14. On 1st July, 2020, Alpha Ltd. purchases second-hand machinery for ₹ 20,000 and spends ₹ 73,000 on reconditioning and installing it. On 1st January, 2021, the firm purchases new machinery worth ₹ 12,000. On 30th June, 2022, the machinery purchased on 1st January, 2021, was sold for ₹ 8,000 and on 1st July, 2022, … Read more
13. A company whose accounting year is a financial year, purchased on 1st July, 2021 machinery costing ₹ 30,000. It purchased further machinery on 1st January, 2022 costing ₹ 20,000 and on 1st October, 2022 costing ₹ 10,000. On 1st April, 2023, one-third of the machinery installed on 1st July, 2021 became obsolete and was … Read more
12. On 1st April, 2010, Plant and Machinery was purchased for ₹ 1,20,000. New machinery was purchased on 1st October, 2010 for ₹ 50,000 and on 1st July, 2011, for ₹ 25,000. On 1st January, 2013, a machinery of the original value of ₹ 20,000 which was included in the machinery purchased on 1st April, … Read more
11. A Van was purchased on 1st April, 2020 for ₹ 60,000 and ₹ 5,000 was spent on its repair and registration. On 1st October, 2021 another van was purchased for ₹ 70,000. On 1st April, 2022, the first van purchased on 1st April, 2020 was sold for ₹ 45,000 and a new van costing … Read more
10. On 1st April, 2020, Gurman Toys purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its erection. On 1st October, 2020, an additional machinery costing ₹ 1,00,000 was purchased. On 1st October, 2022, the machine purchased on 1st April, 2020 was sold for ₹ 1,43,000 and on the same date, a new … Read more
9. On 1st April, 2020, Harish Traders purchased 5 machines for ₹ 60,000 each. On 1st April, 2022, one of the machines was sold at a loss of ₹ 8,000. On 1st July, 2023, second machine was sold at a loss of ₹ 12,500. A new machine was purchased for ₹ 1,00,000 on 1st October, … Read more
8. From the following transactions of a concern, prepare the Machinery Account for the year ended 3lst March, 2024: 1st April, 2023 : Purchased a second-hand machinery for ₹ 40,000. 1st April, 2023 : Spent ₹ 10,000 on repairs for making it serviceable. 30th September, 2023 : Purchased additional new machinery for ₹ 20,000. 31st … Read more
7. On 1st April, 2017, a firm purchased a machinery for ₹ 1,05,000. The scrap value was estimated to be ₹ 5,000 at the end of asset’s 10 years’ life. Straight Line Method of depreciation was used. The accounting year ends on 31st March every year. The machine Was sold for ₹ 6,000 on 31st … Read more
6. On 1st April, 2020, furniture costing ₹ 55,000 was purchased. It is estimated that its useful life is 10 years at the end of which it will be sold for ₹ 5,000. Additions are made on 1st April, 2021 and 1st October, 2023 to the value of ₹ 9,500 and ₹ 8,400 (Residual values … Read more
5. On 1st April, 2021, Starex purchased a machine costing ₹ 4,00,000 and spent ₹ 50,000 on its installation. The estimated life of the machinery is 10 years, after which its residual value will be ₹ 50,000. Find the amount of annual depreciation according to the Fixed Instalment Method and prepare Machinery Account for the … Read more