M/s J.K. Company, Maroda, purchased machinery for Rs. 80,000 on 1st April 2002. Company purchased additional machinery for Rs. 36,000 on 1stOctober, 2003. The company charges depreciation @10% p.a. on the original cost. The financial year of the Company ends on 31st March every year. On 30th September, 2004 a part of the machinery, original cost of which was Rs. 30,000 on 1st April, 2002 was sold by the Company for Rs. 22,000. Prepare Machinery account for 3 years and give journal entries for the year 2002 – 2003. [MARCH 2009].
| DATE | PARTICULARS | AMOUNT | DATE | PARTICULARS | AMOUNT |
| 1.4.02 | To cash/bank a/c | 80000 | 31.3.03 | By depreciation a/c | 8000 |
| | | | 31.3.03 | By balance c/d | 72000 |
| | | 80000 | | | 80000 |
| 1.4.03 | To balance b/d | 72000 | 31.3.04 | By depreciation a/c | 9800 |
| 1.10.03 | To cash/ bank a/c | 36000 | 31.3.04 | By balance c/d | 98200 |
| | | 108000 | | | 108000 |
| 1.4.04 | To balance b/d | 98200 | 30.9.04 | By depreciation a/c | 1500 |
| | | | 30.9.04 | By cash/ bank a/c | 22000 |
| | | | 30.9.04 | By profit / loss a/c | 500 |
| | | | 31.3.05 | By depreciation a/c | 8600 |
| | | | 31.3.05 | By balance c/d | 65600 |
| | | 98200 | | | 98200 |
| 1.4.05 | To balance b/d | 65600 | | | |