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MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years?
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MS golden limited purchased machine for 3 lakh 60000 on 1st October 20...
Prepaid Machine Account:
Prepaid machine account is a current asset account that represents the cost of a machine that has been paid for in advance but has not yet been used. It is recorded in the books of accounts as an asset until the machine is put into use.
Depreciation Account:
Depreciation account is a contra-asset account that represents the decrease in value of an asset over time due to wear and tear, obsolescence, or any other factor. It is recorded in the books of accounts to allocate the cost of the asset to the periods in which it is used.
Machine Purchase and Expenses:
- On 1st October 2014, MS Golden Limited purchased a machine for ₹3,60,000.
- On 1st April 2015, the machine was put into use.
- On 31st March every year, the books of accounts are closed.
Depreciation Calculation:
- The machine was purchased on 1st October 2014 and put into use on 1st April 2015. Therefore, the first year's depreciation will be calculated from 1st April 2015 to 31st March 2016.
- The machine was purchased for ₹3,60,000 and the depreciation rate is 10% per annum on the straight-line method.
- So, the first year's depreciation will be ₹3,60,000 * 10% = ₹36,000.
Prepaid Machine Account and Depreciation Account for First 3 Years:
1. Year 2014-2015:
- Prepaid Machine Account: The machine was purchased but not put into use, so the prepaid machine account will show ₹3,60,000 as a current asset.
- Depreciation Account: Since the machine was not put into use, there will be no depreciation expense recorded in the depreciation account.
2. Year 2015-2016:
- Prepaid Machine Account: The machine was put into use on 1st April 2015, so the prepaid machine account will show ₹0 as the machine has been utilized.
- Depreciation Account: The depreciation expense for the first year will be recorded as ₹36,000 in the depreciation account.
3. Year 2016-2017:
- Prepaid Machine Account: No further purchase of machines was made, so the prepaid machine account will show ₹0.
- Depreciation Account: The depreciation expense for the second year will be recorded as ₹36,000 in the depreciation account.
Note: The information provided does not include any details about the expenses related to ETS transportation in the fourth year. Therefore, the prepaid machine account and depreciation account for the fourth year cannot be determined with the given information.
Prepaid machine account is a current asset account that represents the cost of a machine that has been paid for in advance but has not yet been used. It is recorded in the books of accounts as an asset until the machine is put into use.
Depreciation Account:
Depreciation account is a contra-asset account that represents the decrease in value of an asset over time due to wear and tear, obsolescence, or any other factor. It is recorded in the books of accounts to allocate the cost of the asset to the periods in which it is used.
Machine Purchase and Expenses:
- On 1st October 2014, MS Golden Limited purchased a machine for ₹3,60,000.
- On 1st April 2015, the machine was put into use.
- On 31st March every year, the books of accounts are closed.
Depreciation Calculation:
- The machine was purchased on 1st October 2014 and put into use on 1st April 2015. Therefore, the first year's depreciation will be calculated from 1st April 2015 to 31st March 2016.
- The machine was purchased for ₹3,60,000 and the depreciation rate is 10% per annum on the straight-line method.
- So, the first year's depreciation will be ₹3,60,000 * 10% = ₹36,000.
Prepaid Machine Account and Depreciation Account for First 3 Years:
1. Year 2014-2015:
- Prepaid Machine Account: The machine was purchased but not put into use, so the prepaid machine account will show ₹3,60,000 as a current asset.
- Depreciation Account: Since the machine was not put into use, there will be no depreciation expense recorded in the depreciation account.
2. Year 2015-2016:
- Prepaid Machine Account: The machine was put into use on 1st April 2015, so the prepaid machine account will show ₹0 as the machine has been utilized.
- Depreciation Account: The depreciation expense for the first year will be recorded as ₹36,000 in the depreciation account.
3. Year 2016-2017:
- Prepaid Machine Account: No further purchase of machines was made, so the prepaid machine account will show ₹0.
- Depreciation Account: The depreciation expense for the second year will be recorded as ₹36,000 in the depreciation account.
Note: The information provided does not include any details about the expenses related to ETS transportation in the fourth year. Therefore, the prepaid machine account and depreciation account for the fourth year cannot be determined with the given information.
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MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years?
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MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? 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 MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years?.
MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? 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 MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years?.
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MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years?, a detailed solution for MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? has been provided alongside types of MS golden limited purchased machine for 3 lakh 60000 on 1st October 2014 and spend 44 ETS transportation on first fourth 2016 the firm purchased another machine for 2 lakh 50000 on charges depreciation @ 10% per annum on straight line method every year the books of accounts of closed on 31st March every year prepaid machine account and depreciation account for first 3 years? theory, EduRev gives you an
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