Question No 27 Chapter No 13
WDV Method and Total Sale
27. Ram Roopmati purchased a machine for Rs 3,80,000 and spent Rs 20,000 on its installation 1st April 2016. on 1st July 2017, another machine was purchased for Rs 1,00,000. Depreciation was charged @10% p.a. on written down value basis. On 31st December 2018, both machineries were sold for a consolidated price of Rs 2,20,000.
Prepare Machinery Account for the years 2016-17 to 2018-19
The solution of Question No 27 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 | 4,00,000 | 31/03/17 | By Deprecation A/c*1 | 40,000 | ||
| 31/03/17 | By Balance C/d | 3,60,000 | |||||
| 4,00,000 | 4,00,000 | ||||||
| 01/04/17 | To Balance b/d | 3,60,000 | 31/03/18 | By Depreciation A/c*2 | 43,500 | ||
| 01/07/17 | To Cash A/c | 1,00,000 | 31/03/18 | By Balance C/d | 4,16,500 | ||
| 4,60,000 | 4,60,000 | ||||||
| 01/04/18 | To Balance b/d | 416,500 | 31/12/18 | By Deprecation A/c*3 | 31,238 | ||
| 31/12/18 | By Bank A/c | 2,20,000 | |||||
| 31/12/18 | By Profit/Loss A/c | 1,65,262 | |||||
| 4,16,500 | 4,16,500 | ||||||
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 = 4,00,000
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)
= 4,00,000 X 10/100 X 12/ 12
Depreciation = 40,000
Total Depreciation for the year = 40,000
*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,60,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,60,000 X 10/100 X 12/ 12
Depreciation = 36,000
Machinery purchased on 1st July 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,00,000
Rate of Depreciation = 10%
Period = from 01/07/2017 to 31/03/2018 i.e. 9 months
(from the date of purchase/Beginning balance to end of the financial year)
= 1,00,000 X 10/100 X 9/ 12
Depreciation = 7,500
Total Depreciation for the year = 43,500
*3:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,24,000
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/12/2019 i.e. 10 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,24,000 X 10/100 X 10/ 12
Depreciation = 24,300
Machinery purchased on 1st July 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 92,500
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/012/2019 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 1,00,000 X 10/100 X 9/ 12
Depreciation = 6938
Total Depreciation for the year = 31,238
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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
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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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