On the same date the machineĭepreciation was provided at 10% p.a. On 1.7.09 the machine purchased on was sold for Rs.Ĥ,000.
On 1.7.08 it again purchasedĪnother machine for Rs. Q Ltd, purchased on 1st January, 2008 a machine for Rs. Special Points (a) Depreciation under diminishing balance method, (b) Purchase of Assets on differentĭates, (c) Sale and profit or loss on sale. Give Journal entries to record the above transactions. 20,000 (cash) and replaced thereafter by a new machineĬosting Rs.
The Machine concerned whose original cost had been the accumulated provisionįor depreciation went up to Re. 5,000 was provided for depreciation in the current year. Special Points : (a) Use of Provision for Depreciation Account, (b) Journal Entries, (c) Sale and Profit onĪfter Rs. Please wait for the answer of other depreciation problems. It is real account and all purchasing of assets will debit and sale will credit in this account and balance will show in the asset side of balance sheet.
Now, it is easy to make machinery account. Rajeev Mantya! You have to calculate depreciation, loss on sale of machinery first before making machinery account. Assume that the accounting year of the Company ends on 31st December Show how the Machinery Account would appear in the ledger of the Company for the yearsĢ006. The machinery was to be depreciated by Fixed Instalment Method at On one-third of the machinery which was purchased on became obsolete and was sold for Rs.
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