19. On July 1, 2020 Pushpak Ltd. purchased a machinery for ₹5,70,000 and paid ₹30,000 for its overhauling and installation. Depreciation is provided @ 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2023 for a sum of ₹1,60,000, You are … Read more
18. A Company, which closes its books on 31st March every year, purchased on 1st July, 2017, machinery costing ₹30,000. It purchased further machinery on 1st January, 2018, costing ₹20,000 and on 1st October, 2018, costing ₹10,000. On 1st April, 2019, one-third of the machinery installed on 1st July, 2017, became obsolete and was sold … Read more
17. Raja Textiles Co. which closes its books on 31st March, purchased a machine on 1-4-2016 for ₹50,000. On 1-10-2017, it purchased an additional machine for ₹30,000. The part of the machine which was purchased on 1-4-2016 costing ₹10,000 was sold for ₹3,600 on 30th Sept., 2019. Prepare the Machine Account for four years, if … Read more
16. The Sameer Transport Company purchased 10 Trucks at ₹90,000 each on 1st April 2019. On 1st October 2021 one of the Trucks was involved in an accident and is completely destroyed. ₹56,200 was received from the Insurance company in full settlement. On the same date another truck was purchased by the company for the … Read more
15. Ashoka Ltd. bought a machine on 1st April, 2020 for ₹2,40,000 and spent ₹4,000 on its carriage and ₹6,000 towards installation cost. On 1st July, 2021 it purchased a second-hand machinery for ₹75,000 and spent ₹25,000 on its overhauling. On 1st January, 2023 it decided to sell the machinery bought on 1st April, 2020 … Read more
14. A Company purchased a machinery for ₹50,000 on 1st Oct., 2016. Another machinery costing ₹10,000 was purchased on 1st Dec., 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of ₹5,000. The Company charges depreciation at the rate of l5% p.a. on Diminishing Balance Method. Accounts are closed … Read more
13. Urja industries Ltd. purchased on 1st January, 2016, a machinery for ₹1,60,000. On 1st April, 2017, it purchased additional machinery costing ₹96,000. On 1st September, 2018 the machinery purchased on 1st January, 2016 was sold for ₹84,000 and on same date fresh machinery was purchased at cost of ₹1,50,000. Depreciation is provided at 10% … Read more
12. A firm purchased on 1st April, 2016, a second-hand Machinery for ₹36,000 and spent ₹74,000 on its installation. On 1st Oct. in the same year another Machinery costing ₹20,000 was purchased. On 1st Oct., 2018, the Machinery bought on 1st April, 2016 was sold off for ₹12,000 and on the same date a fresh … Read more
11. A Company purchased a second-hand machine on 1st April, 2020, for ₹30,000 and immediately spent ₹4,000 on its repair and ₹1,000 on its installation. On Oct. 1, 2022, the machine was sold for ₹25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on … Read more
10. A plant is purchased for ₹60,000 on 1st April, 2016. It is estimated that the residual value of this plant at the end of its working life of 10 years will be ₹20,920. Depreciation is to be provided at 10% p.a. on diminishing balance method. You are required to show the Plant Account for … Read more