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The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.?
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The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000....
Machine Account

Balance as on January 1, 2013: Z 10,00,000

Purchase of New Machines:

  • 1-10-2013: Z 50,000

  • 1-7-2014: Z 1,00,000



Depreciation:

  • Depreciation charged at 10% p.a. on straight line method.

  • Depreciation for 2013: Z 1,00,000 (10% of Z 10,00,000)

  • Depreciation for 2014: Z 1,50,000 (10% of Z 15,00,000)

  • Depreciation for 2015: Z 2,00,000 (10% of Z 20,00,000)



Sale of Machine:

  • Machine sold on 1-4-2015 for Z 80,000

  • Book value of machine on 1-1-2013: Z 1,50,000

  • Depreciation for 2013 and 2014: Z 2,50,000 (Z 1,00,000 + Z 1,50,000)

  • Book value of machine on 1-4-2015: Z 1,00,000 (Z 1,50,000 - Z 2,50,000)

  • Sale value of machine: Z 80,000

  • Loss on sale: Z 20,000 (Z 1,00,000 - Z 80,000)



Machine Account as on December 31, 2015:

  • Opening balance: Z 10,00,000

  • Additions:

    • 1-10-2013: Z 50,000

    • 1-7-2014: Z 1,00,000


  • Depreciation:

    • 2013: Z 1,00,000

    • 2014: Z 1,50,000

    • 2015: Z 2,00,000


  • Sale of machine: Z 80,000

  • Closing balance: Z 6,20,000 (Z 10,00,000 + Z 50,000 + Z 1,00,000 - Z 1,00,000 - Z 1,50,000 - Z 2,00,000 - Z 20,000)



Explanation:

  • The Machine Account is a record of all the machines owned by the company and their respective values.

  • The balance as on January 1, 2013 was Z 10,00,000.

  • Two new machines were purchased on 1-10-2013 and 1-7-2014 for Z 50,000 and Z 1,00,000 respectively.
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The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.?
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The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.? 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 The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of Machine Account on January 8 4 1, 2013 was Z 10,00,000. New machines were purchased, one on 1-10-2013 for Z 50,000 and the other on 1-7-2014 for Z 1,00,000. On 1-4-2015, a machine whose book value had been Z 1,50,000 on 1-1-2013 was sold for Z 80,000 and the entire amount was credited to Machine Account. Depreciation had been charged at 10% p.a. on straight line method. Show Machine Account from 1.1.2013 to 31-12-2015.?.
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