Question

From the following transactions of a concern, prepare the Machinery Account for ended 31at March, 2015: 1st April, 2014: Purchased second-hand machinery for Rs.40,000. 1st April, 2014: Spent Rs.10,000 on repairs for making it serviceable. 30th September, 2014: Purchased additional new machinery fort 20,000. 31st December, 2014: Repairs and renewals of machinery Rs.3,000. 31st March, 2015 :Depreciate the machinery at 10% p.a.

Answer 1

Note : Repair and renewal made on December 31,2014 Will not be recorded in machinery account because , this repair was after putting the Machiney in to use.