On 1st April 2009, a company bought Plant and Machinery costing Rs. 68000. It is estimated that its working life is 10 years, at the end of which it will fetch Rs. 8000. Additions are made on 1st April 2010 to the value of Rs.40000 (residual value Rs.4000) More additions are made on Oct 1, 2011 to the value of Rs. 9800 (break up value Rs. 800) The working life of both the additional plant and machinery is 20 years.
Show the plant and machinery account for the first four year, if depreciation is written off according to straight line methods, the accounts are closed on 31st March every year (Balance of machinery account Rs. 87725)
Dear Student,
Please find the Plant & Machinery account below:
WN 1 - Depreciation on M1=
WN 2 - Depreciation on M2= p.a
WN 3 - Dereciation on M3 =
Regards
Please find the Plant & Machinery account below:
Plant & Machinery Account | ||||||||
Dr. | Cr. | |||||||
Date | Particulars | Amount (Rs) |
Date | Particulars | Amount (Rs) |
|||
2009 | 2010 | |||||||
Apr. 01 | Bank A/c (M1) | 68,000 | Mar. 31 | Depreciation A/c (M1)(WN.1) | 6,000 | |||
Mar. 31 | Balance c/d | 62,000 | ||||||
68,000 | 68,000 | |||||||
2010 | 2011 | |||||||
Apr 01 | Balance b/d | 62,000 | Mar. 31 | Depreciation A/c | ||||
Apr. 01 | Bank A/c (M2) | 40,000 | M1 | 6,000 | ||||
M2 (WN.2) | 1,800 | 7,800 | ||||||
Mar. 31 | Balance c/d | |||||||
M1 | 56,000 | |||||||
M2 | 38,200 | 94,200 | ||||||
1,02,000 | 1,02,000 | |||||||
2011 | 2012 | |||||||
Apr. 01 | Balance b/d | Mar. 31 | Depreciation A/c MI 6,000 |
|||||
M1 | 56000 | M2 1,800 M3 (WN.3) 225 |
8,025 |
|||||
Oct.01 |
M2 Bank A/c(M3) |
38200 |
94,200 9,800 |
Mar.31 | Balance c/d MI 50,000 M2 36,400 M3 9,575 |
95,575 |
||
1,04,000 | 1,04,000 | |||||||
2012 Apr.01 |
Balance c/d MI 50,000 M2 36,400 M3 9,575 |
95,975 |
2013 March.31 |
Depreciation A/c M1 6,000 M2 1,800 M3 450 |
8,250 |
|||
2013 March.31 |
Balance c/d M1 44,000 M2 34,600 M3 9,125 |
87,725 |
||||||
95,575 | 95,575 |
WN 1 - Depreciation on M1=
WN 2 - Depreciation on M2= p.a
WN 3 - Dereciation on M3 =
Regards