchases:
- 1st July 2016: Machine purchased for Rs. 20,000
- Depreciation for the year: Rs. 5,640 (10% of Rs. 52,400)
- Closing balance: Rs. 46,760 (Rs. 52,400 - Rs. 5,640)
Year 4: 1st January 2017 to 31st December 2017
- Opening balance: Rs. 46,760 (Closing balance of the previous year)
- Purchases:
- 1st January 2017: Machine purchased for Rs. 10,000
- Depreciation for the year: Rs. 5,676 (10% of Rs. 56,760)
- Closing balance: Rs. 51,084 (Rs. 56,760 - Rs. 5,676)
Summary:
- The machinery account for 4 years shows the opening balance, purchases, depreciation, and closing balance for each year.
- The machinery account is updated each year based on the purchases made and the depreciation calculated using the straight-line method.
- The opening balance of each year is the closing balance of the previous year.
- The closing balance of each year is the opening balance minus the depreciation for that year.
Note:
- The figures used in this example are for illustrative purposes only and may not reflect actual values.
- The format and presentation of the machinery account may vary depending on the accounting standards and practices followed by the firm.
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On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.?
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On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.? 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 On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.?.
On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.? 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 On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st January 2014 m/s das and company purchase a machine for rs. 40000 on 1st July 2016 another machine was purchase for 20000 and on 1st January 2017 one more machine was purchase for rupees 10000 . The firm depreciates its machinery @ 10 % on straight line method. Show machinery account for 4 years the accounting your Endonon31 December every year.?.
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