10. On 1st April, 2020, Gurman Toys purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its erection. On 1st October, 2020, an additional machinery costing ₹ 1,00,000 was purchased. On 1st October, 2022, the machine purchased on 1st April, 2020 was sold for ₹ 1,43,000 and on the same date, a new … Read more
9. On 1st April, 2020, Harish Traders purchased 5 machines for ₹ 60,000 each. On 1st April, 2022, one of the machines was sold at a loss of ₹ 8,000. On 1st July, 2023, second machine was sold at a loss of ₹ 12,500. A new machine was purchased for ₹ 1,00,000 on 1st October, … Read more
8. From the following transactions of a concern, prepare the Machinery Account for the year ended 3lst March, 2024: 1st April, 2023 : Purchased a second-hand machinery for ₹ 40,000. 1st April, 2023 : Spent ₹ 10,000 on repairs for making it serviceable. 30th September, 2023 : Purchased additional new machinery for ₹ 20,000. 31st … Read more
7. On 1st April, 2017, a firm purchased a machinery for ₹ 1,05,000. The scrap value was estimated to be ₹ 5,000 at the end of asset’s 10 years’ life. Straight Line Method of depreciation was used. The accounting year ends on 31st March every year. The machine Was sold for ₹ 6,000 on 31st … Read more
6. On 1st April, 2020, furniture costing ₹ 55,000 was purchased. It is estimated that its useful life is 10 years at the end of which it will be sold for ₹ 5,000. Additions are made on 1st April, 2021 and 1st October, 2023 to the value of ₹ 9,500 and ₹ 8,400 (Residual values … Read more
5. On 1st April, 2021, Starex purchased a machine costing ₹ 4,00,000 and spent ₹ 50,000 on its installation. The estimated life of the machinery is 10 years, after which its residual value will be ₹ 50,000. Find the amount of annual depreciation according to the Fixed Instalment Method and prepare Machinery Account for the … Read more
4. Mohan & Co. purchased machinery for ₹ 21,000 on 1st April, 2021. The estimated useful life of the machinery is 10 years, after which its realisable value will be ₹ 1,000. Determine the amount of annual depreciation according to the Straight-Line Method and prepare Machinery Account for the first three years. The books of … Read more
3. On 1st July, 2023, Raja Ltd. purchased a second-hand machine for ₹ 5,00,000 and spent ₹ 1,00,000 on its cartage, repairs and installation. Calculate the amount of depreciation @ 10% p.a. according to Straight Line Method for the year ending on 31st March, 2024. T.S.Grewal/2024 Edition/Practical Problems/Q-03 For full question, please refer to the … Read more
2. Calculate the Amount of annual Depreciation and Rate of Depreciation under Straight Line Method (SLM) from the following: Purchased a second-hand machine for ₹ 96,000, spent ₹ 24,000 on its cartage, repairs and installation, estimated useful life of machine 4 years. Estimated residual value ₹ 72,000 T.S.Grewal/2024 Edition/Practical Problems/Q-02 For full question, please refer … Read more
1. Calculate annual depreciation and rate of depreciation under Straight Line Method in each of the alternative cases: Case Purchase Price of Machinery (₹) Installation Charges (₹) Estimated Scrap Value (₹) Estimated Useful Life (in Years) (a) 1,80,000 20,000 10,000 5 (b) 4,75,000 25,000 50,000 5 (c) 90,000 10,000 20,000 10 (d) 3,40,000 60,000 40,000 … Read more