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Question 6 Chapter 11 – Unimax Publications of Class 11
A company purchased machinery on 1st April,2018 costing ₹ 29,500, it spent ₹ 500 on its carriage. It further purchased machinery on 1st October,2018 costing ₹ 20,000 and on 1st July,2019 costing ₹ 10,000. On 1st January 2020. The machinery installed on 1st April 2018 was sold for ₹ 3,000.
Prepare machinery account for 3 years if depreciation is to be charged @ 10% p.a. by Fixed installment method. The books are closed on 31st December each year
The solution of Question 6 Chapter 11 – Unimax Publications of Class 11
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/04/18 | To Bank A/c | 29,500 | 31/12/18 | By Deprecation A/c | 2,750 | ||
| 01/04/18 | To Bank A/c | 500 | 31/12/18 | By Balance C/d | 47,250 | ||
| 01/10/18 | To Bank A/c | 20,000 | |||||
| 50,000 | 50,000 | ||||||
| 01/04/19 | To Balance A/c | 47,250 | 31/12/19 | By Deprecation A/c | 5,500 | ||
| 01/07/19 | To Bank A/c | 10,000 | 31/12/19 | By Balance C/d | 51,750 | ||
| 57,250 | 57,250 | ||||||
| 01/01/20 | To Balance b/d | 51,750 | 01/01/20 | By Bank A/c | 3,000 | ||
| 01/01/20 | By Profit & Loss A/c | 21,750 | |||||
| 31/12/20 | By Deprecation A/c | 3,000 | |||||
| 31/12/20 | By Balance C/d | 24,000 | |||||
| 51,750 | 51,750 | ||||||
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