From the following transactions of a concern, prepare the Machinery Account for the year ending 31st Dec. 2022: 01-01-21 Purchased a second-hand, M...

Question

From the following transactions of a concern, prepare the Machinery Account for the year ending 31st Dec. 2022: 01-01-21 Purchased a second-hand, Machinery for Rs. 2,00,000 01-01-21 Spent 50;000 on repairs for making it serviceable 30-06-21 Purchased additional new machinery for 3,50,000 30-06-21 Installation charges of new machine 15,000 01-04-22 Repairs & maintenance of Machinery 30,000 30-06-22 Sold second hand Machinery purchased 01-01-21 for 55,000. 31-12-22 Depreciate the Machinery at 10% per annum by WDV Method [Dec 2023, 5 Marks]

Accepted Answer

Answer Solution: Machinery A/ c Date Particulars Amount Date Particulars Amount 2021 1 Jan 30 June To Bank A/c (Purchase of I Machinery) To Bank A/c (Repair on I Machinery) To Bank A/c (Purchase of II Machinery) (3,50,000 + 15,000) 2,00,000 50,000 3,65,000 2021 31 Dec By Depreciation on I: 25,000 II: 18,250 By Balance c/ d I: 2,25,000 II: 3,16,750 43,250 5,71,750 TOTAL 6,15,000 TOTAL 6,15,000 2022 1 Jan To Balance b/ d I: 2,25,000 II: 3,16,750 5,71,750 2022 30 Jan 31 Dec. By Depreciation on 1st By Bank A/c By Profit & Loss A/ c (Loss) By Depreciation on II Machinery By Balance c/ d 11,250 1,55,000 58,750 34,675 3,12,075 TOTAL 5,71,750 TOTAL 5,71,750 Working Note: I Machine Amount 1 Jan., 2021 2,50,000 31 Dec. (25,000) 1 Jan., 2022 2,25,000 30 June (11,250) 2,13,750 Selling price (1,55,000) Loss on sale 58,750 II Machine Amount 30 June, 2021 3,65,000 31 Dec. (18,250) 1 Jan., 2022 3,46,750 31 Dec. (34,675) Balance 3,12,075

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