Page 103 - DEBK-XI(2020)

14.4 Double Entry Book Keeping—CBSE XI

Solution:
Dr. MACHINERY ACCOUNT Cr.
Date Particulars ` Date Particulars `
2010 2010
April 1 To Bank A/c (Mach. I) 30,000 Dec. 31 By Depreciation A/c:
Oct. 1 To Bank A/c (Mach. II) 20,000 Mach. I 2,250
(30,000 × 9/12 × 10/100)
Mach. II 500 2,750
(20,000 × 3/12 × 10/100)
Dec. 31 By Balance c/d:
Mach. I (30,000 – 2,250) 27,750
Mach. II (20,000 – 500) 19,500
50,000 50,000
2011 2011
Jan. 1 To Balance b/d: Dec. 31 By Depreciation A/c:
Mach. I 27,750 Mach. I 3,000
Mach. II 19,500 (30,000 × 10/100)
July 1 To Bank A/c (Mach. III) 10,000 Mach. II 2,000
(20,000 × 10/100)
Mach. III 500 5,500
(10,000 × 10/100 × 6/12)
Dec. 31 By Balance c/d:
Mach. I 24,750
(27,750 – 3,000)
Mach. II 17,500
(19,500 – 2,000)
Mach. III 9,500 51,750
(10,000 – 500)
57,250 57,250
2012 2012
Jan. 1 To Balance b/d: Jan. 1 By Bank A/c (Sale) 3,000
Mach. I 24,750 Jan. 1 By Loss on Sale of Machinery A/c 5,250
Mach. II 17,500 (Profit and Loss A/c) (Note 2)
Mach. III 9,500 Dec. 31 By Depreciation A/c:
Mach. I 2,000
(30,000 – 10,000) × 10/100
Mach. II 2,000
(20,000 × 10/100)
Mach. III 1,000 5,000
(10,000 × 10/100)
By Balance c/d:
Mach. I 14,500
(16,500* – 2,000)
Mach. II 15,500
(17,500 – 2,000)
Mach. III 8,500 38,500
(9,500 – 1,000)
51,750 51,750
2013
Jan. 1 To Balance b/d 38,500

*Book value as on 1st January, 2012 of remaining 2/3 Mach. I = ` 24,750 × 2/3 = ` 16,500.