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M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013.the estimated life life of the machinery is 10 year after which it's break up when you will be 1000 depreciation has to be charged at at 20% on the diminising balance there was an additional to the original machinery on 1st January 2015 to the value of 2000, you are required to prepare machinery account for the first 3 years answer this question?
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M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013...
Machinery Account for M/s Bath and Company


Purchase of Machinery on 1st Jan, 2013


  • Machinery purchased for Rs. 11,000 on 1st Jan, 2013

  • Estimated life of machinery is 10 years

  • Depreciation charged at 20% on diminishing balance method

  • Depreciation for 2013 = 11,000 * 20% = Rs. 2,200

  • Depreciation for 2014 = (11,000 - 2,200) * 20% = Rs. 1,760

  • Depreciation for 2015 = (11,000 - 2,200 - 1,760) * 20% = Rs. 1,408

  • Book value of machinery as on 31st Dec, 2015 = 11,000 - 2,200 - 1,760 - 1,408 = Rs. 5,632



Addition to Machinery on 1st Jan, 2015


  • An additional machinery purchased for Rs. 2,000 on 1st Jan, 2015

  • Estimated life of machinery is 10 years

  • Depreciation charged at 20% on diminishing balance method

  • Depreciation for 2015 = 2,000 * 20% = Rs. 400

  • Depreciation for 2016 = (2,000 - 400) * 20% = Rs. 320

  • Depreciation for 2017 = (2,000 - 400 - 320) * 20% = Rs. 256

  • Book value of machinery as on 31st Dec, 2017 = 11,000 - 2,200 - 1,760 - 1,408 - 400 - 320 - 256 = Rs. 4,556



Summary of Machinery Account for the First 3 Years


  • Opening balance as on 1st Jan, 2013 = Rs. 11,000

  • Addition to machinery on 1st Jan, 2015 = Rs. 2,000

  • Total depreciation charged for 2013 = Rs. 2,200

  • Total depreciation charged for 2014 = Rs. 1,760

  • Total depreciation charged for 2015 = Rs. 1,808 (including Rs. 400 for addition)

  • Total depreciation charged for 2016 = Rs. 320

  • Total depreciation charged for 2017 = Rs. 256

  • Closing balance as on 31st Dec, 2017 = Rs. 4,556

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M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013.the estimated life life of the machinery is 10 year after which it's break up when you will be 1000 depreciation has to be charged at at 20% on the diminising balance there was an additional to the original machinery on 1st January 2015 to the value of 2000, you are required to prepare machinery account for the first 3 years answer this question?
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M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013.the estimated life life of the machinery is 10 year after which it's break up when you will be 1000 depreciation has to be charged at at 20% on the diminising balance there was an additional to the original machinery on 1st January 2015 to the value of 2000, you are required to prepare machinery account for the first 3 years answer this question? 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 M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013.the estimated life life of the machinery is 10 year after which it's break up when you will be 1000 depreciation has to be charged at at 20% on the diminising balance there was an additional to the original machinery on 1st January 2015 to the value of 2000, you are required to prepare machinery account for the first 3 years answer this question? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M/s bath and company . Purchase a machinery for 11000,on 1st Jan.,2013.the estimated life life of the machinery is 10 year after which it's break up when you will be 1000 depreciation has to be charged at at 20% on the diminising balance there was an additional to the original machinery on 1st January 2015 to the value of 2000, you are required to prepare machinery account for the first 3 years answer this question?.
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