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Depreciation Assignment Sums

The company purchased a machine for Rs. 3,90,000 plus Rs. 10,000 for installation on July 1st, 2008. It provided depreciation of 15% annually on the written down value. On November 30th, 2011 the machine was dismantled for Rs. 5,000 and sold for Rs. 1,00,000. On December 1st, 2011 a new machine was acquired for Rs. 7,60,000 and depreciated at 15% annually on the written down value.

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223 views2 pages

Depreciation Assignment Sums

The company purchased a machine for Rs. 3,90,000 plus Rs. 10,000 for installation on July 1st, 2008. It provided depreciation of 15% annually on the written down value. On November 30th, 2011 the machine was dismantled for Rs. 5,000 and sold for Rs. 1,00,000. On December 1st, 2011 a new machine was acquired for Rs. 7,60,000 and depreciated at 15% annually on the written down value.

Uploaded by

shuklaworior
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1 On 1st July, 2008 a company purchased a machine for Rs

3,90,000 and spent Rs 10,000 on its installation. It decided to


provide depreciation @ 15% per annum, using written down value
method. On 30th November, 2011 the machine was dismantled at a
cost of Rs 5,000 and then sold for Rs 1,00,000.

On 1st December, 2011 the company acquired and put into


operation a new machine at a total cost of Rs 7,60,000.
Depreciation was provided on the new machine on the same basis
as had been used in the case of the earlier machine. The company
closes its books of account every year on 31st March.

2 X Co. Ltd. purchased a machine on 1st April, 2008 for Rs


1,60,000. On October 1, 2009 another machine was purchased for
Rs 1,40,000. On October 1, 2010 the first machine was sold for Rs
1,20,000. On the same date, another machine was purchased for Rs
1,00,000. On October 1, 2011 the second machine was sold for Rs
92,000.

Rate of depreciation was 10% on original cost annually on 31st


March. On 31st March, 2011 the method of charging depreciation
was changed to diminishing balance method, the rate being 15%.

Prepare Machine Account for the years ending 31st March, 2009,
2010, 2011, and 2012
3 On 1st April, 2011, A Ltd. purchased a machine for Rs.2,40,000 and spent Rs.10,000 on its
erection. On 1st October, 2011, an additional machinery costing Rs.1,00,000 was purchased.
On 1st October, 2013 the machine purchased on 1st April, 2011 was sold for Rs.1,43,000 and
on the same date, a new machine was purchased at a cost of Rs.2,00,000.
Show the Machinery Account for the first four financial years after charging Depreciation at
5% p.a. by the Straight Line Method.

4 From the following transactions of a concern, prepare the Machinery Account for ended
31at March, 2015:
1st April, 2014: Purchased second-hand machinery for Rs.40,000.
1st April, 2014: Spent Rs.10,000 on repairs for making it serviceable.
30th September, 2014: Purchased additional new machinery fort 20,000.
31st December, 2014: Repairs and renewals of machinery Rs.3,000.
31st March, 2015 :Depreciate the machinery at 10% p.a.

5 Modern Ltd. purchased machinery on 1st JulyRs.60,000. On 1st October, 2004 based
another machine for Rs.20,000. On 30th June, 2005, it sold the first machine hosed in 2003
fort Rs.38,500. Depreciation-is provided at 20% p.a. on the original cost year. Accounts are
closed on 31st March every year. Prepare the Machinery A/c for three year.

6 On 1st July. 2010, Sohan Lal and Sons purchased a plant costing Rs.60,000. Additional
plant was purchased on 1st January, 2011 for Rs.40,000 and on 1st October, 2011, for
Rs.20,000. On 1st April, 2012, one-third of the plant purchased on 1st July, 2010, was found
to have become obsolete and was sold for Rs.6,000.
Prepare the Plant Account for the first three years in the books of Sohan Lal and Sons.
Depreciation is charged @ 10% p.a. on Straight Line Method. Accounts are closed on 31st
March each year.

7 Company whose accounting year is a financial year, purchased on 1st July, 2003
machinery costing Rs.30,000. It purchased further machinery on 1st January. 2004 costing
Rs.20,000 and on let October, 2004 costing Rs.10,000. On 1st April, 2005 one-third of the
machinery installed on 1st July. 2003 became obsolete, and was sold for Rs.3,000.
Show how machinery Account would appear in the books of the company. It being given that
machinery was depreciated by fixed installment Method at 10% p.a. What would be the value
of Machinery Account on 1st April, 2006?

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