Question

From the following transactions of a concern, prepare the Machinery Account for the year ended 31st March, 2018:
1st April, 2017 : Purchased a second-hand machinery for Rs. 40,000
1st April, 2017 : Spent Rs. 10,000 on repairs for making it serviceable.
30th September, 2017 : Purchased additional new machinery for Rs. 20,000.
31st December, 2017 : Repairs and renewals of machinery Rs. 3,000.
31st March, 2018 : Depreciate the machinery at 10% p.a.

Answer 1

Note :

Repair and renewal made on December 31, 2017 will not be recorded in Machinery Account because, this repair was after putting the Machinery in to use.