Depreciation Question with answers


M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1st April 2002. Company purchased additional machinery for Rs. 36,000 on 1stOctober, 2003. The company charges depreciation @10% p.a. on the original cost. The financial year of the Company ends on 31st March every year. On 30th September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1st April, 2002 was sold by the Company for Rs. 22,000. Prepare Machinery account for 3 years and give journal entries for the year 2002 – 2003. [MARCH 2009].

DATE
PARTICULARS
AMOUNT
DATE
PARTICULARS
AMOUNT
1.4.02
To cash/bank a/c
80000
31.3.03
By depreciation a/c
8000



31.3.03
By balance c/d
72000


80000


80000
1.4.03
To balance b/d
72000
31.3.04
By depreciation a/c
9800
1.10.03
To cash/ bank a/c
36000
31.3.04
By balance c/d
98200


108000


108000
1.4.04
To balance b/d
98200
30.9.04
By depreciation a/c
1500



30.9.04
By cash/ bank a/c
22000



30.9.04
By profit / loss a/c
500



31.3.05
By depreciation a/c
8600



31.3.05
By balance c/d
65600


98200


98200
1.4.05
To balance b/d
65600