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Question 3 Chapter 11 – Unimax Publications of Class 11
Vasu & Co. acquired a machine on 1st July,2016 at a cost of ₹ 70,000 and spent ₹ 5,000 on its installation and carriage. The firm writes off depreciation at 10% of the original cost every year. Prepare Machinery A/c and Deprecation A/c for Four years. The books are closed on 31st December each year.
The solution of Question 3 Chapter 11 – Unimax Publications of Class 11
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01-07-2016 | To Bank A/c | 70,000 | 31-12-2016 | By Deprecation A/c | 3,750 | ||
| 01/07/16 | To Bank A/c (installation cost) | 5,000 | 31-12-2016 | By Balance C/d | 71,250 | ||
| 75,000 | 75,000 | ||||||
| 01-01-2017 | To Balance A/c | 71,250 | 31-12-2017 | By Deprecation A/c | 7,500 | ||
| 31-12-2017 | By Balance C/d | 63,750 | |||||
| 71,250 | 71,250 | ||||||
| 01-01-2018 | To Balance b/d | 63,750 | 31-12-2018 | By Deprecation A/c | 7,500 | ||
| 31-12-2018 | By Balance C/d | 56,250 | |||||
| 63,750 | 63,750 | ||||||
| 01-01-2019 | To Balance b/d | 56,250 | 31-12-2019 | By Deprecation A/c | 7,500 | ||
| 31-12-2019 | By Balance C/d | 48,750 | |||||
| 56,250 | 56,250 | ||||||
| Dr. | DepreciationA/c | Cr. | |||||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | ||
| 31/12/16 | To Machinery A/c | 3,750 | 31/12/16 | By profit & Loss A/c | 3,750 | ||||
| 3,750 | 3,750 | ||||||||
| 31/12/17 | To Machinery A/c | 3,750 | 31/12/17 | By profit & Loss A/c | 3,750 | ||||
| 3,750 | 3,750 | ||||||||
| 31/12/18 | To Machinery A/c | 3,750 | 31/12/18 | By profit & Loss A/c | 3,750 | ||||
| 3,750 | 3,750 | ||||||||
| 31/12/18 | To Machinery A/c | 3,750 | 31/12/19 | By profit & Loss A/c | 3,750 | ||||
| 3,750 | 3,750 | ||||||||
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