Question No 22 Chapter No 13
Depreciation on Written Down Value
22. On 1st April 2016, Manmeet Singh purchased machine costing Rs 50,000. Depreciation is provided at the rate of 10%p.a. on written down value method at the end of each year. Prepare Machinery Account for three years. Books are closed on 31stMarch.
The solution of Question No 22 Chapter No 13:-
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 01/04/16 | To Cash A/c | 50,000 | 31/03/17 | By Deprecation A/c*1 | 5,000 | ||
| 31/03/17 | By Balance C/d | 45,000 | |||||
| 50,000 | 50,000 | ||||||
| 01/04/17 | To Balance b/d | 45,000 | 31/03/18 | By Depreciation A/c*2 | 4,500 | ||
| 31/03/17 | By Balance C/d | 4,250 | |||||
| 45,000 | 45,000 | ||||||
| 01/04/18 | To Balance b/d | 40,500 | 31/03/19 | By Deprecation A/c*3 | 4,050 | ||
| 31/03/19 | By Balance C/d | 36,450 | |||||
| 40,500 | 40,500 | ||||||
Working note:-
*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 50,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 50,000 X 10/100 X 12/ 12
Depreciation = 5,000
Total Depreciation for the year = 5,000
*2:– Calculation of the amount of Depreciation on furniture for year 2017-18
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 45,000
Rate of Depreciation = 10%
Period = from 01/10/2016 to 31/03/2017 i.e. 6 months
(from the date of purchase/Beginning balance to end of the financial year)
= 45,000 X 10/100 X 12/ 12
Depreciation = 4,500
Total Depreciation for the year = 4,500
*3:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 40,500
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/03/2019 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 40,500 X 10/100 X 12/ 12
Depreciation = 4,050
Total Depreciation for the year = 4,050
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
Chapter No. 9 – Trial Balance
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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)