39. On April 1, 2019 Jain & Sons purchased a second-hand plant costing ₹2,00,000 and spent ₹10,000 on its overhauling. It also spent ₹5,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on Oct. 31, 2022 and … Read more
38. A Limited purchased a machine on 1st July 2017 for ₹3,00,000 and on 1st January 2019 bought another machinery for ₹2,00,000. On 1st August 2019 machine bought in 2017 was sold for ₹1,60,000. Another machine was bought for ₹1,50,000 on 1st October 2019. It was decided to provide depreciation @ 10% p.a. on written … Read more
37. A limited company purchased on 01-01-2017 a plant for ₹38,000 and spent ₹2,000 for carriage and brokerage. On 01-04-2018 it purchased additional plant costing ₹20,000. On 01-08-2019 the plant purchased on 01-01-2017 was sold for ₹25,000. On the same date, the plant purchased on 01-04-2018 was sold at a profit of ₹2,800. Depreciation is … Read more
36. The following balances appear in the books of M/s Amrit: 1st April, 2022 Machinery A/c ₹60,000 Provision for depreciation A/c ₹36,000 On 1st April, 2022, they decided to dispose off a machinery for ₹78,400 which was purchased on 1st April, 2018 for ₹16,000. You are required to prepare Machinery A/c, Provision for Depreciation A/c … Read more
35. On 1st Jan. 2017, Panjim Dryfruits Ltd. bought a plant for ₹15,00,000. The company writes off depreciation @ 20% p.a. on Written Down Value Method and closes its books on 3Ist March every year. On 1st Oct. 2019, a part of the plant purchased on 1st Jan. 2017 for ₹3,00,000 was sold for ₹1,75,000. … Read more
34. On 1st June, 2017, Kedarnath Ltd. purchased a machinery for ₹27,00,000. Depreciation is provided @ 10% p.a. on diminishing balance method and the books are closed on 31st March each year. On 1st October, 2019, a part of the machinery purchased on 1st June, 2017 for ₹6,00,000 was sold for ₹3,50,000 and on the … Read more
33. On 1st September 2016, Gopal Ltd. purchased a plant for ₹10,20,000. On 1st July 2017 another plant was purchased for ₹6,00,000. The firm writes off depreciation @ l0% p.a. on original cost and its accounts are closed every year on 31st March. On 1st October 2019, a part of the second plant purchased on … Read more
32. On 1st July, 2017, X Ltd. purchased a machinery for ₹15,00,000, Depreciation is provided @ 20% p.a. on the original cost of the machinery and books are closed on 31st March each year. On 31st May, 2019, a part of this machine purchased on 1st July 2017 for ₹3,60,000 was sold for ₹2,40,000 and … Read more
31. Books of Mumbai Chemicals Ltd. showed the following balances on 1st April, 2019: Machinery A/c ₹10,00,000 Provision for Depreciation A/c ₹4,05,000 On 1st April, 2019, a machine which had a cost of ₹2,00,000 on 1st October, 2016 was sold for ₹80,000. The firm writes off depreciation @ 10% p.a. under the Reducing Balance Method … Read more
30. On 1st April, 2022, following balances appeared in the books of M/s Krishna Traders: Furniture Account ₹50,000 Provision for Depreciation on Furniture Account ₹22,000 On 1st October, 2022 a part of Furniture purchased for ₹20,000 on 1st April, 2018 was sold for ₹5,000. On the same date a new furniture costing ₹25,000 was purchased. … Read more