Depreciation Question with answers

M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1^st April 2002. Company purchased additional machinery for Rs. 36,000 on 1^st October, 2003. The company charges depreciation @10% p.a. on the original cost. The financial year of the Company ends on 31^st March every year. On 30^th September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1^st April, 2002 was sold by the Company for Rs. 22,000. Prepare Machinery account for 3 years and give journal entries for the year 2002 – 2003. [MARCH 2009].

DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
1.4.02	To cash/bank a/c	80000	31.3.03	By depreciation a/c	8000
			31.3.03	By balance c/d	72000
		80000			80000
1.4.03	To balance b/d	72000	31.3.04	By depreciation a/c	9800
1.10.03	To cash/ bank a/c	36000	31.3.04	By balance c/d	98200
		108000			108000
1.4.04	To balance b/d	98200	30.9.04	By depreciation a/c	1500
			30.9.04	By cash/ bank a/c	22000
			30.9.04	By profit / loss a/c	500
			31.3.05	By depreciation a/c	8600
			31.3.05	By balance c/d	65600
		98200			98200
1.4.05	To balance b/d	65600