Fixed Installment Method

On 1st April, 2016, X Ltd. Purchased a machine costing Rs 4,00,000 and spent Rs 50,000 on its installation. The estimated life of the machinery is 10 years, after which its residual value will be Rs 50,000 only. Find the amount of annual depreciation according to the Fixed Instalment Method and prepare Machinery Account for the first three years. The books are closed on 31st March every year.

A company whose accounting year is a financial year, purchased on 1st July 2015 Machinery costing Rs 30,000. If purchased further machinery on 1st January, 2016 costing Rs 20,000 and on 1st October, 2016 costing Rs 10,000. On 1st April, 2017, one-third of the machinery installed on 1st July, 2015 became obsolete and was sold for Rs 3,000. Show how Machinery Account would appear in the books of the company. It being given that machinery was depreciated by Fixed Instalment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2018?

{:("Following balances appear in the books of X Ltd. as on 1st April, 2018: ",₹),( "Machinery A/c","5,00,000"),("Provision for Depreciation A/c","2,25,000"):} The machinery is depreciated "@ "10% p.a. on the Fixed Instalment Method. The accounting year being April-March. On 1st October, 2018, a machinery which was purchased on 1st July, 2015 for Rs 1,00,000 was sold for Rs 42,000 plus CGST and SGST "@ "6% each and on the same date a new machine was purchased for Rs 2,00,000 paying IGST "@ "12% . Prepare Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2019.

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.

Fluctuating Installment Method

Rs. 12800 is payable after 3 years. If is to be paid in 3 installments each year. First installment is half of the second & one-third of the third installment. Find each installment if rate of interest is 10% per annum.

A farmer borrows ₹ 1000 and agrees to repay with a total interest of ₹ 140 in 12 installments, each installment being less than the preceding installment by ₹10. What should be his first installment?

Mr. Shah borrows ₹4000 and agrees to repay with a total interest of ₹500 in 10 installments, each installment being less than the preceding installment by ₹10. What should be the first and the last installment?