S Chand & Associates
Machinery A/ c
Date Particulars Amount Date Particulars Amount
1.1.2021 To Bank A/c 3,00,000 31.12.2021 By Balance c/ d 3,00,000
3,00,000 3,00,000
1.1.2022 To Balance b/ d 3,00,000
1.7.2022 To Bank A/c 4,50,000 31.12.2022 By Balance c/ d 7,50,000
7,50,000 7,50,000
1.1.2023 To Balance b/ d 7,50,000 31.12.2023 By Machinery
Disposal A/ c
3,00,000
31.12.2023 By Balance c/ d 4,50,000
7,50,000 7,50,000
1.1.2024 To Balance b/ d 4,50,000
Provision for Depreciation Account A/c
Date Particulars Amount Date Particulars Amount
31.12.2021 To Balance c/ d 45,000 31.12.2021 By Depreciation A/c 45,000
45,000 45,000
31.12.2022 To Balance c/ d 1,17,000 1.1.2022 By Balance b/d 45,000
31.12.2022 By Depreciation A/c
(38,250 + 33,750)
72,000
1,17,000 1,17,000
31.12.2023 To Machinery Disposal
A/c
1,15,762 1.1.2023 By Balance b/d 1,17,000
31.12.2023 To Balance c/d 96,188 31.12.2023 By Depreciation A/c
(WN 1)
By Depreciation
on machinery sold
(W 2)
62,438
32,512
2,11,950 2,11,950
1.1.2024 By Balance b/d 96,188
Machinery Disposal Account
Date Particulars Amount Date Particulars Amount
31.12.23 To Machinery A/ c
3,00,000 31.12.23 By Provision for
Depreciation A/ c
By Bank A/c
By Profit & Loss
A/ c (Loss on Sale)
1,15,762
1,50,000
34,238
TOTAL 3,00,000 TOTAL 3,00,000
Working Notes:
1. Depreciation for the machine purchased on 1.7.2022.
For the year 2022 (Used for 6 months) = 4,50,000 X 15% x 6/12 = 33,750
For the year 2023 (Used for full year)= 4,16,250 X 15% = 62,438
2. Depreciation for the machine purchased on 1.1.2021.
Depreciation for the year 2021 = 3,00,000 X 15% = 45,000.
Depreciation for the year 2022 = 2,55,000 X 15% = 38,250.
Depreciation for the year 2023 = 2,16,750 X 15% = 32,512.