Understanding the Freight Misposting
The freight paid on a machine was ₹5,600 but was erroneously posted as ₹6,500 in the Freight Account. This misposting can affect the financial statements, particularly in calculating the machine's depreciation.

Impact of Incorrect Posting
- The overstatement of freight costs results in inflated operational expenses.
- This can lead to a misrepresentation of the total cost of the machine, affecting asset valuation.

Correct Calculation of Depreciation
To calculate depreciation correctly, the proper cost of the machine must be established. The correct freight cost should be used:
- **Correct Freight Cost**: ₹5,600
- **Total Cost of the Machine**: This includes the purchase price plus the correct freight.
Assuming the purchase price of the machine is ₹X, the total cost will be:
- **Total Cost = Purchase Price + Correct Freight Cost**
- **Total Cost = ₹X + ₹5,600**

Depreciation Calculation
Depreciation is calculated based on the total cost of the asset. Assuming a 10% depreciation rate:
- **Depreciation Expense = Total Cost × Depreciation Rate**
- **Depreciation Expense = (₹X + ₹5,600) × 10%**

Conclusion
To maintain accurate financial records, corrections must be made to the Freight Account. The correct freight cost should be posted, and subsequent calculations for depreciation must be based on the accurate total cost of the machine. This ensures that the financial statements reflect the true value of the asset and its associated expenses.