In the Books of Dheeraj Enterprises
Machinery A/ c
Date Particulars Amount Date Particulars Amount
2021
1 Apr
1 Oct
To Balance b/ d
1st 2,00,000
2nd 10,00,000
To Bank A/c III
(Machinery purchased)
12,00,000
4,80,000
2021
1 Oct
2022
31 Mar
By Machinery disposal
A/c (transfer)
By Balance c/ d:
2nd 10,00,000
3rd 4,80,000
2,00,000
14,80,000
TOTAL 16,80,000 TOTAL 16,80,000
Provision for Depreciation A/ c
Date Particulars Amount Date Particulars Amount
2021
1 Oct
2022
31
Mar
To Machinery disposal A/c
1st (transfer)
(54200 + 7290)
To Balance b/ d:
2nd 4,69,720
3rd 24,000
61,490
4,93,720
2021
1 Apr
1 Oct
2022
31 Mar
By Balance b/ d:
1st 54,200
2nd 4,10,800
By Depreciation A/c (on
1st)
By Depreciation A/c
II 58,920
III 24,000
4,65,000
7,290
82,920
TOTAL 5,55,210 TOTAL 5,55,210
Machinery disposal A/ c
Date Particulars Amount Date Particulars Amount
2021
1 Oct
To Machinery Al c (Cost)
2,00,000
2021
1 Oct
By Provision for
Depreciation A/c
By Bank A/c
By Profit & loss A/c
(Loss on sale)
61,490
1,10,000
28,510
TOTAL 2,00,000 TOTAL 2,00,000
Working Notes:
l. Calculation of balance in provision for depreciation of Machinery purchased on 1 April,
2018.
Amount
Cost on 1 April 2018
Less: Dep @10%
2,00,000
(20,000)
WDV as on 1 April 2019
Less: Dep. @ 10%
1,80,000
(18,000)
WDV as on 1 April 2020
Less: Dep. @ 10%
WDV as on l April 2021
1,62,000
(16,200)
1,45,800
Total provision for depreciation upto 31st March, 2021 [20,000 + 18,000 + 16,200] = 54,200
2. Depredation on machinery for 2021-22
I = 1,45,800 x 10/100 x 6/12 = 7,290
II = 10,00,000 – 4,10,800
= 5,89,200 x 10%
= 58,920