Page 133 - ISCDEBK-XI

15.18 Double Entry Book Keeping—ISC XI

2017 2018
April 1 To Balance b/d 2,70,000 March 31 By Depreciation A/c:
April 1 To Bank A/c (Purchase) (M2) 1,00,000 M1 60,000
M2 20,000 80,000
March 31 By Balance c/d:
M1 (` 2,70,000 – ` 60,000) 2,10,000
M2 (` 1,00,000 – ` 20,000) 80,000 2,90,000
3,70,000 3,70,000
2018 2018
April 1 To Balance b/d: Oct. 1 By Bank A/c (Sale) 40,000
M1 2,10,000 By Depreciation A/c 10,000
M2 80,000 2,90,000 (1/3 × ` 3,00,000 × 20/100 × 6/12)
Oct. 1 To Bank A/c (M3) 50,000 By Loss on Sale of Machine A/c 20,000
(Purchase) (` 2,10,000 × 1/3) – (` 40,000
+ ` 10,000)
2019
March 31 By Depreciation A/c:
M1 40,000
M2 20,000
M3 (For 6 Months) 5,000 65,000
March 31 By Balance c/d:
M1 (` 1,40,000 – ` 40,000) 1,00,000
M2 (` 80,000 – ` 20,000) 60,000
M3 (` 50,000 – ` 5,000) 45,000 2,05,000
3,40,000 3,40,000
2019
April 1 To Balance b/d 2,05,000

(ii) When Machinery Account and Provision for Depreciation Account are prepared:
Dr. MACHINERY ACCOUNT Cr.
Date Particulars ` Date Particulars `
2016 2017
Oct. 1 To Bank A/c (Purchase Price) (M1) 2,00,000 March 31 By Balance c/d 3,00,000
To Bank A/c (Freight) (M1) 40,000
To Bank A/c (Installation Cost) (M1) 60,000
3,00,000 3,00,000
2017 2018
April 1 To Balance b/d 3,00,000 March 31 By Balance c/d 4,00,000
April 1 To Bank A/c (M2) 1,00,000
4,00,000 4,00,000
2018 2018
April 1 To Balance b/d 4,00,000 Oct. 1 By Bank A/c (Sale) 40,000
Oct. 1 To Bank A/c (M3) 50,000 By Provision for Depreciation A/c 40,000
By Loss on Sale of Machine A/c 20,000
2019
March 31 By Balance c/d 3,50,000
4,50,000 4,50,000