Shirish Enterprises purchased a machinery costing
Rs. 36,000 on 1-4-1989 and was installed on the same date. The installation
expenses amounted to Rs. 4,000. The firm decided to charge depreciation at 10%
p.a. on straight line method. On 1-10-91 a part of machinery with an original
price of Rs. 6,000/- (including the installation charges) was sold for Rs.
3,200 and a new machinery costing Rs. 10,000 was purchased on the same date.
The firm closes its books of accounts on 31st March every year.
Prepare Machinery account and Depreciation account for the year 1989-90,
1990-91 and 1991-92 in the books of the firm.
DATE
|
PARTICULARS
|
AMOUNT
|
DATE
|
PARTICULARS
|
AMOUNT
|
1.4.89
|
To cash/bank a/c
|
36000
|
31.3.90
|
By depreciation ac
|
4000
|
1.4.89
|
To cash/ bank ac
|
4000
|
31.3.90
|
By balance c/d
|
36000
|
40000
|
40000
|
||||
1.4.90
|
To balance b/d
|
36000
|
31.3.91
|
By depreciation a/c
|
4000
|
31.3.91
|
By balance c/d
|
32000
|
|||
36000
|
36000
|
||||
1.4.91
|
To balance b/d
|
32000
|
1.10.91
|
By depreciation a/c
|
300
|
1.10.91
|
To cash bank a/c
|
10000
|
1.10.91
|
By cash bank ac
|
3200
|
1.10.91
|
By profit/loss ac
|
1300
|
|||
31.3.92
|
By depreciation a/c
|
3900
|
|||
31.3.92
|
By balance c/d
|
33300
|
|||
42000
|
42000
|
||||
1.4.92
|
To balance b/d
|
33300
|
