On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and spent Z 10,000 for its installation. On 1st November, 2011, company purchased another machine for 1,00,000 and spent 20,000 on its overhauling. On 30th September, 2012, the machine purchased in 2010 was sold at a loss of Z 1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare machine account up to 31st March 2013.?

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On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and spent Z 10,000 for its installation. On 1st November, 2011, company purchased another machine for 1,00,000 and spent 20,000 on its overhauling. On 30th September, 2012, the machine purchased in 2010 was sold at a loss of Z 1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare machine account up to 31st March 2013.?

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On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and ...

Solution:

Machine Account

Particulars 2010 2011 2012 2013
Opening Balance 3,90,000 1,00,000 -
Add: Installation 10,000 - -
4,00,000 1,00,000 -
Less: Depreciation for 2010-11 40,000 10,000 -
Closing Balance 3,60,000 90,000 -
Add: Overhauling Expenses 20,000 -
3,60,000 1,10,000 -
Less: Depreciation for 2011-12 11,000 -
Closing Balance 3,60,000 99,000 -
Less: Loss on Sale 1,27,800
Closing Balance 2,32,200 99,000 -

Explanation:

- On 1st April 2010, Gama Ltd. purchased a machine for Rs. 3,90,000 and spent Rs. 10,000 for its installation. So, the cost of the machine became Rs. 4,00,000.
- The company charged depreciation @ 10% p.a. on written down value basis. So, the depreciation for the year 2010-11 was Rs. 40,000 (10% of Rs. 4,00,000).
- On 1st November 2011, the company purchased another machine for Rs. 1,00,000 and spent Rs. 20,000 on its overhauling. So, the cost of the machine became Rs. 1,20,000.
- The company charged depreciation @ 10% p.a. on written down value basis. So, the depreciation for the year 2011-12 was Rs. 11,000 (10% of Rs. 1,10,000).
- On 30th September 2012, the machine purchased in 2010 was sold at a loss of Rs. 1,27,800.
- The accounts are closed on 31st March every year. So, the depreciation for the year 2012-13 was not charged on the machine sold.
- The closing balance of the machine account as on 31st March 2013 was Rs. 2,32,200 for the machine purchased in 2010 and Rs. 99,000 for the machine purchased in 2011.

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On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and spent Z 10,000 for its installation. On 1st November, 2011, company purchased another machine for 1,00,000 and spent 20,000 on its overhauling. On 30th September, 2012, the machine purchased in 2010 was sold at a loss of Z 1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare machine account up to 31st March 2013.? 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 On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and spent Z 10,000 for its installation. On 1st November, 2011, company purchased another machine for 1,00,000 and spent 20,000 on its overhauling. On 30th September, 2012, the machine purchased in 2010 was sold at a loss of Z 1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare machine account up to 31st March 2013.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April, 2010, Gama Ltd. purchased a 12 machine for 3,90,000 and spent Z 10,000 for its installation. On 1st November, 2011, company purchased another machine for 1,00,000 and spent 20,000 on its overhauling. On 30th September, 2012, the machine purchased in 2010 was sold at a loss of Z 1,27,800. The company charges depreciation @ 10% p.a. on written down value basis. Accounts are closed on 31st March every year. Prepare machine account up to 31st March 2013.?.

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