Question No 03 Chapter No 13
Rate of Depreciation is given
3. Upkar Singh purchased a machine costing Rs 80,000 on 1st Aril,2015. Prepare the machinery account for 4 years, when depreciation id charged @ 10%p.a. on original cost an the books are closed on 31st March every year
The solution of Question No 03 Chapter No 13:-
The method of calculating the Deprecation rate:
| Amount of Depreciation | = | Cost of Machinery / Rate of Depreciation |
| = | 80,000 / 10 X 100 | |
| = | 8,000 |
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 01/04/15 | To Cash A/c | 80,000 | 31/03/16 | By Deprecation A/c | 8,000 | ||
| 31/03/16 | By Balance C/d | 72,000 | |||||
| 80,000 | 80,000 | ||||||
| 01/03/16 | To Balance b/d | 72,000 | 31/03/17 | By Deprecation A/c | 8,000 | ||
| 31/03/17 | By Balance C/d | 64,000 | |||||
| 72,000 | 72,000 | ||||||
| 01/03/17 | To Balance b/d | 64,000 |
31/03/18 | By Deprecation A/c | 8,000 | ||
| 31/03/18 | By Balance C/d | 56,000 |
|||||
| 64,000 | 64,000 | ||||||
| 01/04/18 | To Balance b/d | 56,000 | 31/03/19 | By Deprecation A/c | 8,000 | ||
| 31/03/19 | By Balance C/d | 48,000 | |||||
| 56,000 | 56,000 | ||||||
Depreciation | Meaning | Methods | Examples
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
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Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)