Question No 22 Chapter No 13

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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/16To Cash A/c 50,00031/03/17By Deprecation A/c*1 5,000
    31/03/17By Balance C/d 45,000
   50,000   50,000
01/04/17To Balance b/d 45,00031/03/18By Depreciation A/c*2 4,500
    31/03/17By Balance C/d 4,250
   45,000   45,000
01/04/18To Balance b/d 40,50031/03/19By Deprecation A/c*3 4,050
    31/03/19By 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. 1 – Introduction

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 

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)

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