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The Machinery Account in the books of Ramlal showed a debit balance of ₹15,000 on 1st April, 2018. On 1st October, 2018, he purchased a machinery costing ₹10,000. On 1st January, 2019 he sold out one old machine for 2,000 whose book - value in the beginning of the year was 3,000. Machinery is to be depreciated at the fixed rate of 10% on diminishing balance method. Show the machinery account for the year ending 31st March, 2019.?
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The Machinery Account in the books of Ramlal showed a debit balance of...


Machinery Account for the year ending 31st March, 2019


1. Opening Balance as on 1st April, 2018
- Debit Balance: ₹15,000


2. Purchase of machinery on 1st October, 2018
- Cost of Machinery: ₹10,000
- Depreciation for 6 months (10% on ₹10,000): ₹500
- Machinery balance after depreciation: ₹10,000 - ₹500 = ₹9,500


3. Sale of old machine on 1st January, 2019
- Book Value of old machine: ₹3,000
- Selling Price: ₹2,000
- Loss on Sale: ₹3,000 - ₹2,000 = ₹1,000


4. Depreciation for the year ending 31st March, 2019
- Depreciation on Opening Balance (10% on ₹15,000): ₹1,500
- Depreciation on Purchased Machinery (10% on ₹9,500): ₹950


5. Closing Balance as on 31st March, 2019
- Total Machinery Balance: ₹9,500
- Add: Depreciation for the year: ₹1,500 + ₹950 = ₹2,450
- Closing Balance: ₹9,500 - ₹2,450 = ₹7,050

Therefore, the Machinery Account for the year ending 31st March, 2019 will show a closing balance of ₹7,050.
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The Machinery Account in the books of Ramlal showed a debit balance of ₹15,000 on 1st April, 2018. On 1st October, 2018, he purchased a machinery costing ₹10,000. On 1st January, 2019 he sold out one old machine for 2,000 whose book - value in the beginning of the year was 3,000. Machinery is to be depreciated at the fixed rate of 10% on diminishing balance method. Show the machinery account for the year ending 31st March, 2019.?
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The Machinery Account in the books of Ramlal showed a debit balance of ₹15,000 on 1st April, 2018. On 1st October, 2018, he purchased a machinery costing ₹10,000. On 1st January, 2019 he sold out one old machine for 2,000 whose book - value in the beginning of the year was 3,000. Machinery is to be depreciated at the fixed rate of 10% on diminishing balance method. Show the machinery account for the year ending 31st March, 2019.? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about The Machinery Account in the books of Ramlal showed a debit balance of ₹15,000 on 1st April, 2018. On 1st October, 2018, he purchased a machinery costing ₹10,000. On 1st January, 2019 he sold out one old machine for 2,000 whose book - value in the beginning of the year was 3,000. Machinery is to be depreciated at the fixed rate of 10% on diminishing balance method. Show the machinery account for the year ending 31st March, 2019.? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Machinery Account in the books of Ramlal showed a debit balance of ₹15,000 on 1st April, 2018. On 1st October, 2018, he purchased a machinery costing ₹10,000. On 1st January, 2019 he sold out one old machine for 2,000 whose book - value in the beginning of the year was 3,000. Machinery is to be depreciated at the fixed rate of 10% on diminishing balance method. Show the machinery account for the year ending 31st March, 2019.?.
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