Charge depreciation @ 10% p.a for two month on machine costing Rs 30,000.
How do you journalise this and why does the amount become 500?
Dear Student, the solution of query is as follows:
In response to your second query, Calculation of Depreciation is as follows:
$\mathrm{Depreciation}\mathrm{on}\mathrm{Machinery}=30,000\times \frac{10}{100}\times \frac{2}{12}=\mathrm{Rs}500$
Journal  
Date  Particulars  L.F.  Debit Amount (Rs) 
Credit Amount (Rs) 

Depreciation A/c  Dr.  
To Machinery A/c  
(Depreciation @ 10% p.a. charged on Machinery for two months)  
In response to your second query, Calculation of Depreciation is as follows:
$\mathrm{Depreciation}\mathrm{on}\mathrm{Machinery}=30,000\times \frac{10}{100}\times \frac{2}{12}=\mathrm{Rs}500$