DEPRECIATION

1. Vaishali Ltd. Purchased machine for Rs. 30000 on 1/1/05. The company closes the A/c on 31/12 every year depreciate machinery by 20% on WDV basis. Prepare machinery A/c, PFD A/c and show how the depreciation appears in final A/c. write machinery A/c for 3 years.

2. ABC co. provides you with the following information giving plant and machinery A/c. Date 01.01.01 01.01.01 01.07.02 01.07.02 01.10.03 01.10.03 01.10.03 Particulars Purchase of machinery Installation expenses Purchase of additional machinery Installation expenses st 1 machinery totally damaged due to flood and insurance co. admitted a claim for Purchased second hand machine Paid repair charges for the above machine
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Amount (in Rs.) 85000 15000 47000 3000 20000 60000 40000

Depreciation should be provided at 20% p.a. on RBM for 31 dec. every year and also prepare machinery account 01.02.03.

3. On 1 jan 2001, a machinery for Rs. 12,00,000 was purchased. On 1 july 2003 a part of machinery purchased on 1 jan 2001 for Rs. 80,000 was sold for Rs. 45,000 and on the same date a new machine at the cost of Rs. 1, 50,000 was purchased. The company has adopted 10% p.a. depreciation on original cost of machine. Prepare ledger A/c assuming that provision for depreciation is maintained and also prepare balance sheet under both option.

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4. Sony Ltd. Purchased on 1 jan 2000 a small plant for Rs.10,000 on 1 july in the same year additional plant was purchased costing Rs. st st st 5,000. On 1 july 2001 the plant purchased on 1 jan 2000 became obsolete and was sold for Rs. 4,000. On 1 july 2002 a fresh plant was st purchased for Rs. 12,000 and the plant purchased on 1 july 2000 was sold for Rs. 4000 on the same date. Provide depreciation @ 10% p.a. st by WDV method for every year ended 31 march. Prepare machinery A/c, PFD A/c, machinery disposal account and blance sheet of the last year.

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5. A company purchased a second hand machine on 1 jan 2000 in Rs. 3000 and spends Rs. 2000 for repair and Rs. 1000 for installation st st charges. On 1 july 2001 they purchased another machinery for Rs. 10,000 and 1 july 2002 they sold off first machinery for Rs. 25,000 and st bought another machinery for Rs. 25,000. On 1 july 2003 the second machine was sold for Rs.2000. Depreciate @15% p.a. by WDV method. Prepare machinery account and compute the fig. to the nearest rupee.

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6. On 1 july 2000 TATA Ltd. Purchased a machinery for Rs. 6,00,000. On 28 feb. 02 a part of machinery which was purchased on 1 july 2000 for Rs. 80,000 was sold for Rs. 30,000 and on the same date a fresh machinery was purchased for Rs. 1,50,040. Provide depreciation on WDV st method @ 20% p.a. and close book on 31 dec. prepare machinery A/c, PFD A/c and machinery disposal A/c.

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7. Kapoor Ltd. Purchased a plant on 01.01.01 for Rs. 2,00,000 and spend Rs. 10,000 for over hauling and Rs. 5,000 as installation charges. The plant was destroyed by fire on 31.07.04 and Rs. 60,000 was admitted as a claim by insurance company, depreciate @ 20% p.a. for every year st ended 31 dec. byWDV method. Prepare plant A/c , PFD A/c and plant disposal A/c.