the first three years charging depreciation by fixed installment Method. Accounts are closed on December , every year. (Ans: Balance of provision for depreciation account as on . .
Purchased a second hand machine for Rs. , on July , and spent Rs. , on its repair and installation and Rs. , for its carriage.
On September , , it purchased another machine for Rs. , , and spent Rs. , on its installation. (a) Depreciation is provided on machinery @ % p.a on original cost method annually on December .
Prepare machinery account and depreciation account from the year to . (b) Prepare machinery account and depreciation account from the year to , if depreciation is provided on machinery @ % p.a. on written down value method annually on December . (Ans: [a] Balance of Machine account as on .
. Rs. , , . [b] Balance of Machine account as on .
Ganga Ltd. purchased a machinery on January , for Rs. , , and spent Rs. , on its installation.
On September , it purchased another machine for Rs. , , . On May , it purchased another machine for Rs. , , (including installation expenses).
Depreciation was provided on machinery @ % p.a. on original cost method annually on December . Prepare: (a) Machinery account and depreciation account for the years , , and . (b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years , , and .
(Ans: [a] Balance of machine account as on . . Rs. , , .
[b] Balance of provision for dep. account as on . . Rs.
, , ). . Azad Ltd. purchased furniture on October , for Rs.
, , . On March , it purchased another furniture for Rs. , , . On July , it sold off the first furniture purchased in for Rs.
, , . Depreciation is provided at % p.a. on written down value method each year. Accounts are closed each year on March .
Prepare furniture account, and accumulated depreciation account for the years