Basaria Confectioner bought a cold storage plant on July 01, 2014 for `Rs.` 1,00,000. Compare the amount of depreciation charged for first three years using:
Rate of depreciation @ `10%` on original cost basis,
Basaria Confectioner bought a cold storage plant on July 01, 2014 for `Rs.` 1,00,000. Compare the amount of depreciation charged for first three years using:
Rate of depreciation @ `10%` on original cost basis,
Rate of depreciation @ `10%` on original cost basis,
Text Solution
Verified by Experts
Depreciation for 1 year (2014-15) = `Rs.` 7500 (Charged for 9 months)
|
Topper's Solved these Questions
DEPRECIATION , PROVISIONS AND RESERVES
NCERT|Exercise TEST YOUR UNDERSTANDING -III|2 VideosDEPRECIATION , PROVISIONS AND RESERVES
NCERT|Exercise QUESTIONS FOR PRACTICE (SHORT ANSWERES)|13 VideosDEPRECIATION , PROVISIONS AND RESERVES
NCERT|Exercise TEST YOUR UNDERSTANDING -I|10 VideosCASH FLOW STATEMENT
NCERT|Exercise Numerical Questions|12 VideosFINANCIAL STATEMENTS - I
NCERT|Exercise TEST YOUR UNDERSTANDING-II|4 Videos
Similar Questions
Explore conceptually related problems
Reliance Ltd. Purchased a second hand machine for Rs. 56,000 on October 01, 2011 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 installment Method. Accounts are closed on March 31, every year.
On July 01, 2010, Ashok Ltd. Purchased a Machine for Rs. 1,80,000 and spent Rs. 12,000 on its installation. At the time of purchase it was estimated that the effective commercial life of the machine will be 12 years and after 12 years its salvage value will be Rs. 12,000 Prepare machine account and depreciation Account in the books of Ashok Ltd. For first three years, if depreciation is written off according to straight line method. The account are closed on December 31st, every year
On April 01, 2010, Bajrang Marbles purchased a Machine for Rs. 1,80,000 and spent Rs. 10,000 on it s carriage and Rs. on its installation. It is estimated that its working life is 10 years and after 10 years its scrap value will be Rs. 20,000 (a) Prepare Machine account and Depreciation account for the first four years by providing depreciation on straight line method. Accounts are closed on March 31st every year (b) Prepare Machine account, Depreciation account and Provision for depreciation account (or accumulated depreciation account) for the first four years by providing depreciation using straight line method accounts are closed on March 31 every year.
On April 01, 2015, following balances appeared in the books of M/s Kanishka Traders: Furniture account Rs. 50,000, Provision for depreciation of furniture Rs. 22,00. On October 01, 2015 a part of furniture purchased for Rupees 20,000 in April 01, 2011 was sold for Rs. 5,000. On the same date a few furniture costing Rs. 25,000 was purchased. the depreciation was provided @ 10% p.a. on original cost of the asset and no depreciation was charged on the asset om the year of sale. Prefare funiture account and provision for depreciation account for the year ending March 31, 2016
Following balances appear in the books of Goyal Brothers: On 1st April, 2018, they decided to sell a machine for Rs 2,00,000 which was purchased on 1st April, 2015 for Rs 3,00,000. Prepare Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2019 assuming that the firm has been charging depreciation "@ "10% p.a. on the Straight Line Method.
Saraswati Ltd. purchased a machinery costing Rs. 10,00,000 on January 01, 2011. A new machinery was purchased on 01 May, 2012 for Rs. 15,00,000 and another on July 01, 2014 for Rs. 12,00,000. A part of the machinery which originally cost Rs. 2,00,000 in 2011 was sold for Rs. on April 30, 2014. Show the machinery account, provision for depreciation account and machinery disposal account from 2011 to 2015 if depreciation is provided at 10% p.a. on original cost and account are closed on December 31, every year.
M/s Nishit printing press bought a printing machine for Rs. 6,80,000 on April 01,2015. Depreciation was provided on straight line basis at the rate of 20% on original cost. On April 01, 2017 a modification was made in the machine to increase its technical reliability for Rs. 70,000. On the same date, an important component of the machine was replaced for Depreciation, Provisions and Reserves Rs. 20,000 due to excessive wear and tear. Routine maintenance expenses during the year are Rs. 5,00 Prepare machinery account, provision for depreciation account. Show the working notes accordingly for the year ending March 31, 2018.
Berlia Ltd. Purchased a second hand machine for Rs. 56,000 on July 01, 2015 and spent Rs. 24, 000 on its repair and installatio and Rs. 5,000 for its carriage. On September 01, 2016, it purchased another machine Rs. 2,50,000 and spent Rs. 10,000 on its installation. (a) Depreciation is provided on machinery @ 10% p.a on original cost method annually on December 31. Prepare machinery account and depreciation account from the year 2015 to 2018. (b) Prepare machinery account and depreciation account from the year 2011 to 2018, if depreciation is provided on machinery @ 10% p.a. on written down value method annually on December 31.
M/s Singhania and Bros. purchased a plant of Rs . 5,00,000 on April o1.2017. and spent Rs .50,000 for its installation. The salvage value of the after its useful life of 10 years is estimated to be Rs . 10,000. Record journal entries for the year 2016-17 and draw up Plant account and Depreication Account for first three given theat the depreciation is charged using straight line method if : (i) The books of account close on March 31 every year, and (ii) The firm charges depreciation to the asset account
Following balances appeared in Machinery Account and Accumulated Depreciation Account in the books of Jai Bharat Ltd.: Additional Information: Machinery costing Rs. 2,65,000 on which accumulated depreciation was Rs. 1,00,000, sold for Rs. 75,000. You are required to: (i) Compute amount of machinery purchasel, depreciation chareged for the year and loss on sale of machinery. How shall each of the items related to machinery be shown in Cash Flow Statement?