Sameer & Company, Mumbai purchased a Machine worth ₹2,00,000 on 1st April 2016. On 1st July 2017, the company purchased an additional Machine for ₹40,000 | Show the Machinery Account and Depreciation Account for the first three years ending 31st March 2016-17, 2017-18 and 2018-19

5. Sameer & Company, Mumbai purchased a Machine worth ₹2,00,000 on 1st April 2016. On 1st July 2017, the company purchased an additional Machine for ₹40,000.


On 31st March 2019, the company old the Machine purchased on 1st July 2017 for ₹35,000. Company writes off depreciation at the rate of 10% on the original cost and the books of accounts are closed every year on 31st march.


Show the Machinery Account and Depreciation Account fo the first three years ending 31st March 2016-17, 2017-18 and 2018-19

Solution:
Machinery Account
Date Particulars JF Amount Date Particulars JF Amount 
2016    2017    
1st
April 		To Cash/Bank   2,00,000 31st
March 		By Depreciation  20,000 
        
    31st
March 		By Balance c/d  1,80,000 
   2,00,000    2,00,000 
2017    2018    
1st
April 		To Balance b/d  1,80,000 31st
March 		By Depreciation  23,000 
1st
July 		To Cash/Bank   40,000     
    31st
March 		By Balance c/d  1,97,000 
   2,20,000    2,20,000 
2018    2019    
1st
April 		To Balance b/d  1,97,000 31st
March 		By depreciation  24,000 
    31st
March 		By Cash/bank  35,000 
2019        
31st
March 		To profit on sale   2,000     
    31st
March 		By Balance c/d  1,40,000 
   1,99,000    1,99,000 
        
Depreciation Account
Date Particulars JF Amount Date Particulars JF Amount 
2017    2017    
31st
March 		To Depreciation   20,000 31st
March  		By Profit & Loss A/c  20,000 
        
   20,000    20,000 
2018    2018    
31st
March 		To depreciation   23,000 31st
march 		By Profit & Loss A/c  23,000 
        
   23,000    23,000 
        
2019    2019    
31st
march 		To Depreciation  24,000 31st
March 		By profit & Loss A/c  24,000 
        
   24,000    24,000 

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