Depreciation ( - ) = , x Rs. , = Illustration Based on data given in question number record journal entries and prepare Machine account, Depreciation account and Provision for Depreciation account for the first years if provision for depreciation account is maintained by the firm. Solution Books of Mehra and Sons Machine Account Amounts Oct. , , , , Oct.
(Installation expenses) , , , , , , , , , , , , Provision for Depreciation Account Amounts , , , , Apr. , , , Depreciation Account Provision for Mar. Profit & Loss Deprection Provision for Mar. Profit & Loss Provision for Mar.
Profit & Loss Illustration M/s. Dalmia Textile Mills purchased machinery on April , for Rs. , , on credit from M/s Ahuja and sons and spent Rs. , for its installation.
Depreciation is provided @ % p.a. on written down value basis. Prepare Machinery Account for the first three years. Books are closed on March , every year.
Solution Books of Dalmia Textiles mills Machinery Account , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Working Notes . Calculation of the amount of depreciation (Rs.) Original cost on . . , , (i.e.
, , + , ) Less: Depreciation for - ( , ) WDV on . . , , Less: Depreciation for - ( , ) WDV on . .
, , Less: Depreciation for - ( , ) WDV on . . , , Illustration M/s Sahani Enterprises acquired a printing machine for Rs. , on July , and spent Rs.
, on its transport and installation. Another machine for Rs. , was purchased on January , . Depreciation is charged at the rate of % on written down value.
Prepare Printing Machine account. Solution Books of Sahani Enterprises Printing Machine Account Jul. , , , , , , , , , , , , , Mar. , , , , , Working Notes (Rs.) Orignal cost machine purchased on July , , (–) Depreciation till Mar.