Reliance Ltd purchased a second-hand machine for Rs 56,000 on October 1, 2001, and spent Rs 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs 6,000 at the end of its useful life of 15 years. Moreover, an estimated cost of Rs 1,000 is expected to be incurred to recover the salvage value of Rs 6,000. Prepare Machine account and Provision for depreciation account for the first three years charging depreciation by fixed instalment method. Accounts are closed on December 31 st every year.

Reliance Ltd purchased a second-hand machine for Rs 56,000 on October

1.	Reliance Ltd purchased a second-hand machine for Rs 56,000 on October 1, 2001, and spent Rs 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs 6,000 at the end of its useful life of 15 years. Moreover, an estimated cost of Rs 1,000 is expected to be incurred to recover the salvage value of Rs 6,000. Prepare Machine account and Provision for depreciation account for the first three years charging depreciation by fixed instalment method. Accounts are closed on December 31 st every year.
Answer» Reliance Ltd purchased a second-hand machine for Rs 56,000 on October 1, 2001, and spent Rs 28,000 on its overhaul and installation before putting it to operation. It is expected that the machine can be sold for Rs 6,000 at the end of its useful life of 15 years. Moreover, an estimated cost of Rs 1,000 is expected to be incurred to recover the salvage value of Rs 6,000. Prepare Machine account and Provision for depreciation account for the first three years charging depreciation by fixed instalment method. Accounts are closed on December 31 st every year.

Discussion

No Comment Found

Related InterviewSolutions

M/s ABC Enterprises purchased a machine in the start of the year amounting to Rs 10,00,000. But as on 31st March i.e. end of the Financial Year, the market price of the machine falls to Rs 8,00,000. According to Historical cost/ cost principle, at which value will the machine will be shown in the balance sheet?
Which of the following is taken into account while determining the materiality of an amount?
Write any three objectives of Accounting Standards (AS).
On 1st January, 2018, A drew a bill on B for ₹ 10,000 payable after 3 months. B accepted the bill and returned it to A. After 10 days, A endorsed the bill to his creditor C. On the due date, the bill was dishonoured and C paid ₹ 50 as noting charges.Record the transactions in the books of A, B and C.
What ismeant by a ‘statement of affairs’? How can the profit orloss of a trader be ascertained with the help of a statement ofaffairs?
Smt. Mita Agrawal invested Rs 10,200 when MV of the share is Rs 100. She sold 60 shares when the MV was Rs 125 and sold remaining shares when the MV wasRs 90. She paid 0.1% brokerage for each trading. Find whether she made profit or loss ? and how much?
Reality is what is directly experienced through the senses.
When all the errors have been completely rectified the suspense Account will show ___ balance.
How are maintenance rehearsals different from elaborative rehearsals?
Rectifythe following errors: (i) Credit sales to Mohan Rs 7,000 were recorded as Rs 7,200. (ii) Credit purchases from Rohan Rs 9,000 were recorded as Rs 9,900. (iii) Goods returned to Rakesh Rs 4,000 were recorded as Rs 4,040. (iv) Goods returned from Mahesh Rs 1,000 were recorded as Rs 1,600.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment