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  • Depreciation: (Part - 1)

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    The document discusses depreciation of machinery for two companies, Offclasses Ltd. and Premier Educations Ltd. Offclasses Ltd. purchased machinery costing Rs. 60,000 on April 1, 2014, Rs. 40,000 on October 1, 2014, and Rs. 30,000 on July 1, 2015. It calculates depreciation on a straight-line basis at 10% annually. Premier Educations Ltd. purchased machinery costing Rs. 50,000 on July 1, 2015 and Rs. 10,000 on September 1, 2016, calculating depreciation at 15% annually on a straight-line basis. The document provides the machinery account balances for both companies for the given periods.

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    Depreciation

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    Depreciation

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    The document discusses depreciation of machinery for two companies, Offclasses Ltd. and Premier Educations Ltd. Offclasses Ltd. purchased machinery costing Rs. 60,000 on April 1, 2014, Rs. 40,000 on October 1, 2014, and Rs. 30,000 on July 1, 2015. It calculates depreciation on a straight-line basis at 10% annually. Premier Educations Ltd. purchased machinery costing Rs. 50,000 on July 1, 2015 and Rs. 10,000 on September 1, 2016, calculating depreciation at 15% annually on a straight-line basis. The document provides the machinery account balances for both companies for the given periods.

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    4 views1 page

    Depreciation: (Part - 1)

    Uploaded by

    Vinit
    The document discusses depreciation of machinery for two companies, Offclasses Ltd. and Premier Educations Ltd. Offclasses Ltd. purchased machinery costing Rs. 60,000 on April 1, 2014, Rs. 40,000 on October 1, 2014, and Rs. 30,000 on July 1, 2015. It calculates depreciation on a straight-line basis at 10% annually. Premier Educations Ltd. purchased machinery costing Rs. 50,000 on July 1, 2015 and Rs. 10,000 on September 1, 2016, calculating depreciation at 15% annually on a straight-line basis. The document provides the machinery account balances for both companies for the given periods.

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    of 1

    Accountancy

    DEPRECIATION
    (Part -1)

    1. Offclasses Ltd. purchased on 1st April, 2014 a Machinery costing Rs.60,000. It purchased
    further machinery on 1st October, 2014 costing Rs.40,000 and on 1st July, 2015 costing
    Rs.30,000.
    Show how machinery account would appear in the books for the year 2014, 2015 and
    2016. It being given that machinery was depreciated by straight line method at 10%
    p.a. The company closes the books of accounts on 31st December every year.
    [Balances of machinery on 31st Dec 2016: M1 – Rs. 43,500; M2 – Rs. 31,000; M3 – Rs. 25,500]

    2. Premier Educations Ltd. purchased a machinery for Rs.50,000 on 1st July, 2015. Another
    machinery costing Rs. 10,000 was purchased on 1st September, 2016. The company
    charges depreciation at the rate of 15% p.a. on straight line method. Accounting are
    closed on 31st March every year.
    Prepare the machinery account for 3 years.
    [Balances of machinery on 31st March 2018: M1 – Rs. 29,375; M2 – Rs. 7,625]

    EMAIL: OFFCLASSES@GMAIL.COM BY - SHRINIVAS BHATT 1

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