On 1 st April, 2024, Supervisor & Co. which depreciates its machinery @10% p.a. on diminishing balance method, had - 29,16,000 to the debit of…
CA Foundation · Accounting · MTP · April 2025
On 1 st April, 2024, Supervisor & Co. which depreciates its machinery @10% p.a. on diminishing balance method, had - 29,16,000 to the debit of Machinery Account. On 1 st October, 2024, part of machinery purchased on 1 st April, 2022 for 240,000 was sold for 1,35,000. Also, a new machinery at a cost of 4,50,000 was purchased on 1 st October, 2024 and installed on the same date and installation charges being - 24,000. The company changed the method of depreciation from diminishing balance method to straight line method with effect from 1 st April, 2024. The rate of depreciation remains the same. Show the Machinery Account for the year 2024-25.
Suggested Answer and Working Notes:
Computation of written down value of the remaining asset as on 01.04.2024 Total WDV of the machinery as on 01.04.202429,16,000 Less: WDV of the part of the machinery sold as on 01.04.2024 (W.N. 1) (₹ 1,94,400) Written down value of the remaining asset as on 01.04.202427,21,600
Topics: Depreciation and Amortisation
Related Questions in this Topic
- A firm purchased a second-hand machinery on 1st April, 2023 for ₹ 30,00,000 subsequent to which ₹ 4,00,000 were spent on...
- M/s. Surya Prakash purchased a second-hand machine on 1st April, 2022 for ₹ 1,60,000. Overhauling and erection charges a...
- M/s. Bharat Electricals purchased a second -hand machine on 1st April, 2023 for 3,20,000. Overhauling and erection charg...
- State with reasons, whether the following statements are true or false: (i) Accrual concept implies accounting on cash ...
- Gaur associates bought a computer set on 01.04.2021 for 6,00,000 and charged depreciation @ 20% p.a. on diminishing bala...