Q1. A company whose accounting year is the calendar year, purchased on 1st April, 2008, machinery costing 30,000. It purchased further machinery on 1st October, 2008, costing 20,000 and on 1st July, 2009, costing 10,000.
On 1st January, 2010, one-third of the machinery which was installed on 1st April, 2008 became obsolete and was sold for 3,000.
Show how the machinery account would appear in the books of the company, it being given that machinery was depreciated by Fixed Instalment at 10 per cent p.a.
Q2. On 1st April, 2007 Manas Ltd. purchased 10 machines of 30,000 each. On 30th June 2008, one machine out of the 10 machines purchased on 1st April 2007, was sold for 24,000 and on 31st Dec. 2009 one more machine was sold for 22,500. A new machine was purchased on 30th Sept. 2012 for 32,000. The company has adopeted the practice of providing depreciation at 10% p.a. on original cost of machine. The company closes its books on 31st March every year. You are required to prepare Machinery Account upto 31st March 2011.
Q3. On 1st April, 2005, Z Ltd. purchased machinery for 1,20,000 and on 30th September 2006, it acquired additional machinery for 1,20,000 and on 30th September 2006, it acquired additional machinery for 20,000.
On 30.06.2007 one of the original machine (purchased on 1.4.2005) which had cost 5,000 was found to have become obsolete and was sold as scrap for 500. On the same date a new machine was purchased for 8,000.Depreciation is to be charged @ 15% p.a. on written down value. Accounts are closed on 31st March each year. Show machinery account for the first three years.
Q4. Company, which closes its books on 31st March every year, purchased on 1st July, 2010, machinery costing 30,000 and on 1st October, 2011, costing 10,000. On 1st April, 2012, on-third of the machinery installed on 1st July, 2010, became obsolete and was sold for 3,000.
Show how the machinery account would appear in the books of the Company, it being given that machinery was depreciated by Diminishing Balance Method at 10% per annum. What would be the balance of Machinery Account on 1st April, 2013?
Q5. The Sameer Transport Company purchased 10 Trucks at 90,000 each on 1st April 2011. On 1st October 2013 one of the Trucks was involved in an accident and is completely destroyed. 56,200 was received from the Insurance company in full settlement. on the same date another truck was purchased by the company for the sum of 1,00,000. The company writes off 20% per annum on the Diminishing Balance Method. The company maintains the calendar year as its financial year. Show the Truck Account for four years ending 31st December, 2014.
Q6. Ashoka Ltd. bought a machine on 1st April. 2010 for 2,40,000 and spent 4,000 on its carriage and 6,000 towards installation cost. On 1st July, 2011 it purchased a second hand machinery for 75,000 and spent 25,000 on its overhauling. On 1st January, 2013 it decided to sell the machinery bought on 1st April, 2010 at a loss of 20,000. It bought another machine on the same date of 40,000. Company decided to charge depreciation @ 15% p.a. on written down value method. Prepare machinery account for 3 years. Books are closed each year on 31st March.
Q7. On 1st April 2012, Banglore Silk Ltd. purchased a machinery for 20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method and closes its books on 31st March every year. On 1st July 2014, a part of the machinery purchased on 1st April 2012 for 4,00,000 was sold for 3,20,000. On 1st November 2014, a new machinery was purchased for 4,80,000. You are required to prepare Machinery Account for 4 years ending 31st March .