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Question -

A Plant was purchased on 1st July, 2015 at a cost of Rs 3,00,000 and Rs 50,000 were spent on its installation. The depreciation is written off at 15% p.a. on the straight line method. The plant was sold for Rs 1,50,000 on October 01, 2017 and on the same date a new Plant was installed at the cost of Rs 4,00,000 including purchasing value. The accounts are closed on December 31 every year.

Show the machinery account and provision for depreciation account for 3 years



Answer -

Plant Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2015

 

 

 

2015

 

 

 

July.01

Bank

 

3,50,000

Dec.31

Balance c/d

 

3,50,000

 

 

 

3,50,000

 

 

 

3,50,000

 

 

 

 

 

 

 

 

2016

 

 

 

2016

 

 

 

Jan.01

Balance b/d

 

3,50,000

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

3,50,000

 

 

 

3,50,000

 

 

 

3,50,000

 

 

 

 

 

 

 

 

2017

 

 

 

2017

 

 

 

Jan.01

Balance b/d

 

3,50,000

Oct.01

Provision for Depreciation

 

1,18,125

Oct.01

Bank

 

4,00,000

Oct.01

Bank

 

1,50,000

 

 

 

 

Oct.01

Profit and Loss

 

81,875

 

 

 

 

Dec.31

Balance c/d

 

4,00,000

 

 

 

7,50,000

 

 

 

7,50,000

 

 

 

 

 

 

 

 

 

Provision for Depreciation Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2015

 

 

 

2015

 

 

 

Dec.31

Balance c/d

 

26,250

Dec.31

Depreciation

 

26,250

 

 

 

26,250

 

 

 

26,250

 

 

 

 

 

 

 

 

2016

 

 

 

2016

 

 

 

Dec.31

Balance b/d

 

78,750

Jan.01

Balance c/d

 

26,250

 

 

 

 

Dec.31

Depreciation

 

52,500

 

 

 

78,750

 

 

 

78,750

 

 

 

 

 

 

 

 

2017

 

 

 

2017

 

 

 

Oct.01

Plant

 

1,18,125

Jan.01

Balance b/d

 

78,750

 Dec.31

Balance c/d

 

15,000

Oct.01

Depreciation (i) (9 months)

 

39,375

 

 

 

 

Dec.31

Depreciation (ii) (3 months)

 

15,000

 

 

 

1,33,125

 

 

 

1,33,125

 

 

 

 

 

 

 

 

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