24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12.00,000. On Oct 1, 2017, a part of the machinery purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of k providing 10% p.a. depreciation on the original cost of the machinery. Show the necessary ledger accounts assuming that a. "Provision for Depreciation Account' is not maintained b. 'Provision for Depreciation Account' is maintained
24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12.00,000. On Oct 1, 2017, a part of the machinery purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of k providing 10% p.a. depreciation on the original cost of the machinery. Show the necessary ledger accounts assuming that a. "Provision for Depreciation Account' is not maintained b. 'Provision for Depreciation Account' is maintained
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 8P
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Show the Machinery Account for the year ended March 31, 2018.
24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12,00,000. On Oct 1, 2017, a part of the machinery
purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of
Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of
e2k providing 10% p.a. depreciation on the original cost of the machinery.
Show the necessary ledger accounts assuming that
a. 'Provision for Depreciation Account' is not maintained
b. 'Provision for Depreciation Account' is maintained](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17a1cc4b-bced-443e-a655-a69e4e948416%2F1631071a-3474-4cd3-883f-df4834355d73%2F0ri3eti_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Show the Machinery Account for the year ended March 31, 2018.
24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12,00,000. On Oct 1, 2017, a part of the machinery
purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of
Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of
e2k providing 10% p.a. depreciation on the original cost of the machinery.
Show the necessary ledger accounts assuming that
a. 'Provision for Depreciation Account' is not maintained
b. 'Provision for Depreciation Account' is maintained
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