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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

11. A Van was purchased on 1st April, 2020 for ₹ 60,000 and ₹ 5,000 was spent on its repair and registration. On 1st October, 2021 another van was purchased for ₹ 70,000. On 1st April, 2022, the first van purchased on 1st April, 2020 was sold for ₹ 45,000...

12. On 1st April, 2010, Plant and Machinery was purchased for ₹ 1,20,000. New machinery was purchased on 1st October, 2010 for ₹ 50,000 and on 1st July, 2011, for ₹ 25,000. On 1st January, 2013, a machinery of the original value of ₹ 20,000 which was included in the...

13. A company whose accounting year is a financial year, purchased on 1st July, 2021 machinery costing ₹ 30,000. It purchased further machinery on 1st January, 2022 costing ₹ 20,000 and on 1st October, 2022 costing ₹ 10,000. On 1st April, 2023, one-third of the machinery installed on 1st July,...

14. On 1st July, 2020, Alpha Ltd. purchases second-hand machinery for ₹ 20,000 and spends ₹ 73,000 on reconditioning and installing it. On 1st January, 2021, the firm purchases new machinery worth ₹ 12,000. On 30th June, 2022, the machinery purchased on 1st January, 2021, was sold for ₹ 8,000...

15. The following balances appeared in the books of Priyank Ltd. as on lst April, 2023: Machinery A/c ₹ 10,00,000 Provision for Depreciation A/c ₹ 4,50,000 Depreciation is provided at 10% per annum on the orig1nal cost on 31st March every year. On 1st October, 2023, a machine which was...

16. Following balances appear in the books of Paras Bros.: 1st April, 2022 Machinery A/c ₹ 80,000 Provision for Depreciation A/c ₹ 36,000  On 1st April, 2022, they sold a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2018. Prepare Provision for Depreciation Account and...

17. Following balances appear in the books of Priyank Bros.: 1st April, 2023 Machinery A/c ₹ 20,00,000 Provision for Depreciation A/c ₹ 8,00,000 On 1st April, 2023, they decide to sell a machine for ₹ 5,00,000. This machine was purchased ₹ 7,50,000 on 1st April, 2020. Prepare Machinery Account and...

18. A boiler was purchased from abroad for ₹ 10,000. Shipping and forwarding charges ₹ 2,000, Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000.  Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing Balance Method.  T.S.Grewal/2024 Edition/Practical Problems/Q-18...

19. The original cost of original furniture amounted to ₹ 4,000 and it is decided to write off 5% on the original cost as Depreciation at the end of each year. Show the Ledger Account as it will appear during the first four years.  Show also how the same account...

20. Kabir bought a machine for ₹ 25,000 on which he spent ₹ 5,000 for carriage and freight, ₹ 1,000 for brokerage of the middleman, ₹ 3,500 for installation and ₹ 500 for an iron pad. The machine is depreciated @ 10% p.a. on Written Down Value basis. After three...

21. Rajesh purchased on 1st April, 2022, a machine for ₹ 6,000. On 1st October, 2022, he purchased another machine for ₹ 5,000. On 1st October, 2023. he sold the machine purchased on 1st April, 2022 for ₹ 4,000. Depreciation is to be provided @ 10% p.a. according to Diminishing...

22. A company purchased a machine for ₹ 50,000 on 1st October, 2021. Another machine costing ₹ 10,000 was purchased on 1st December, 2022. On 31st March, 2024, the machine purchased in 2021 was sold at a loss of ₹ 5,000. The company charges depreciation @ 15% p.a. on Diminishing...

23. On 1st April, 2021, a machinery was purchased for ₹ 20,000. On 1st October, 2022, another machine was purchased for ₹ 10,000 and on 1st April, 2023, one more machine was purchased for ₹ 5,000. The firm depreciates its machinery @ 10% p.a. on the Diminishing Balance Method. What...

24. Gurman & Co. purchased machinery for ₹ 40,000 on 1st October, 2021. Depreciation is provided @10% p.a. on the Diminishing Balance. On 31st January, 2024, one-fourth of the machinery was found unsuitable and disposed off for ₹ 5,600. On the same date, new machinery at a cost of   ...

25. On 1st October, 2021, Rahul Traders purchased a machine for ₹ 25,000 and spent ₹ 5,000 for carriage and freight; ₹ 1,000 for brokerage of the middle-man, ₹ 4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March, 2024, the machine...

26. Bharat Stores purchased on 1st July, 2020 machinery costing ₹ 30,000. It further purchased machinery on 1st January, 2021 costing ₹ 20,000 and on 1st 0ctober, 2021 costing ₹ 10,000. On 1st April, 2022, one-third of the machinery installed on 1st July, 2020 became obsolete and was sold for...

27. Following balances appear in the books of Kaushal Traders as on 1st April, 2023: 2023 1st April Machinery A/c ₹ 60,000 Provision for Depreciation A/c ₹ 36,000 On 1st April, 2023, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2019 for ...

28. Ashoka & Co. whose books are closed on 31st March, purchased a machinery for ₹ 1,50,000 on 1st April, 2021. Additional machinery was acquired for ₹ 50,000 on 1st October, 2021. Certain machinery which was purchased for ₹ 50,000 on 1st October, 2021 was sold for ₹ 40,000 on...

29. On 1st April, 2014, Veeru Ltd. purchased a machinery for ₹ 2,50,000 and spent ₹ 50,000 on its installation. On 1st July, 2016, 1/3rd of machinery purchased on 1st April, 2014 was sold for ₹ 15,000 and a new machinery at the cost of ₹ 2,00,000 was purchased on...

30. From the books of Harish Traders following information as on 1st April, 2024 is extracted: Plant and Machinery Account ₹ 25,00,000 Provision for Depreciation Account ₹ 5,80,000  Depreciation is charged on the plant at 20% p.a. by the Diminishing Balance Method. A piece of machinery purchased on 1st April,...