On 1st July, 2019, OM Ltd. purchases second-hand machinery for ₹ 20,000 and spends ₹ 3,000 on reconditioning and installing it. On 1st January 2020, the firm purchases new machinery worth ₹ 12,000.
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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
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A company whose accounting year is a financial year, purchased on 1st July, 2020 machinery costing ₹ 30,000
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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
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On 1st April, 2019, Gurman Toys purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its erection. On 1st October, 2019, an additional machinery costing ₹ 1,00,000 was purchased
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On 1st April, 2019, Star Trading purchased 5 Machines for ₹ 60,000 each. On 1st April, 2021, one of the machine was sold at a loss of ₹ 8,000
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From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2023:
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On 1st Apirl, 2016, 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 year’s life.
Solution:- i) The depreciation expenses in the first year = (₹ 10,5000 – 5000)/10 = ₹ 10,000 ii) The net book value of the asset on 31st March 2021 = ₹ 1,05,000 – 10,000 ✕ 5 = ₹ 55,000 iii)…
On 1st April, 2019, furniture costing ₹ 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for ₹ 5,000.
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On Ist April, 2020, Starex purchased a machine costing ₹ 4,00,000 and spent ₹ 50,000 on its installation
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