8. 2077 Q.No. 13a XYZ Company
estimated life of machine is 10 years. Prepare machinery account for first three years
straight line method and the accounts
are closed on 31st Dec.
Ans: Balance b/d Rs. 35
9. A company purchased a machinery for Rs. 120,000 on 1st January 2020. Its usefu
estimated was 5 years at the end of which
the scrap value was estimated to be Rs. 20,000
the end of 2022, the machine was sold
for Rs. 45,000. Depreciation is charged under on
cost method and the accounting year is calendar year.
Required: Machinery account for three years.
Ans: Loss on sales Rs.
5
10. A company purchased a machine for Rs. 50,000 on Jan 1, 2020. The expected working
the machinery was five years. The salvage
value of the machine is expected to be 10%
di
cost. The company has followed straight-line
deprecation policy. At the end of the 202
company sold the machinery at Rs. 25,000 and
purchased another machine for Rs. 75,000
the same date.
Required: Machinery account for the three years ending 31st Dec. 2022
11. Consider the following information
Ans: Gain on sale Rs. 2,000; Balance c/d Rs. 75
Date
1.1.2020
1.7.2022
31.12.2022
→ Transaction
→ Purchased machinery for Rs. 50,000-
→Sold the machinery for Rs. 40,000 which was purchased on 2020.
→Purchased new machinery for Rs. 50,000
Assume that the rate of depreciation is @ 10% on straight line method and accounts are d
​