DEPRECIATION – PART 2

When provision for Depreciation

Account is not maintained

When provision for depreciation

account is maintained
 When provision for Depreciation
Account is not maintained

Machinery account
Depreciation account
Balance sheet
 ILLUSTRATION
• R.Kanitkar purchased a machinery by cheque
for 100000/- on 1st Oct. 2013
• Another machine was purchased for 60000/-
by cheque on 1st April 2015 .
• Depreciation charged @ 10% p.a by straight
line method
• Accounts are closed each year on 31st march.
• Make relevant accounts
 MACHINERY ACCOUNTS
DATE PARTICULARS AMT DATE PARTICULARS AMT
2013 TO BANK A/C 100000 2014
OCT 1 MARCH 31 BY DEP. 5000
MARCH 31 BY BALANCE c/d 95000
100000 100000

2014 TO Balance b/d 95000 2015 BY DEP. 10000

APRIL 1 MARCH 31 BY BALANCE c/d 85000
MRACH 31
95000 95000

2015 TO Balance b/d 85000 2016

APRIL 1 TO Bank A/C 60000 MARCH 31 BY DEP I 10000
APRIL 1 MARCH 31 BY DEP II 6000
BY BALANCE c/d I 75000
BY BALANCE c/d II 54000
145000 145000
2017
April 1 TO BALANCE 129000
b/d
 DEPRECIATION ACCOUNT
DATE PARTICULARS AMT DATE PARTICULARS AMT

2014 TO MACHINERY A/C 5000 2014 BY P & L A/C 5000

MARCH 31 MARCH 31

2015 TO MACHINERY A/C 10000 2015 BY P & L A/C 10000

MARCH 31 MARCH 31

2016 TO MACHINERY A/C 16000 2016 BY P & L A/C 16000

MARCH 31 MARCH 31
 BALANCE SHEET
LIABILITIES AMOUNT ASSETS AMOUNT

As on 31st March 2014

Machinery 100000 95000
- Dep 5000

As on 31st March 2015 85000

Machinery 95000
- Dep 10000
129000
As on 31st March 2016
Machinery 145000
- Dep 16000
When provision for Depreciation
Account is maintained
• Machinery account
• Provision for depreciation
• Depreciation account
• Balance sheet
 MACHINERY ACCOUNTS
DATE PARTICULARS AMT DATE PARTICULARS AMT
2013 TO BANK A/C 100000 2014 100000
OCT 1 MARCH 31 BY BALANCE c/d

100000 100000

2014 TO Balance b/d 100000 2015 BY BALANCE c/d 100000

APRIL 1 MARCH 31
10000 10000

2015 TO Balance b/d 100000 2016

APRIL 1 TO Bank A/C 60000 MARCH 31 BY BALANCE c/d 160000
APRIL 1 MARCH 31

160000 160000
2016
April 1 TO BALANCE 160000
b/d
 DEPRECIATION
JOURNAL ENTRY TO PROV.FOR DEP
PROVISION FOR DEPRECIATION ACCOUNT

DATE PARTICULARS AMT DATE PARTICULARS AMT

2014 TO BALANCE C/D 5000 2014 BY DEP. 5000
MARCH 31 MARCH 31

2015 TO BALANCE C/D 15000 2014 APRIL BY BAL.B/D 5000

MARCH 31 2015 BY DEP. 10000
MARCH 31

2016 TO BALANCE C/D 31000 2015 APRIL BY BAL.B/D 15000

MARCH 31 2016 BY DEP 10000 16000
MARCH 31 + 6000
31000 31000
 DEPRECIATION
JOURNAL ENTRY TO PROV.FOR DEP

DEPRECIATION ACCOUNT

DATE PARTICULARS AMT DATE PARTICULARS AMT

2014 TO PROV .FOR DEP 5000 2014 BY P & L A/C 5000
MARCH 31 A/C MARCH 31

2015 TO PROV FOR DEP. A/C 10000 2015 BY P & L A/C 10000
MARCH 31 MARCH 31

2016 TO PROV FOR DEP A/C 16000 2016 BY P & L A/C 16000
MARCH 31 MARCH 31
 BALANCE SHEET
LIABILITIES AMOUNT ASSETS AMOUNT

As on 31st March 2014

Machinery 100000 95000
- Pro. For dep 5000

As on 31st March 2015 85000

Machinery 100000
- Prov for Dep 15000
129000
As on 31st March 2016
Machinery 160000
- Prov for Dep 31000
THANK YOU