M/s. Green Channel purchased a second-hand machine on 1st January, 2015 for 7 1,60,000. Overhauling and...

 

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M/s. Green Channel purchased a second-hand machine on 1st January, 2015 for 7 1,60,000. Overhauling and erection charges amounted to ? 40,000. Another machine was purchased for ? 80,000 on 1* July, 2015. On 1st July, 2017, the machine installed on 1st January, 2015 was sold for ? 1,00,000. Another machine amounted to ? 30,000 was purchased and was installed on 30th September, 2017. Under the existing practice the company provides depreciation @ 10% p.a. on original cost. However, from the year 2018 it decided to adopt WDV method and to charge depreciation @ 15% p.a. You are required to prepare Machinery account for the years 2015 to 2018. M/s. Green Channel purchased a second-hand machine on 1st January, 2015 for 7 1,60,000. Overhauling and erection charges amounted to ? 40,000. Another machine was purchased for ? 80,000 on 1* July, 2015. On 1st July, 2017, the machine installed on 1st January, 2015 was sold for ? 1,00,000. Another machine amounted to ? 30,000 was purchased and was installed on 30th September, 2017. Under the existing practice the company provides depreciation @ 10% p.a. on original cost. However, from the year 2018 it decided to adopt WDV method and to charge depreciation @ 15% p.a. You are required to prepare Machinery account for the years 2015 to 2018.

Answer rating: 100% (QA)

Solution Machinery Account 112015 To Bank Ac To Bank Ac 160000 31122015 By Depreciation Ac 24000 400... View the full answer