Workmen | A manufacturing concern, whose books are closed on 31st March, purchased a machine

A manufacturing concern, whose books are closed on 31st March, purchased a machine for ~ 1,50,000 on 1st April, 2011. Additional machinery was acquired for ~ 40,000 on 30th September, 2012 and for ~ 25,000 on 1st April, 2014. Certain machinery, which was purchased for ~ 40,000 on 30th September, 2012 was sold for ~ 34,000 on 30th September, 2014. Give the Machinery Account for the year ending 31st March, 2015 taking into account depreciation at 10% per annum on the written down value. The following relate to the business of a manufacturer for the year ended 31.12.2014 : (a) The debit balance of the Plant and Machinery Account as on 1.1.2014 was ~ 2,68,400. (b) During the year three machines standing in the books at ~ 12,860 were sold for ~ 6,000. (c) On 1.4.2014, new machines costing ~ 58,800 were purchased and were installed by the manufacturer’s workmen at an expenditure of ~ 2,160 (i.e. wages ~ 1,740 and materials ~ 420). (d) It is the practice of the business to write off 15% depreciation on all additions to plant and 20% on all old plants. Prepare Plant and Machinery Account as it would appear on 31.12.2014.

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