Hridaan’s Edumax

S1 - 18, Gate 3, Dosti Shoppe

Imperia, Manpada Thane

Depreciation
CLASS 11 - ACCOUNTANCY

Time Allowed : 1 mins Maximum Marks : 395

Section A

1 Book value of machine [3]

as on 31st March, 2013
is Rs.2,91,600. This
machine was
purchased on 1st April,
2010. Depreciation is
charged at 10% on
written down value
method. What is the
original cost of
machine?
2 Explain basic factors [3]
affecting the amount of
depreciation.
3 Distinguish between [3]
the Straight Line
Method and Written
Down Value Method of
providing
Depreciation.
4 Give two points of [3]
distinction between
Original Cost Method
and Written Down
Value Method of
providing depreciation.
5 How does the matching [3]
principle apply to
depreciation?
6 Give two merits of [3]
providing depreciation
 by the Written Down
Value Method.
7 Explain briefly your [3]
understanding of
assets disposal
account.
8 A machine is [3]
purchased for ₹
1,60,000 and it is
estimated that after its
estimated useful life of
4 years its scrap value
would be ₹ 10,000. It is
decided to depreciate
the machine by the
Diminishing Balance
Method. Find out the
percent rate of
Depreciation per
annum.
9 X bought a machine for [3]
₹ 25,000 on which he
spent ₹ 5,000 for
carriage and freight, ₹
1,000 for brokerage of
the middleman, ₹
3,500 for installation
and ₹ 500 for an iron
pad. The machine is
depreciated @ 10 per
cent every year on
written down value
basis. After three years,
the machine was sold
to Y for ₹ 30,500 and ₹
500 was paid as
commission to the
broker through whom
the sale was affected.
Find out profit and loss
on sale of machine.
10 A firm purchased an [3]
old truck for₹ 2,00,000
on 1st April, 2016. It
 charged depreciation
@ 20% per annum
following the Written
Down Value Method.
The truck was sold on
1st October, 2017 for ₹
1,60,000. Prepare
Truck Account for the
years ending 31st
March, 2017 and 2018.
11 Although, written [3]
down value method is
based upon a more
realistic assumption, it
suffers from some
limitations. Give any
three such limitations.
12 What are the effects of [3]
depreciation on profit
and loss account and
the balance sheet?
13 State any three merits [3]
of written down value
method of
depreciation.
14 On July 1, 2016 [3]
Pushpak Ltd.
purchased a machinery
for₹ 5,70,000 and paid
₹ 30,000 for its
overhauling and
installation.
Depreciation is
provided @ 20% p.a.
on Original Cost
Method and the books
are closed on 31st
March every year. The
machine was sold on
31st January 2019 for a
sum of ₹ 1,60,000. You
are required to show
the Machinery Account
and Provision for
 Depreciation Account
for three years.
15 Although,straight line [3]
method is simple and
easy to apply, it suffers
from certain
limitations. Give any
three such limitations.
16 Green Ltd. purchased [4]
machinery on 1st May
2011 for Rs 60,000. On
1st July 2012, it
purchased another
machine for Rs 20,000.
On 31st March 2013, it
sold off the first
machine purchased in
2011 for Rs 38,500 and
on the same date
purchased new
machinery for Rs
50,000. Depreciation is
provided at 20% p.a.
on the original cost
each year. Accounts are
closed each year on
31st December. Show
the Machinery Account
for three years.
17 On 1st October, 2015, [4]
Meenal Sharma bought
a machine for₹ 25,000
on which he spent ₹
5,000 for carriage and
freight; ₹ 1,000 for
brokerage of the
middle - man, ₹ 4,000
for installation. The
machine is depreciated
@ 10% p.a. on written
down value basis. On
31st March, 2018 the
machine was sold to
Deepa for ₹ 30,500 and
 ₹ 500 was paid as
commission to broker
through whom the
sales was effected. Find
out the profit or loss on
sale of machine if
accounts are closed on
31st March, every year.
18 M/s. Singhania and [4]
Bros. purchased a plant
for₹ 5,00,000 on April
01, 2017, and spent ₹
50,000 for its
installation. The
salvage value of the
plant after its useful
life of 10 years is
estimated to be ₹
10,000. Record journal
entries for the year
2016 - 17 and draw up
Plant Account and
Depreciation Account
for the first three years
given that the
depreciation is charged
using straight - line
method if:

1. The books of
account close on
March 31 every
year; and

2. The firm
charges
depreciation to
the asset
account.

19 Adhikari Ltd purchased [4]

on 1st January, 2012 a
machine for
Rs.1,20,000. On 1st
July, 2012 he also
purchased another
 machine for
Rs.1,00,000 On 1st July,
2013 he sold the
machine purchased on
1st January, 2012 for
Rs.80,000It was
decided that
depreciation @ 10%
was to be written - off
every year under
diminishing balance
method. Assuming the
accounts were closed
on 31st December
every year, show the
machine account for
the years 2012 and
2013.
20 On 1 April 2012 Gupta [4]
Bros, purchased two
machines for Rs
1,50,000 each.
Depreciation at the
rate of 10% on the
original cost of the
machine was provided.
On 31st March 2014,
one machine was sold
for Rs 1,10,000. An
improved model with a
cost of Rs 1,60,000 was
purchased on the same
day. You are required
to show the Machinery
A/c & Machinery
disposal account for
the year ending 31st
March 2014.
21 On April 1,2011, X Ltd. [4]
Purchased Machinery
for Rs 1,00,000 with
CGST and SGST @ 6%
each. The accounting
year of the Company
ends on 31st Dec. every
 year. Depreciation @
10% p.a. on the initial
cost is charged to P & L
Account and credited
to a separate account
known as ’provision for
depreciation’ account.
On 1st July 2013, the
machine purchased on
1st April 2011 was sold
for Rs 60,000. You are
required to prepare a
machinery Account and
Provision for
Depreciation Account
up to 2013.
22 A limited company [4]
purchased on 1st
January, 2011 a plant
for Rs.38,000 and
spent Rs.2,000 for
carriage and
brokerage. On 1st
April, 2012 it
purchased additional
plant costing 1 20,000.
On 1st August, 2013
the plant purchased on
1st January, 2011 was
sold for Rs.25,000. On
the same date, the
plant purchased on 1st
April, 2012 was sold at
a profit of Rs.2,800.
Depreciation is
provided @ 10% per
annum on diminishing
balance method every
year. Accounts are
closed on 31st
December every year.
Show the plant account
for 3 years.
23 The following balances [4]
appear in the books of
 Sankalp on 01 - 01 -
2015.Machinery A/c
Rs. 8,00,000, Provision
for Depreciation a/c
Rs. 3,18,000. On 01 -
01 - 2015 they decided
to sell a machine for Rs.
34,500. This machine
was purchased for Rs.
1,20,000 on 01 - 01 -
2011. Show the
machinery A/c,
Provision for
Depreciation A/c for
the year ended Dec 31,
2015, assuming that
depreciation was
charged at 10% p.a. on
Written Down value
method.
24 The following balances [4]
appear in the books of
Dinesh, as on 1st April,
2018:

On 1st July, 2018,

machinery which was
purchased on 1st April,
2015 for₹ 1,20,000
was sold for ₹ 50,000
plus CGST and SGST @
6% each and on the
same date another
machinery was
purchased for ₹ 32,000
plus CGST and SGST @
6% each. The firm
charges depreciation @
15% p.a. on Original
Cost Method and closes
its books on 31st
March every year.
 Prepare Machinery
Account and Provision
for Depreciation
Account for the year
2018 - 19. Also, pass
Journal entry for the
sale of machinery.

25 M/s. Nishit printing [4]

press bought a printing
machine for₹ 6,80,000
on April 01, 2015.
Depreciation was
provided on a straight -
line basis at the rate of
20% on the original
cost. On April 01, 2017,
a modification was
made in the machine to
increase its technical
reliability by ₹ 70,000.
On the same date, an
important component
of the machine was
replaced for₹ 20,000
due to excessive wear
and tear. Routine
maintenance expenses
during the year are ₹
5,000 Prepare
machinery account,
provision for
depreciation account.
Show the working
notes accordingly for
the year ending March
31, 2018.
26 Singhania Industries [4]
purchased a second -
hand machine for
Rs.56,00,000 on 1st
July 2010 and spent
Rs.24,00,000 on its
repair and installation
and Rs.5,00,000 for its
 carriage. On 1st
September, 2011 it
purchased another
machine for
Rs.2,50,00,000 and
spent Rs.10,00,000 on
its installation.
Depreciation in
provided on machinery
@ 10% per annum on
the original cost
method annually on
31st December.
Prepare machinery
account and
depreciation from the
year 2010 to 2012.
27 A Company had bought [4]
machinery for₹
2,00,000 including a
boiler for ₹ 20,000.
The Machinery Account
had been credited for
Depreciation on the
Reducing Instalment
System for the past
four years at the rate of
10%. During the fifth
year, i.e., the present
year, the boiler became
useless on account of
damage to some of its
vital parts and the
damaged boiler is sold
for ₹ 4,000. Write up
the Machinery Account.
28 Ram Bros, purchased a [4]
machine on 1st
October, 2016 at a cost
of₹ 1,50,000 and spent
₹ 10,000 on its
installation. The
realisable value or
scrap value at the end
of its estimated useful
 life of 10 years is
estimated at ₹ 10,000.
The books are closed
on 31st March every
year. Show the
Machinery Account and
Depreciation Account
for three years.
29 Parul Ltd purchased a [4]
machinery on 1st
January, 2010 for
Rs.11,00,000 and spent
Rs.1,00,000 on its
installation. On 1st
September, 2010 it
purchased another
machine for
Rs.7,40,000. On 1st
May, 2011 it purchased
another machine for
Rs.16,80,000
(including installation
expenses).Depreciation
was provided on
machinery @ 10% per
annum on original cost
method annually on
31st December.
Prepare machine
account and provision
for depreciation
account for the years
2010, 2011,2012 and
2013.
30 In Mr Hayat’s ledger, [4]
the written down value
of a machine as on 1st
April, 2013 is
Rs.70,000. The rate of
depreciation is 15%
per annum on the
written down value
method. The machine
is under an annual
repairs and
 maintenance contract
with Mr Swami who
charge Rs.1,250per
quarter.A new machine
was bought and the
cheque issued for
Rs.97,500 and the cash
paid Rs.2,500 for its
immediate erection
and subsequent use on
1st July, 2013. The
annual maintenance
contract of the new
machine bought was to
be sighed after the one
year guarantee period
was over. Show the
machinery account, as
it would appear in the
ledger for the year
ended 31st March,
2014.
31 Following balances [4]
appear in the books of
Goyal Brothers:

On 1st April, 2018, they

decided to sell a
machine for₹ 2,00,000
which was purchased
on 1st April, 2015 for ₹
3,00,000. Prepare
Machinery Account and
Provision for
Depreciation Account
for the year ended 31st
March, 2019 assuming
that the firm has been
charging depreciation
@ 10% p.a. on the
 Straight Line Method.

32 Explain the concept of [4]

depreciation. What is
the need for charging
depreciation and what
are the causes of
depreciation?
33 What are the causes of [4]
depreciation?
34 Birla Cotton Mills [4]
purchased machinery
on 1st August, 2015 for
₹ 90,000. On 1st
October, 2016 it
purchased another
machine for ₹ 40,000.
On 30th June, 2017 it
sold off the first
machine purchased in
2015 for ₹ 58,000 and
on the same date
purchased new
machinery for ₹
1,00,000. Depreciation
is provided at 20% p.a.
on the original cost
each year. Accounts are
closed each year on
31st March. Show the
Machinery Account for
three years. CGST and
SGST are charged @
6% each on the
purchase and sale of
Machinery.
35 Ramesh purchased a [4]
machinery by cheque
for Rs.50,000 on 1st
July, 2011. Another
machine was
purchased for
Rs.30,000 by cheque on
1st January, 2013.
Depreciation is charged
 at 10% per annum by
the straight line
method. Accounts are
closed each year on
31st December. You
are required to pass
the necessary journal
entries for the years
2011, 2012,
2013.When provision
for depreciation
account is not
maintained.
36 On 1 - 4 - 2010, a [6]
Company purchased
plant and machinery
for₹ 2,00,000. New
machinery for ₹
10,000 was purchased
on 1 - 1 - 2011 and for
₹ 20,000 on 1 - 10 -
2011. On 1 - 7 - 2012,
a machinery whose
book value had been ₹
30,000 on 1 - 4 - 2010
was sold for ₹ 16,000
and the entire amount
was credited to Plant
and Machinery
Account. Depreciation
had been charged at
10% per annum on
straight - line method.
Accounts are closed on
31st March every year.
Show the Plant and
Machinery Account
from 1 - 4 - 2010 to 31
- 3 - 2013.
37 A Company had bought [6]
machinery for
Rs.5,00,000 including a
boiler worth Rs.50,000.
The machinery account
had been credited for
 depreciation on the
reducing installment
system for the past 4
years @ 10%. During
the 5th year i.e., the
present year, the boiler
became useless on
account of damage to
some of its vital parts
and the damaged boiler
is sold for Rs.10,000.
Write up the
machinery account for
the first five years.
38 On 1st April, 2015, a [6]
limited company
purchased a Machine
for₹ 1,90,000 and
spent ₹ 10,000 on its
installation. At the date
of purchase, it was
estimated that the
scrap value of the
machine would be ₹
50,000 at the end of
sixth year. Give
Machine Account and
Depreciation A/c in the
books of the Company
for 4 years after
providing depreciation
by Fixed Instalment
Method. The books are
closed on 31st March
every year.
39 On 1st April, 2016, [6]
Hind Oil Ltd. purchased
a machinery for₹
8,00,000. On 1st
January, 2019, a part of
this machine
purchased on 1st April,
2016 for ₹ 1,00,000
was sold for ₹ 44,000
and on the same date, a
 new machine was
purchased for ₹
1,20,000. Depreciation
was provided @10%
p.a. on Original Cost of
the machinery and
accounts are closed on
31st March every year.
Show the Machinery
Account and Machinery
Disposal Account
assuming that:

1. Provision for
Depreciation
Accountis not
maintained, and

2. Provision for
Depreciation
Accountis
maintained.

40 A company whose [6]

accounting year is the
calendar year,
purchased on 1st April,
2010 machinery
costing Rs.30,000. It
purchased further
machinery on 1st
October, 2010 costing
Rs.20,000 and on 1st
July, 2011 costing
Rs.10,000.On 1st
January, 2012 one
third of the machinery
which was installed on
1st April, 2010 become
obsolete and was sold
for Rs.3,000. Show how
the machine account
would appear in the
books of the company,
it being given that
machinery was
 depreciated by fixed
installment at 10 % per
annum.
41 On 1st April, 2015, X [6]
Ltd. purchased a Plant
and Machinery for₹
43,000. It was
estimated that the
effective life of the
Plant and Machinery
will be 10 years and
after 10 years its scrap
value will be ₹ 3,000.
On 1st April, 2016, the
Company purchased
additional machine for
₹ 25,000, of which the
effective life will be 15
years and scrap value
₹ 2,500. On 1st
October, 2017, a new
machine was
purchased for ₹
12,000, of which the
scrap value will be ₹
2,000 and effective life
20 years. Show the
Plant and Machinery
A/c upto 31st March
2019, if depreciation is
provided on Straight
Line Method. The
accounts are closed on
31st March every year.
42 A company writes off [6]
depreciation on
straight - line basis on
machinery at 10%. On
31st March 2013, the
position was as
under:Cost of
purchases to date Rs
52,590 Depreciation
written off to date Rs
25,670 During 2013 -
 14 an addition of
Rs2,480 was made to
machinery. A machine
bought in 2009 - 10 for
Rs2,800 was sold for
Rs 800 during the year.
You are required to
show the Machinery
Account for the year
2013 - 14. (Show your
workings fully)
43 On 1st January, 2011 Z [6]
Ltd purchased
machinery
forRs.1,20,000 and on
30th June, 2012 it
acquired additional
machinery at a cost of
Rs.20,000. On 31st
March, 2013, one of the
original machine
(purchased on 1st
January, 2011) which
had cost of Rs.5,000
was found to have
become obsolete and
was sold as scrap for
Rs.500. It was replaced
on that date by a new
machine costing
Rs.8,000. Depreciation
is to be charged@ 15%
per annum on the basis
written down value
method. Accounts are
closed on 31st
December, each year.
Show the machinery
account for the first 3
years.
44 On 1st January 2009, a [6]
firm purchased
machinery worth Rs
50,000. On 1st July
2011, it buys additional
 machinery worth Rs
10,000 and spends Rs
1,000 on its erection.
The accounts are
closed each year on
31st December.
Assuming that the
annual depreciation is
10 percent, show the
machinery account for
5 years under the
straight - line method.
45 A Limited has the [6]
following balances on
1st April 2017

The company charged

depreciation @ 10%
p.a. on Straight Line
Method. Accounts are
closed on 31st March
every year. On 1st
October, 2017, a part of
machinery purchased
on 1st July, 2014 for
Rs.40,000 was sold for
Rs.18,400, charging
CGST and SGST @ 6%
each and on the same
date a new plant was
purchased for
Rs.1,00,000 plus IGST
@ 12%.Prepare
’Machinery Account’
and ’Provision for
Depreciation Account
for the year ended 31st
March 2018.

46 Prominent Ltd [6]

purchased on 1st April,
2012 a plant for
Rs.5,00,000. On 1st
 October, 2012 an
additional plant was
purchased costing
Rs.2,50,000. On 1st
October, 2013 the plant
purchased on 1 st
April, 2012 having
become obsolete, was
sold for 2,00,000.
Depreciation is
provided @ 10% per
annum on the original
cost on 31st March,
every year. Show the
machinery, machinery
disposal and provision
for depreciation
accounts for the year,
2012 - 13 and 2013 -
14.
47 Dowra Bros purchased [6]
on 1st April, 2015 a
second - hand
machinery for₹ 36,000
and spent ₹ 4,000 on
its installation. On 1st
October in the same
year, another
machinery costing ₹
20,000 was purchased.
On 1st October, 2017,
machinery bought on
1st April, 2015 was
sold off for₹ 12,000
and a fresh machine
was purchased for ₹
64,000 on the same
date. Depreciation is
provided annually on
31st March @ 10% p.a.
on the Written Down
Value Method. Show
Machinery Account for
3 years ending 31st
March, 2018.
48 X Ltd. purchased on [6]
April 1, 2015 a second
hand plant for₹
4,00,000 and
immediately spent ₹
80,000 for its
overhauling and ₹
20,000 for its
installation. On Oct.
1,2018, the plant
became obsolete and
was sold for ₹
2,00,000. Depreciation
is provided at 10% p.a.
on original cost
method. Accounts are
closed each year on
31st March. Show the
necessary Ledger
Accounts assuming
that:

1. Provision for
Depreciation
Accountis not
maintained, and

2. Provision for
Depreciation
Accountis
maintained.

49 A company had bought [6]

Machinery for₹
1,00,000 including
therein a boiler worth
₹ 10,000. Depreciation
was charged on
Reducing Balance
Method at the rate of
10% p.a. for first five
years and Machinery
Account was credited
accordingly. During the
fifth current year, the
boiler became useless
 on account of damages
to some of its vital
parts. The damaged
boiler is sold for ₹
2,000. Prepare the
Machinery Account for
five years.
50 Determine the missing [6]
information in the
following accounts, if
depreciation is to be
charged @10% p.a. as
per Straight Line
Method: Machinery
Account

Provision for
Depreciation Account

Machinery Disposal
 Account

51 On April 1, 2012, Z Ltd. [6]

purchased a plant for₹
5,00,000. On 1st
October in the same
year, additional plant
costing ₹ 2,00,000 was
purchased. On 1st
October 2013, the plant
purchased on 1st April
2012, having become
obsolete was sold off
for ₹ 2,65,000. On 1st
July 2014, new plant
was purchased for ₹
8,00,000 and on the
same date plant
purchased on 1st
October 2012 was sold
for ₹ 1,70,000. The
firm provides
depreciation @ 10%
p.a. on original cost on
31st March every year.
You are required to
show (i) Plant Account,
(ii) Depreciation
Account, and (iii)
Provision for
Depreciation Account
for three accounting
years ending 31st
March, 2015.
52 On 1st October, 2009, [6]
Raj & Co. purchased
machinery worth₹
40,000. On 1st October,
2011, it buys additional
machinery worth ₹
10,000. On 30th
September, 2012, half
of the machinery
purchased on 1st Oct.,
2009, is sold for ₹
8,200. The company
writes off 10 percent
p.a. on the original cost.
The accounts are
closed every year on
31st March. Show the
Machinery Account for
four years.
53 On 1st April, 2015, [6]
machinery was
purchased for₹ 80,000.
On 1st April, 2016 new
machinery costing ₹
40,000 was purchased.
On 30th June, 2017,
machinery purchased
on 1st April, 2015 was
sold for ₹ 65,000 and
on 30th September,
2017 machinery
purchased on 1st April,
2016 was sold for ₹
26,750. On 1st October,
2017 another
machinery for ₹
50,000 was acquired.
On 1st October, 2018
new machinery costing
₹ 40,000 was
purchased.
Depreciation was
charged @ 10% p.a. on
the Diminishing
Balance Method.
 Prepare Machinery
Account for four years
ending on 31st March,
2019.
54 On 1st April, 2016, [6]
Green Ltd. purchased
machinery for₹
1,20,000 and on 30th
September 2017, it
acquired additional
machinery at a cost of
₹ 20,000. On 30th June,
2018, one of the
original machines
which had cost ₹ 5,000
was found to have
become obsolete and
was sold as scrap for ₹
500. It was replaced on
that date by a new
machine costing ₹
8,000. Depreciation is
to be provided @ 15%
p.a. on the Written
Down Value. Accounts
are closed on 31st
March every year.
Show Machinery
Account for the first
three years.
55 On 1st April, 2012, [6]
SonuLtd. purchased a
machinery for₹
3,90,000 on which they
spent ₹ 5,000 for
carriage, ₹ 2,000 for
the brokerage of the
middle - man, ₹ 2,500
for installation and ₹
500 for an iron pad. On
1st November, 2013,
they purchased
another machinery for
₹ 1,00,000 and
immediately spent ₹
 20,000 on its
overhauling. On 30th
Sept. 2014, the
machinery purchased
in 2012 was sold at a
loss of ₹ 1,27,800. The
company charges
depreciation @ 10%
p.a. on written down
value basis. Accounts
are closed on 31 st
March every year.
Prepare Machinery
Account upto 31st
March, 2015.
56 On 1st January, 2017, [6]
the Jaipur Golden
Transport Company
purchased a truck for₹
8,00,000. On 1st July,
2018, this truck was
involved in an accident
and was destroyed and
₹ 6,00,000 were
received by a cheque
from the Insurance
Company in a full
settlement on 1st
October, 2018. On 1st
July, 2018, another
truck was purchased
by the company for ₹
10,00,000 plus COST
and SGST @ 6% each.
The company charges
depreciation @ 20%
p.a. following the
Written Down Value
Method. Prepare Truck
Account and
Depreciation Account
for 2017 to 2019 when
books are closed on
31st March every year.
57 On 1st June, 2009, S [6]
 Ltd. purchased a plant
for₹ 9,00,000. On 1st
December 2011 a part
of the plant purchased
on 1st June, 2009 for ₹
1,50,000 was sold for ₹
60,000. On 1st January,
2012 a new plant was
purchased for ₹
3,00,000. Depreciation
is provided @ 10% p.a.
on Diminishing Balance
Method. The books are
closed on 31st March
each year. Prepare
Plant A/c and
Provision for
Depreciation A/c for
the relevant years.
58 An asset is purchased [6]
for Rs 1,10,000.
Depreciation is to be
provided annually
according to the
straight - line method.
The useful life of the
asset is 10 years and
the residual value is Rs
10,000. You are
required to find out the
amount of annual
depreciation and
prepare an asset
account for the first
three years.
59 On 1st July 2015, A Co. [6]
Ltd. Purchases second -
hand machinery for₹
20,000 and spends ₹
3,000 on
reconditioning and
installing it. On 1st
January 2016, the firm
purchases new
machinery worth ₹
 12,000. On June 30,
2017, the machinery
purchased on January
1, 2016 was sold for ₹
8,000 and on July 1,
2017, a fresh plant was
installed. Payment for
this plant was to be
made as follows:

Payments in 2018 and

2019 include interest
of₹ 1,000 and ₹ 500
respectively. The
company writes off 10
percent p.a. on the
original coat, the
accounts are closed
every year on 31st
March. Show the
Machinery Account for
the year ended 31st
March 2018.

60 On 1st April, 2015, Atul [6]

Glass Limited
purchased a Machine
for₹ 90,000 and spent
₹ 6,000 on its carriage
and ₹ 4,000 on its
erection. On the date of
purchase, it was
estimated that the
effective life of the
machine will be 10
years and after 10
years its scrap value
will be ₹ 20,000.
Prepare Machine A/c
and Depreciation A/c
for 4 years after
 providing depreciation
on Fixed Instalment
Method. Accounts are
closed on 31st March
every year.
61 ABC Ltd. purchased a [8]
plant on 1st April, 2017
for₹ 1,00,000. On 1st
October, 2017, an
additional plant was
purchased costing ₹
50,000 CGST and SGST
@ 6% each. On 1st
October, 2018 the plant
purchased on 1st April,
2017, having become
obsolete, was sold for
₹ 40,000, charging
CGST and SGST @ 6%
each. Depreciation is
provided @ 10% p.a.
on cost on 31st March
every year. Show the
Machinery, Machinery
Disposal and Provision
for Depreciation
Accounts for the years
ended 31st March,
2018 and 2019. Also,
show CGST and SGST
Accounts for the two
years.
62 On April 01, 2010, [8]
Bajrang Marbles
purchased a Machine
for₹ 1,80,000 and
spent ₹ 10,000 on its
carriage and ₹ 10,000
on its installation. It is
estimated that its
working life is 10 years
and after 10 years its
scrap value will be ₹
20,000.
 1. Prepare
Machine
account and
Depreciation
account for the
first four years
by providing
depreciation on
the straight -
line method.
Accounts are
closed on March
31st every year.

2. Prepare
Machine
account,
Depreciation
account, and
Provision for
depreciation
account (or
accumulated
depreciation
account) for the
first four years
by providing
depreciation
using straight -
line method
accounts are
closed on March
31 every year.

63 Sharma & Co. whose [8]

books are closed on
31st March, purchased
machinery for₹
1,50,000 on 1st April,
2016, Additional
machinery was
acquired for ₹ 50,000
on 1st October, 2016.
Certain machinery
which was purchased
for ₹ 50,000 on 1st
 October, 2016 was sold
for ₹ 40,000 on 30th
September, 2018.
Prepare the Machinery
Account and
Accumulated
Depreciation Account
for all the years up to
the year ended 31st
March, 2019.
Depreciation is charged
@ 10% p.a. on Straight
Line Method. Also,
show the Machinery
Disposal Account.
64 Following balance [8]
appear in the books of
Rama Bros:

On April2015 they
decided to sell a
machine for₹ 8,700.
This machine was
purchased for ₹ 16,000
in April2011. You are
required to prepare
Provision for
Depreciation A/c and
Machinery A/c on 31st
March2016 assuming
the firm has been
charging depreciation
at 10% p.a. on straight
line method.

65 A firm purchased on [8]

1st April 2015 certain
machinery for
Rs.5,82,000 and spent
Rs.18,000 on its
installation. On 1st
October2015,
additional machinery
 costing Rs.2,00,000
was purchased. On 1st
October2017, the
machinery purchased
on 1st April2015 was
auctioned for
Rs.2,86,000 plus CGST
and SGST @ 6% each
andnew machinery for
Rs.4,00,000, plus IGST
@ 12% was purchased
on the same date.
Depreciation was
provided annually on
31st March at the rate
of 10% on the Written
Down Value Method.
Prepare the Machinery
Account for the three
years ended 31st
March2018.
66 A company purchased [8]
a machine for
Rs.50,000 on 1st
October2015. Another
machinery
costingRs.10,000 was
purchased on 1st
December 2016. On
31st March 2018, the
machinery purchased
in 2015 was sold at a
loss of Rs.5,000. The
company charges
depreciation at the rate
of 15% p.a. on
Diminishing Balance
Method. Account
isclosed on 31st March
every year. Prepare
Machinery Account for
3 years.
67 On 1st April2015, [8]
Shivam Enterprise
purchased second -
 hand machinery for₹
52,000 and spent ₹
2,000 on cartage, ₹
3,000 on unloading, ₹
2,000 on installation
and ₹ 1,000 as the
brokerage of the
middle man. It was
estimated that the
machinery will have a
scrap value of ₹ 6,000
at the end of its useful
life, which is 10 years.
On 31st December
2015, repairs and
renewals amounted to
₹ 2,500 were paid. On
1st Octorber2017, this
machine was sold for ₹
30,600 and an amount
of ₹ 600 was paid as
commission to an
agent. Calculate the
amount of annual
depredation and rate of
depredation. Also
prepare the machinery
Account for first 3
years, assuming that
the firm follows a
financialyear for
accounting.
68 You are given following [8]
balances as on 1st April
2014:Plant &
Machinery A/c Rs
25,00,000 Provision for
Depreciation A/c Rs
5,80,000 Depreciation
is charged on the plant
at 20% p.a. by the
diminishing balance
method. A piece of
machinery purchased
on 1st April 2012 for
 Rs 5,00,000 was sold
on 1st October 2014
for Rs 3,00,000.
Prepare the Plant &
Machinery Account and
Provision for
Depreciation Account
for the Year ended 31st
March 2015. Also,
prepare Machinery
Disposal Account.
69 Following balance [8]
appear in the books of
M/s Amrit as on 1st
April2017:

On 1st April 2017, they

decided to dispose
offmachinery for₹
8,400, which was
purchased on 1st April
2013 for ₹ 16,000. You
are required to prepare
Machinery Account,
Provision for
Depreciation Account
and Machinery
Disposal A/c for the
year ended 31st
March2018.
Depreciation was
charged at 10% on
original cost method.

70 On 1st October 2014, [8]

Bansal Pvt. Ltd.
purchased machinery
for Rs 12,00,000. On
31st May, 2016, a part
of the machinery
purchased on 1st
October 2014 for Rs
1,60,000 was sold for
 Rs 60,000. On the same
date, fresh machinery
was purchased for Rs
3,00,000. Depreciation
is provided at 20% per
annum on the written
down value method
and the books are
closed on 31st March
each year. You are
required to prepare (a)
Machinery Account, (b)
Provision for
Depreciation Account,
and (c) Machinery
Disposal Account.
71 Following balance [8]
appear in the book of X
Ltd as on 1st April
2017:

The machinery is
depredated @ 10% p.a.
on the Fixed Instalment
method. The
accounting year being
April - March. On 1st
October 2017,
machinery which was
purchased on 1st July
2014 for₹ 1,00,000
was sold for ₹ 42,000
plus CGST and SGST
@6% each and on the
same date a new
machine was
purchased for ₹
2,00,000 paying IGST
@12%. Prepare
Machinery account and
provision for
depreciation account
 for the year ended 31st
March 2018.

72 On 1st October2011, X [8]

Ltd.
purchasedmachinery
for₹ 2,50,000. A part of
machinery which was
purchased for ₹ 20,000
on 1st October2011
became obsolete and
was disposed off on 1st
January, 2014 (having
a book value ₹ 17,100
on 1st April2013) for ₹
2,000. Depreciation is
charged @ 10%
annually on written
down value. Prepare
machinery disposal
account and also show
your workings. The
books being closed on
31st March of every
year.
73 On 1.1.2011 Machinery [8]
was purchased for Rs
80,000. On 1.7.2012
additions were made to
the account of Rs
40,000.On 31.3.2013
machinery purchased
on 1.7.2012 costing Rs
12,000 was sold for Rs
11,000 and on
30.6.2013 machinery
purchased on 1.1.2011,
costing Rs 32,000 was
sold for Rs 26,700. On
1.10.2013 additions
were made to the
amount of Rs 20,000.
Depreciation was
provided at 10% p.a.
on the Diminishing
 Balance Method. Show
the Machinery Account
for three years from
2011 to 2013 (Year
ended 31st December).
74 Astha Engineering [8]
Works purchased a
machine on 1st
July2015 for₹ 1,80,000
and spent ₹ 20,000 on
its installation. On 1st
April2016,it purchased
another machine for ₹
2,40,000. On 1st
October2017, the
machine purchased on
1st July2015 was sold
for ₹ 1,45,000. On 1st
January2018, another
machine was
purchased for ₹
4,00,000 plus IGST @
12%. Prepare the
machine account for
years ended 31st
March2016 to 2018
after charging
Depreciation @ 10%
p.a. by Diminishing
Balance Method.
Account isclosed on
31st March every year.
75 On 1st July, 2016, [8]
Sohan Lai & Sons
purchased a plant
costing₹ 60,000. The
additional plant was
purchased on 1st
January 2017 for ₹
40,000 and on 1st
October, 2017, for ₹
20,000, plus CGST and
SGST @ 6% each. On
1st April, 2018, one -
third of the plant
purchased on 1st July,
2016, was found to
have become obsolete
and was sold for ₹
6,000, charging CGST
and SGST @ 6% each.
Prepare the Plant
Account for the first
three years in the
books of Sohan Lai &
Sons. Depreciation is
charged @ 10% p.a. on
Straight Line Method.
Accounts are closed on
31st March each year.