24. X Ltd. purchased a plant on 1st July, 2020 costing ₹5,00,000. It purchased another plant on 1st September, 2020 costing ₹3,00,000. On 3Ist December, 2022, the plant purchased on 1st July, 2020 got out of order and was sold for ₹2,15,000. Another plant was purchased to replace the same for ₹6,00,000. Depreciation is to … Read more
23. A company purchased second-hand machinery on 1st May, 2019 for ₹5,85,000 and immediately spent ₹15,000 on its erection. On 1st October, 2020, it purchased another machine for ₹4,00,000. On 3Ist July, 2021, it sold off the first machine for ₹2,50,000 and bought another for ₹4,20,000. On 1st November, 2022, the second machine was also … Read more
22. X Ld. which closes its books of account every year on 31st March, purchased on 1st October, 2019 machinery costing ₹4,40,000. It purchased further machinery on 1st April, 2020 costing ₹5,20,000. On 30th June, 2021, the first machine was sold for ₹2,50,000 and on the same date a fresh machine was installed at a … Read more
21. On 1st July 2015, ABC Ltd. purchases 4 machines for ₹80,000 each. The accounting year of the company ends on 31st March every year. Depreciation is provided at the rate of 15% p.a. on original cost. On 1st April, 2017 one machine was sold for ₹50,000 and on 1st January, 2019 a second machine … Read more
20. On 1st April 2016, a Company purchased 6 machines for ₹50,000 each. Depreciation at the rate of 10% p.a. is charged on Straight Line Method. The accounting year of the Company ends on 31st March and the depreciation is credited to a separate ‘Provision for Depreciation Account’. On 1st October, 2018, one machine was … Read more
19. On July 1, 2020 Pushpak Ltd. purchased a machinery for ₹5,70,000 and paid ₹30,000 for its overhauling and installation. Depreciation is provided @ 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2023 for a sum of ₹1,60,000, You are … Read more
18. A Company, which closes its books on 31st March every year, purchased on 1st July, 2017, machinery costing ₹30,000. It purchased further machinery on 1st January, 2018, costing ₹20,000 and on 1st October, 2018, costing ₹10,000. On 1st April, 2019, one-third of the machinery installed on 1st July, 2017, became obsolete and was sold … Read more
17. Raja Textiles Co. which closes its books on 31st March, purchased a machine on 1-4-2016 for ₹50,000. On 1-10-2017, it purchased an additional machine for ₹30,000. The part of the machine which was purchased on 1-4-2016 costing ₹10,000 was sold for ₹3,600 on 30th Sept., 2019. Prepare the Machine Account for four years, if … Read more
16. The Sameer Transport Company purchased 10 Trucks at ₹90,000 each on 1st April 2019. On 1st October 2021 one of the Trucks was involved in an accident and is completely destroyed. ₹56,200 was received from the Insurance company in full settlement. On the same date another truck was purchased by the company for the … Read more
15. Ashoka Ltd. bought a machine on 1st April, 2020 for ₹2,40,000 and spent ₹4,000 on its carriage and ₹6,000 towards installation cost. On 1st July, 2021 it purchased a second-hand machinery for ₹75,000 and spent ₹25,000 on its overhauling. On 1st January, 2023 it decided to sell the machinery bought on 1st April, 2020 … Read more