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On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method?
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On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurr...
Machinery and Depreciation Account
Machinery Purchase
- Cost of machinery: ₹1,70,000
- Installation expenses: ₹50,000
- Total cost: ₹2,20,000
Depreciation Calculation
- Depreciable amount = Cost of machinery - Scrap value
- Depreciable amount = ₹2,20,000 - ₹40,000 = ₹1,80,000
- Annual depreciation = Depreciable amount / Estimated life
- Annual depreciation = ₹1,80,000 / 6 = ₹30,000
Year 1
- Depreciation for year 1 = ₹30,000
- Accumulated depreciation = ₹30,000
Year 2
- Depreciation for year 2 = ₹30,000
- Accumulated depreciation = ₹60,000
Year 3
- Depreciation for year 3 = ₹30,000
- Accumulated depreciation = ₹90,000
Machinery and Depreciation Account
| Year | Depreciation | Accumulated Depreciation |
|------|--------------|---------------------------|
| 1 | ₹30,000 | ₹30,000 |
| 2 | ₹30,000 | ₹60,000 |
| 3 | ₹30,000 | ₹90,000 |
This method ensures that the cost of the machinery is evenly spread over its estimated useful life. The scrap value is considered when calculating the depreciable amount, and depreciation is charged annually based on this amount. This allows for a systematic allocation of the cost of the machinery over its useful life, providing a more accurate representation of the asset's value over time.
Machinery Purchase
- Cost of machinery: ₹1,70,000
- Installation expenses: ₹50,000
- Total cost: ₹2,20,000
Depreciation Calculation
- Depreciable amount = Cost of machinery - Scrap value
- Depreciable amount = ₹2,20,000 - ₹40,000 = ₹1,80,000
- Annual depreciation = Depreciable amount / Estimated life
- Annual depreciation = ₹1,80,000 / 6 = ₹30,000
Year 1
- Depreciation for year 1 = ₹30,000
- Accumulated depreciation = ₹30,000
Year 2
- Depreciation for year 2 = ₹30,000
- Accumulated depreciation = ₹60,000
Year 3
- Depreciation for year 3 = ₹30,000
- Accumulated depreciation = ₹90,000
Machinery and Depreciation Account
| Year | Depreciation | Accumulated Depreciation |
|------|--------------|---------------------------|
| 1 | ₹30,000 | ₹30,000 |
| 2 | ₹30,000 | ₹60,000 |
| 3 | ₹30,000 | ₹90,000 |
This method ensures that the cost of the machinery is evenly spread over its estimated useful life. The scrap value is considered when calculating the depreciable amount, and depreciation is charged annually based on this amount. This allows for a systematic allocation of the cost of the machinery over its useful life, providing a more accurate representation of the asset's value over time.
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On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method?
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On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method?.
On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April 2017 M/s Y purchased a machinery for ₹1,70,000 and incurred expenses on its installation ₹ 50,000. the estimated life of machine is 6 years. the estimated scrap value at the end of life is ₹40,000. prepare machinery and deprecation account for first three year charing deprecation on. straight line method?.
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