Cinemugam (Kollywood)

DEPRECIATION QUESTION FOR PRACTICE  1. M/s. J.K Company, Maroda, purchased machinery for Rs.80,000 on 1 st  April, 2002. Company purchased additional machinery for Rs.36,000 on 1 st  October, 2003. The company charges depreciation @ 10% p.a. on the original cost. The financial year of the company ends on 31 st  March each year. On 30 th  September, 2004 a part of the machinery, original cost of which was Rs.30,000 on 1 st  April, 2002 was sold by the company for 22,000. Prepare Machinery Account for 3 years and give Journal Entries for the year 2002-2003. (Ans. 65600) 2. On 1 st  April, 2004 Saikripa Enterprises purchased two computers of Rs. 40,000 each. On 1 st  October, 2004 they purchased one more computer for Rs. 40,000.   On 1 st  October, 2006 they sold one of the computer, which was purchased on 1 st  April, 2004 for Rs. 18,780. Depreciation on computers was provided @10% p.a. on diminishing balance method and the financial year closes on 31 st  March every year. Prepare: Compu