Page 119 - debkxi

15.14 Double Entry Book Keeping—CBSE XI

2. Balance of Accumulated Depreciation Account on 1st January, 2023
= (` 20,000 + ` 16,000 + ` 12,800) + (` 4,000 + ` 7,200) + ` 1,500 = ` 61,500.
3. Accumulated Depreciation on Machinery Sold = ` 4,000 + ` 7,200 + ` 4,320 = ` 15,520.
10. On 1st April, 2021, a company purchased Plant and Machinery for ` 2,00,000. New
machinery for ` 10,000 was purchased on 1st January, 2022 and for ` 20,000 on
1st October, 2022. On 1st July, 2023, a machinery whose book value had been
` 30,000 on 1st April, 2021 was sold for ` 16,000 and the entire amount was credited
to Plant and Machinery A/c. Depreciation had been charged at 10% p.a. on straight
line method. Accounts are closed on 31st March every year. Show the Plant and
Machinery Account from 1st April, 2021 to 31st March, 2024. (KVS 2015, Modified)
Solution:
Dr. MACHINERY ACCOUNT Cr.
Date Particulars ` Date Particulars `
2021 2022
April 1 To Bank A/c—Mach I 2,00,000 March 31 By Depreciation A/c:
2022 —Mach I 20,000
Jan. 1 To Bank A/c—Mach II 10,000 —Mach II 250 20,250
March 31 By Balance c/d:
—Mach I 1,80,000
—Mach II 9,750 1,89,750
2,10,000 2,10,000
2022 2023
April 1 To Balance b/d: March 31 By Depreciation A/c:
—Mach I 1,80,000 —Mach I 20,000
—Mach II 9,750 1,89,750 —Mach II 1,000
Oct. 1 To Bank A/c—Mach III 20,000 —Mach III 1,000 22,000
March 31 By Balance c/d:
—Mach I 1,60,000
—Mach II 8,750
—Mach III 19,000 1,87,750
2,09,750 2,09,750
2023 2023
April 1 To Balance b/d: July 1 By Depreciation A/c 750
—Mach I 1,60,000 —Mach I (Sold part)
—Mach II 8,750 July 1 By Bank A/c 16,000
—Mach III 19,000 1,87,750 July 1 By Loss on Sale of Machinery A/c 7,250
(Profit & Loss A/c) (Note 1)
2024
March 31 By Depreciation A/c:
—Mach I 17,000
—Mach II 1,000
—Mach III 2,000 20,000
March 31 By Balance c/d:
—Mach I 1,19,000
—Mach II 7,750
—Mach III 17,000 1,43,750
1,87,750 1,87,750