Depreciation question with answer


M/s Dolphin, New Delhi, showed a debit balance of Rs. 32,000 to the Machinery A/c on 1st April, 2001(Original cost of the Machinery was Rs. 40,000). On 1st October, 2001 the Mill bought additional Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation. One more machinery costing Rs. 20,000 was purchased on 31st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the straight line method. On 31st March, 2004, the machinery which was purchased on 1st October, 2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c for the years 2001 – 2001, 2002 – 2003 and 2003 – 2004. 
DATE
PARTICULARS
AMOUNT
DATE
PARTICULARS
AMOUNT
1.4.01
To balance b/d
32000
31.3.02
By depreciation a/c
4800
1.10.01
To cash / bank a/c
15000
31.3.02
By balance c/d
43200
1.10.01
To cash/ bank a/c
1000





48000


48000
1.4.02
To balance b/d
43200
31.3.03
By deprecation a/c
5600
31.3.03
To cash/ bank a/c
20000
31.3.03
By balance c/d
57600


63200


63200
1.4.03
To balance b/d
57600
31.3.04
By depreciation a/c
7600



31.3.04
By cash/ bank a/c
12000



31.3.04
By balance c/d
38000


57600


57600
1.4.04
To balance b.d
38000