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Berlia Ltd purchased a second hand machine for Rs 56,000 on July 1, 2001 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 1, 2002, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation. (a) Depreciation is provided on machinery 10% per annum on original cost method annually on December 31. Prepare Machinery account and Depreciation account from the year 2001 to 2004. (b) Prepare Machinery account and Depreciation account from the year 2001 to 2004. If depreciation is provided on machinery 10% per annum on written down value method annually on December 31. |
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Answer» Berlia Ltd purchased a second hand machine for Rs 56,000 on July 1, 2001 and spent Rs 24,000 on its repair and installation and Rs 5,000 for its carriage. On September 1, 2002, it purchased another machine for Rs 2,50,000 and spent Rs 10,000 on its installation. (a) Depreciation is provided on machinery 10% per annum on original cost method annually on December 31. Prepare Machinery account and Depreciation account from the year 2001 to 2004. (b) Prepare Machinery account and Depreciation account from the year 2001 to 2004. If depreciation is provided on machinery 10% per annum on written down value method annually on December 31. |
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