M/s Omkar Enterprise Jalgoan acquired a printing machine for ₹75,000 on 1st Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on written Down Value Method, on 31st march every year. Prepare Printing Machine Account for the first four years. Prepare Printing Machine Account for the first four years.

Practical Problems on Written Down Value Method


1. M/s Omkar Enterprise Jalgoan acquired a printing machine for ₹75,000 on 1st Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on written Down Value Method, on 31st march every year.


Prepare Printing Machine Account for the first four years.

Solution:
In the Books Of M/s Omkar enterprise Jalgoan

Printing Machine Account
  
Date Particulars JF Amount Date Particulars JF Amount 
2015    2016    
1st
Oct 		To Cash/Bank A/c  80,000 31st
March 		By Depreciation   8,000 
    31st
march 		By Balance c/d  72,000 
   80,000    80,000 
2016    2017    
1st
April 		To Balance b/d  72,000 31st
March 		By Depreciation   16,650 
        
2017        
1st
Jan 		To Cash / Bank A/c  45,000 31st
March 		By Balance c/d  1,00,350 
        
   1,17,000    1,17,000 

2017    2018    
1st
April 		To Balance b/d  1,00,350 31st
March 		By Depreciation  20,070 
        
    31st
March 		By Balance c/d  80,280 
        
   1,00,350    1,00,350 
2018    2019    
1st
April 		To Balance b/d  80,280 31st
March 		By Depreciation  16,056 
    31st
march 		By Balance c/d  64,224 
        
   80,280    80,280 
        
Calculation & Explanation:

In the Written Down Value Method depreciation is charged on the original value of Machine in first year and from the second or next year it is charged on opening balance of every year.

1. Machine purchased on 1st Oct 2015 (M1)
75,000 (+) 5,000 = 80,000
80,000*20%*6/12= 8,000/-

2. (M1) 31st March 2017
 72,000*20% = 14,400/- 

Machine purchased on 1st Jan 2017 (M2)
45,000*20%*3/12 = 2,250/-

3. (M1) 31st March 2018
57,60*20% = 11,520/-

(M2) 31st march 2018
42,750*20% = 8,550/-

4. (M1) 31st march 2019
46,080*20% = 9,216/-

(M2) 31st march 2019
34,200*20% = 6,800/-

Comments

Post a Comment

Popular posts from this blog

Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments with the help of following information

Trial Balance as on 31st March, 2019   Debit Balance   Amount   Credit Balance   Amount   Land & Building   40,000  Capital A/c Sun  33,500   Moon  33,500  Furniture  18,000  Current A/c: Sun   6,000  Machinery  40,000  Sundry Creditors  25,000  (Purchased on 01/07/18)    Bank Overdraft   10,000  Goodwill  2,000  Reserve Fund  5,000  Wages  2,000  Provident Fund  5,000  Current A/c: Moon  4,000      8% Debentures  8,000      (Purchased on (01/10/18)        Providend Fund Investment  3,500      Stock of Postal stamps  500        1,18,000     1,18,000               Adjustments:   1. Partners are entitled to get salary 6,000 p.a. in additional to their profit & loss shari...
Read more

CLASS 11th BOOK KEEPING & ACCOUNTANCY

Class 11 Chapter 3 - Journal Entry Solution     Class 11 Chapter 4 - Ledger Accounts   Class 11 Chapter 5 - Subsidiary Book Solution   Class 11 Chapter 6 - Bank Reconciliation Statement     Class 11 Chapter 7 - Depreciation       Class 11 Chapter 8 - Rectification of Errors Solution in Accounting Journal Entry   Class 11 Chapter 9 - Final Account of Proprietary Concern         Maharashtra board Class 11th chapter 3 Journal Entry Solutions
Read more

Accounts Solutions | Class 12th Book-Keeping and Accountancy | Maharashtra Board HSC |

Maharashtra State Board HSC Notes Online Solution for Free Check Out the Sum Solutions. This are the HSC notes online with Calculation and explanatory notes. Class 12th Chapter 1. Introduction to Partnership Final Accounts Class 12th Chapter 2. Accounts of 'Not for Profit' Concerns Class 12th   Chapter  3 . Reconstitution of Partnership (Admission of Partner) Class 12th   Chapter 7. Bills of Exchange Class 12th Chapter 8. Company Accounts: Issue of Shares "Other Chapters Coming Soon"
Read more

Virat Kohli - Profile Information

Attribute Details
Name Virat Kohli
Born November 5, 1988 (35 years)
Birth Place Delhi, India
Height 5 ft 9 in (175 cm)
Role Batsman
Batting Style Right Handed Bat
Bowling Style Right-arm medium