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Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.?
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Chapter - depreciation Question :- A machinery was purchased for 10,00...
**Machinery Account**
Date Particulars L.F. Amount
1-Apr-16 To Bank A/c 10,000
(Being machinery purchased)
31-Mar-17 By Depreciation A/c 1,000
(Being depreciation for the year 2016-17)
1-Oct-17 To Bank A/c 20,000
(Being machinery purchased)
31-Mar-18 By Depreciation A/c 1,000
(Being depreciation for the year 2017-18)
31-Mar-18 By Machinery A/c 8,500
(Being machinery sold)
31-Mar-18 To Depreciation A/c 1,500
(Being depreciation for the year 2017-18)
**Explanation:**
The Machinery account is prepared to record the purchase, depreciation, and sale of machinery over a period of three years. The books are closed on 31st March each year.
1. Purchase of Machinery on 1st April 2016:
- The machinery was purchased for 10,000 on 1st April 2016.
- The entry to record the purchase is made by debiting the Machinery account and crediting the Bank account.
2. Depreciation for the year 2016-17:
- The machinery is depreciated at the rate of 10% per annum on the original cost method.
- The depreciation for the year 2016-17 is calculated as 10% of 10,000, which is 1,000.
- The entry to record the depreciation is made by crediting the Depreciation account and debiting the Machinery account.
3. Purchase of Machinery on 1st October 2017:
- Another machinery was purchased for 20,000 on 1st October 2017.
- The entry to record the purchase is made by debiting the Machinery account and crediting the Bank account.
4. Depreciation for the year 2017-18:
- The machinery is depreciated at the rate of 10% per annum on the original cost method.
- The depreciation for the year 2017-18 is calculated as 10% of 10,000 (for the machinery purchased on 1st April 2016) and 10% of 20,000 (for the machinery purchased on 1st October 2017), which is 1,000 + 2,000 = 3,000.
- The entry to record the depreciation is made by crediting the Depreciation account and debiting the Machinery account.
5. Sale of Machinery on 1st April 2018:
- The machinery purchased on 1st April 2016 was sold for 8,500 on 1st April 2018.
- The entry to record the sale is made by crediting the Machinery account and debiting the Depreciation account.
6. Depreciation for the year 2017-18 (continued):
- The depreciation for the year 2017-18 is calculated as 10% of 20,000 (for the machinery purchased on 1st October 2017), which is 2,000.
- The entry to record the depreciation is
Date Particulars L.F. Amount
1-Apr-16 To Bank A/c 10,000
(Being machinery purchased)
31-Mar-17 By Depreciation A/c 1,000
(Being depreciation for the year 2016-17)
1-Oct-17 To Bank A/c 20,000
(Being machinery purchased)
31-Mar-18 By Depreciation A/c 1,000
(Being depreciation for the year 2017-18)
31-Mar-18 By Machinery A/c 8,500
(Being machinery sold)
31-Mar-18 To Depreciation A/c 1,500
(Being depreciation for the year 2017-18)
**Explanation:**
The Machinery account is prepared to record the purchase, depreciation, and sale of machinery over a period of three years. The books are closed on 31st March each year.
1. Purchase of Machinery on 1st April 2016:
- The machinery was purchased for 10,000 on 1st April 2016.
- The entry to record the purchase is made by debiting the Machinery account and crediting the Bank account.
2. Depreciation for the year 2016-17:
- The machinery is depreciated at the rate of 10% per annum on the original cost method.
- The depreciation for the year 2016-17 is calculated as 10% of 10,000, which is 1,000.
- The entry to record the depreciation is made by crediting the Depreciation account and debiting the Machinery account.
3. Purchase of Machinery on 1st October 2017:
- Another machinery was purchased for 20,000 on 1st October 2017.
- The entry to record the purchase is made by debiting the Machinery account and crediting the Bank account.
4. Depreciation for the year 2017-18:
- The machinery is depreciated at the rate of 10% per annum on the original cost method.
- The depreciation for the year 2017-18 is calculated as 10% of 10,000 (for the machinery purchased on 1st April 2016) and 10% of 20,000 (for the machinery purchased on 1st October 2017), which is 1,000 + 2,000 = 3,000.
- The entry to record the depreciation is made by crediting the Depreciation account and debiting the Machinery account.
5. Sale of Machinery on 1st April 2018:
- The machinery purchased on 1st April 2016 was sold for 8,500 on 1st April 2018.
- The entry to record the sale is made by crediting the Machinery account and debiting the Depreciation account.
6. Depreciation for the year 2017-18 (continued):
- The depreciation for the year 2017-18 is calculated as 10% of 20,000 (for the machinery purchased on 1st October 2017), which is 2,000.
- The entry to record the depreciation is
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Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.?
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Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.?.
Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.?.
Solutions for Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? in English & in Hindi are available as part of our courses for Commerce.
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Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.?, a detailed solution for Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? has been provided alongside types of Chapter - depreciation Question :- A machinery was purchased for 10,000 on 1st April, 2016 by Gaurav Verma. It was decided to depreciate it at the rate of 10% p.a. on original cost method. On 1 October, 2017, another machinery was purchased for 20,000. On 1st April, 2018, the machinery bought on 1st April, 2016 was sold for 8,500. Prepare Machinery Account for three years assuming that the books are closed on 31st march each year.? theory, EduRev gives you an
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