1. M/s Jalaram Mill, Mulund, showed a debit balance of Rs.

32,000 to the Machinery A/c on 1 st April,

2001(Original cost of the Machinery was Rs. 40,000). On 1 st October, 2001 the Mill bought additional
Machinery for Rs. 15,000 and spent Rs. 1,000 for its installation. One more machinery costing Rs. 20,000
was purchased on 31st March, 2003. Depreciation is charged on 31st March, every year at 10% p.a. under the
Diminishing Balanced Method. On 31st March, 2004, the machinery which was purchased on 1 st October,
2001 was sold for Rs. 12000. Prepare Machinery A/c and Depreciation A/c for the years 2001 – 2001, 2002
– 2003 and 2003 – 2004. (February, 2008)

2. On 1st April, 2004 Saikripa enterprises purchased two computers of Rs. 40,000 each. On 1st October, 2004
they purchased one more computer for Rs. 40,000. On 1st October, 2006 they sold one of the computer,
which was purchased on 1st April, 2004 for Rs. 18,780. Depreciation on computers was provided @10%
p.a. on diminishing balance method and the financial year closes on 31st March every year. Prepare
Computer account and depreciation account for the years 2004-05, 2005-06 and 2006-07. (September
2008)

3. Swift Internationals purchased furniture of Rs. 48,000 on 1st April, 2001. On 1st October, 2001 additional
furniture of Rs. 32,000 was purchased. On 1st October 2003 a part of furniture for which original cost was
Rs. 8,000 as purchased on 1-4-2001 was sold for Rs. 4,000. On the same date new furniture was purchased
for Rs. 16,000. Show furniture account and depreciation account for 3 years 2001 – 2002, 2002 – 2003 and
2003 – 2004 assuming that:
i. Financial year closes on 31st March every year.
ii. Depreciation is charged at 15% p.a. on fixed instalment basis.

4. On 1 – 1 – 1992 M/s Modern Traders purchased furniture for Rs. 15,000. On 1 – 7 – 1992 additional
furniture was purchased for Rs. 8,000. On 30 – 6 – 1993 the furniture purchased on 1 – 1 – 1992 was sold
for Rs. 10,000 and on 1 – 7 – 1993 new furniture was purchased for Rs. 12,000. The firm charged
depreciation at 10% p.a. under the reducing balance method. Prepare furniture account and deprecation
account for the years 1992, 1993, 1994 assuming that the accounting year of the firm is calendar year.

5. Mona Trading Company of Amravati purchased machinery for Rs. 65,000 on 1 st January, 1992 and
immediately spent Rs. 5,000 on its fixation and erection. In the same year on 1 st July, additional machinery
costing Rs. 30,000 was purchased. On 1 st July 1994 the machinery purchased on 1 st January, 1992 became
obsolete and was sold for Rs. 51,000. On 1-10-94 a new machine was also purchased for Rs. 41,000.
Depreciation was provided annually on 31st December at the rate of 12% Per annum on fixed instalment
method. Prepare Machinery account and depreciation account from 1992 – 1994.

6. On 1st July, 1992, Ajanta Traders, Pune, acquired a building for Rs. 8,00,000. On 1st April, 1993, an
extension was made to the above building by spending Rs. 4,00,000. On 1st October 1994, half of the
building was sold through a broker for Rs. 5,60,000 and brokerage at 2% of the selling price was paid.
Depreciation is charged on 31st March every year at 10% p.a. under the Diminishing Balance Method.
Prepare the Building Account and the Depreciation account for three years.

7. On 1-1-2002 Champaklal & Sons purchased furniture for Rs. 15000. On 1-7-2002 additional furniture was
purchased for Rs. 8000. On 30-6-2003 the furniture purchased on 1-1-2002 was skid for Rs. 12,000. The
firm charges depreciation @ 10% p.a. under the reducing balance method. Prepare Furniture account, for
the years 2002, 2003, 2004 assuming that accounting year of the firm is calendar year and depreciation
account for the year ending 31 – 12 - 2003.

8. Saishree Ltd. Purchased a Machine worth Rs. 1,00,000 on 1st April, 2000. On 1st April 2001, the company
purchased additional machine for Rs. 20,000. On 1st Oct 2002, the company sold the machine purchased on
1st April, 2001 for Rs. 16,000. Company writes off depreciation at the rate of 10% p.a. on reducing balance
system. The Accounts being closed on 31st March every year. Show Machinery account and Depreciation
account for 3 years. i.e. 2000 – 01, 20010 – 02 & 2002 – 03.

9. On 1st July, 2000. Raj traders, Baroda, purchased a flat for its office for Rs. 10,00,000. On 1st April, 2001
adjacent flat purchased for Rs. 16,00,000. On 1st October, 2002 half of the total office premises were sold
 through a broker for Rs. 25,00,000, brokerage @ 2% of the selling price was paid. Depreciation is charged
on 31st March every year @ 10% p.a. under Reducing Balance Method. Prepare Premises account for three
years.

10. Wadhwa Trading company purchased furniture on 1-1-2004 for Rs. 1,50,000. On 1-7-2004 additional
furniture was purchased for Rs. 80,000. On 1-7-2005 furniture purchased on 1-1-2004 was sold for Rs.
1,00,000 & new furniture of Rs. 1,20,000 was purchased on the same date. Depreciation is charged at 10
% p.a. on Reducing Balance Method. Prepare Furniture account and Depreciation account for three years
ending 31st December, 2004, 2005, 2006.