Bills of Exchange and Promissory NotesQ-7 | Bills of Exchange and Promissory NotesQuestion 4757 of 26
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Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
Machinery Account
Date Particulars Amount Date Particulars Amount
2023-
24
Apr 1
Oct. 1
To Balance b/d:
Mach. I 13, 16,480
Mach. II 7,61,024
To Bank A/c
[Purchase of III Machine]
20,77,504
8,50,000
2023-
24
Oct. 1
31 Mar
By Depreciation on I a/ c
By Bank a/c
By Profit & Loss a/c (loss)
By Depreciation on a/ c:
Mach. II 1,52,205 (2)
Mach. III 41,000 (3)
By Balance c/ d:
Mach. II 6,08,819
Mach. III 8.09.000
1,31,648(3)
2,50,000
9,34,832
1,93,205
14,17,819
TOTAL 29,27,504 TOTAL 29,27,504
WORKING NOTES –
I Machine Amount
1 Apr, 2021 17,00,000
31 Mar, 2022 Less: Dep. (2,04,000)
1 Apr, 2022 Balance 14,96,000
31 Mar, 2023 Less: Dep. (1,79,520)
1 April, 2023 Balance 13,16,480
1 Oct, 2023 Less: Dep. (1,31,648)(1)
11,84,832
Less: Sold (2,50,000)
Loss on Sale 9,34,832
II Machine Amount
1st Oct, 2021 9,20,000
31 Mar, 2022 Less: Dep. (55,200)
1 Apr, 2022 Balance 8,64,800
31 Mar, 2023 Less: Dep. (1,03,776)
1 April, 2023 Balance 7,61,024
31st Mar 2024 Less: Dep. (1,52,205)(2)
Balance 6,08,819
III Machine Amount
10 Oct, 2023 8,50,000
.31 Mar, 2024 Less: Dep. (41,000)(3)
Balance 8,09,000
(1) 13,16,480 / 5 years = 2,63,296 / 2 = 1,31,648
(2) 7,61,024 / 5 years = 1,52,205
(3) 8,50,000 – 30,000 / 10 years = 82,000 / 2 = 41,000
Note:- Freight of~ 10,000 as shifting charge of machinery is not included in cost of
Machinery.
Key Concepts to Understand
More Questions from Bills of Exchange and Promissory Notes
Bill of exchange and the various parties to it. [MTP Jan. 2025]
Meaning of Promissory Note
Retirement of bill [RTP Jan. 2025]; [MTP Jan. 2025]
Bill of Exchange and Promissory Note
A promissory note can be made payable to the bearer. [Sep. 2024, 2 Marks]
Promissory Note is different from Bill of Exchange because the amount is paid by the maker in case of former and by the acceptor in the later. [June 2024, 2 Marks]
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