Imortant Point :
Total Depreciation is charged on Machine : 25,000+25,000+18,750 = 68,750
Illustration 6
On the basis of information given in Illustration 5, show the Machinery Account and Provision for Depreciation is provided @ 20% p.a. on written Down Value Method.
Solution :
Important Point :
Total Depreciation is charged on Machine : 25000+20,000+12,000 = 57,000
Illustration 7
A Company purchased a machine for ` 40,000 on January 1, 2010. On July 1, 2011 it was sold for `13000. The company charges depreciation @ 10% p.a. on straight line method.
Show Machinery Account, Provision for Depreciation Account and Machinery Disposal account if books are closed on Decemeber 31 each year.
Solution :
Important Point :
Total Depreciation is charged on Machine : 4,000+2,000 = 6,000
Illustrartion 8 :
On July 1, 2008, Porwal Auto Limited purchased Furniture for ` 1,00,000 and spent ` 4,000 towards its installation. On April 1, 2009, the Furniture was disposed off for ` 59,820 and on the same day furniture costing ` 1,60,000 were puchased. Show th Furniture Account, Provission for Depreciation Account and Furniture Disposal Account for the year 2008, 2009 and 2010 if the rate of Depreciation is 15% by Diminishing Balance method.
CBSE Accountancy Class XI ( By Mr. Aniruddh Maheshwari )
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