On 1st april, 2010, plant and machinery was purchased for Rs 1,20,000. New machinery was purchased on 1st Oct, 2010, for Rs 50,000 and on 1st july, 2011, for Rs 25,000. On 1st January, 2013, a machinery of the orignal value of Rs 20,000 whish was included in the machinery purchased on 1st April,2010, was sold for Rs 6,000. Prepare plant and machinery account for three years after providing depriciation at 10% p.a. on straigh line method. Accounts are closed on 31st March every year.
Plant and Machinery Account | ||||||||
Dr. | Cr. | |||||||
Date | Particulars | Amount (Rs) |
Date | Particulars | Amount (Rs) |
|||
2010 | 2011 | |||||||
Apr.01 | Bank A/c (M1) | 1,20,000 | Mar. 31 | Depreciation A/c | ||||
M1 | 12,000 | |||||||
M2 | 2,500 | 14,500 | ||||||
Oct. 01 | Bank A/c (M2) | 50,000 | Mar. 31 | Balance c/d | ||||
M1 | 1,08,000 | |||||||
M2 | 47,500 | 1,55,500 | ||||||
1,70,000 | 1,70,000 | |||||||
2011 | 2012 | |||||||
Apr.01 | Balance b/d | 1,55,500 | Mar. 31 | Depreciation A/c | ||||
Jul. 01 | Bank A/c (M3) | 25,000 | M1 | 12,000 | ||||
M2 | 5,000 | |||||||
M3(for 9 months) | 1,875 | 18,875 | ||||||
Mar. 31 | Balance c/d | |||||||
M1 | 96,000 | |||||||
M2 | 42,500 | |||||||
M3 | 23,125 | 1,61,625 | ||||||
1,80,500 | 1,80,500 | |||||||
2012 | 2013 | |||||||
Apr.01 | Balance b/d | Jan. 01 | Depreciation A/c (on M1 for 9 months) | 1,500 | ||||
M1 | 96,000 | Bank A/c (Sale of M1) | 6,000 | |||||
M2 | 42,500 | Profit and Loss A/c (Loss on Sale) | 8,500 | |||||
M3 | 23,125 | 1,61,625 | ||||||
Mar. 31 | Depreciation on- | |||||||
M1(1,00,000 = 1,20,000-20,00@10%) | 10,000 | |||||||
M2 | 5,000 | |||||||
M3 | 2,500 | 17,500 | ||||||
Mar. 31 | Balance c/d | |||||||
M1(1,00,00-30,000) | 70,000 | |||||||
M2 | 37,500 | |||||||
M3 | 20,625 | 1,28,125 | ||||||
1,61,625 | 1,61,625 | |||||||
Working Notes: Calculation of Profit or Loss on Sale
Particulars | Amount (Rs) |
Value of M1 as on Apr. 01, 2012 | 16,000 |
Less: Depreciation for 9 months | 1,500 |
Value of M1 as on Jan. 01, 2013 | 14,500 |
Less: Sale Value | 6,000 |
Loss on Sale | 8,500 |