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Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery
on 01.07.2013 for Rs.200,000.
Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another
machine was purchased for Rs.3,00,000.
Rajesh closes his books on 31 March of every year.
Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations
i) When rate of depreciation charged is 10% p.a. as per Straight Line Method
ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method?
Most Upvoted Answer
Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and...
Machinery Account Preparation
- Machinery Purchased:
- 01.04.2012: Rs. 300,000
- 01.07.2013: Rs. 200,000
- 01.07.2016: Rs. 300,000 (replaced the sold machinery)
- Machinery Sold:
- 01.07.2016: Rs. 75,000 (original machinery)
Depreciation Calculation
- Depreciation Methods:
- i) Straight Line Method (SLM)
- Depreciation = (Cost of Asset - Salvage Value) / Useful Life
- Annual Depreciation = 10% of Cost
- ii) Written Down Value Method (WDV)
- Depreciation = Book Value at Beginning of Year * Depreciation Rate
Machinery A/c under SLM
- Machinery A/c:
- 01.04.2012: +300,000
- 01.07.2013: +200,000
- 01.07.2016: +300,000
- 01.07.2016: -75,000 (sold)
- Annual Depreciation:
- 2012-2016: Rs. 30,000 (10% of Rs. 300,000)
- 2013-2016: Rs. 20,000 (10% of Rs. 200,000)
- Total Depreciation until Sale: Rs. 130,000
Machinery A/c under WDV
- Machinery A/c:
- 01.04.2012: +300,000
- 01.07.2013: +200,000
- 01.07.2016: +300,000
- 01.07.2016: -75,000 (sold)
- Annual Depreciation:
- 2012-2016: Rs. 30,000
- 2013: Rs. 20,000 (10% of 200,000)
- 2014-2015: Rs. 18,000 (10% of remaining book value)
- Adjusting for Sale in 2016 impacts WDV calculation.
Final Notes
- Depreciation Impact:
- SLM provides consistent expense throughout the asset's life.
- WDV results in decreasing depreciation expense over time.
This summary provides a concise overview of the Machinery and Depreciation Accounts for Rajesh Company based on two different methods of calculating depreciation.
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Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method?
Question Description
Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method?.
Solutions for Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? defined & explained in the simplest way possible. Besides giving the explanation of Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method?, a detailed solution for Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? has been provided alongside types of Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? theory, EduRev gives you an ample number of questions to practice Rajesh Company purchased a Machinery for Rs. 300,000 on 01.04.2012 and another machinery on 01.07.2013 for Rs.200,000. Asset purchased on 01.04.2012 was sold on 1/7/2016 , for Rs. 75,000. On the same day another machine was purchased for Rs.3,00,000. Rajesh closes his books on 31 March of every year. Prepare Machinery A/c, and Depreciation Account up to 31/03/17 under the two situations i) When rate of depreciation charged is 10% p.a. as per Straight Line Method ii) When rate of depreciation charged is 10% p.a. as per Written Down Value method? tests, examples and also practice UPSC tests.
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