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Question No 22 Chapter No 13
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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:-
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*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
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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
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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)