On 1st of April 2000, Sonu Ltd. Purchased a machinery for 3,90,000 on which they spent 10,000 for installation charges. The company charges depreciation @10% per year. On straight line method. Accounts are closed on 31st March every year. Show the machinery account for 3years
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On 1st of April 2000, Sonu Ltd. Purchased a machinery for 3,90,000 on which they spent 10,000 for installation charges. The company charges
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- Salman and Usman Bros. acquired a machine on July 1, 2008 at a cost of ₹ 70,000 and spent 5,000 on its installation. The firm writes off depreciation @ 10% on straight line method. The books are closed on December 31 every year. Show the machinery and depreciation account for three years.he ist machine for Rs.38,500 and on the same date purchased a new machinery for Rs.50,000. Depreciation is provided @ 20% p.a. on cost each year. Accounts are closed each year on 31" March. Show the Machinery account for three years. 0.5P Ltd. made a profit of Rs.5,00,000 after considering the following items: I. Preliminary expenses written off II. Depreciation on fixed assets III. Loss on sale of Machinery IV. Provision for doubtful debts Rs 5,000 50,000 20,000 10,000 7,500 V. Gain on Sale of Land The following is the position of current assets & current liabilities: Particulars 2017 (Rs.) 52,000 15,000 2,000 40,000 19,000 34,000 2018 (Rs.) 78,000 12,000 3,000 51,000 12,000 20,000 Debtors Bills Receivable Prepaid Expenses Creditors Bills Payable Expenses Payable Calculate Cash flow from Operating activities. Q.6 Calculate the current ratio and quick ratio from the following particulars and also give your comments about the sanme: Rs. 4,000 CashPackages Limited bought a machinery for Rs. 975,000 from Pakistan Ltd. Its residual value is expected to 71,000 at the end of useful life of 8 years. Accounts are closed each year on 31ª December. Required: Calculate depreciation at the rate of 21.8 % for first three years by applying reducing balance method.
- On 31 March 20X9 a machine was sold which cost $20,000 on 1 May 20X5. The profit on disposal was $1,500.The depreciation policy is 20% pa straight line, with a full year being charged in year of acquisition and none inthe year of sale. The year end is 31 December.The sale proceeds were $________________.A machine depreciates by 12% each year. The original cost is 8,500. Make out aschedule showing the annual depreciation, the total depreciation and book value atthe end of each year for 6 years. (Declining Balance Method)Gene’s business bought a machine for £72,000 on 1 January 2000 and another one for £96,000 on 1st July 2000. Depreciation is charged at 10% per annum straight line and calculated on a monthly basis. What is the total depreciation charge for the two machines for the year ended 31 December 2000? A £6,000 B £8,400 C £12,000 D £16,800
- White Mountain Supply Company purchases warehouse shelving for $18,300. Shipping charges were $370, and assembly and setup amounted to $575. The shelves are expected to last for 8 years and have a scrap value of $700. Use the straight-line method of depreciation to answer the questions. (Round your answers to the nearest cent.) (0) What is the annual depreciation expense (in $) of the shelving? 24 (») What is the accumulated depreciation (in $) after the third year? (e) What is the book value of the shelving (in $) after the fifth year?Rifhan products use straight-line depreciation on all its depreciable assets. The accounts are adjusted and closed at the end of each calendar year. On January 4, 1999, the corporation purchased machinery for cash at a cost of Rs 90,000. Its useful life was estimated to be 10 years with a residual value of Rs 22,000. Depreciation for partial years is recorded to the nearest full month. In 2001, after almost 4 years of experience with the equipment, management decided that the estimated life of the equipment should be revised from 10 years to 7 years. No change was made in the estimate of residual value. The revised estimate of useful life was decided on prior to recording to depreciation for the period ended December 31, 2001. Instructions: Prepare journal entries in chronological order for the above events, beginning with the purchase of the machinery on January 4, 1999. Show separately the depreciation for 1999, 2000, and 2001 and 2002The company bought a machine for $40, 000 in January year 1. The machine had an expected useful life of six years and an expected residual value of $10,000. The machine was depreciated on the straight line basis where a full year's charge is made in the year of purchase and none in the year of sale. In December year 4, the machine was sold for $ 15,000. The company has a policy in its internal accounts of combining the depreciation charge with the profit or loss on disposal of assets. Its year end is 31 December. What is the total amount of profit/loss charged to the statement of profit or loss over the life of the machine?
- Compu Ltd purchased an asset worth 25,000. Useful life=10 years Residual value=1,000 Accounts of the company was closed on 31st December every year. Compu Ltd follows straight line depreciation method annually. Find out rate of depreciation and provide journal entries for the first 2 years.A company purchases a machine with an expected useful life of 6 years for $9,000. After two years of use, management revised the expected useful life to 8 years. The machine is to be depreciated at 30% per annum on the reducing balance basis. A full year's depreciation is charged in the year of purchase, with none in the year of sale. During year 4, it is sold for $3,000. What is the profit or loss on disposal? A $1,000 profit B $87 loss C $1,410 profit D $840 profitZul Cleaning Company bought a new delivery truck for RM45,000. Additional fitting for the truck costs RM2,500. The truck is expected to have a useful life of 5 years, and is classified as a light-duty truck and can be depreciated by straight line method. At the end of life the truck, it will be sold for RM5,000. The company's tax is 24%. Q. Prepare schedule of depreciation of 5 years.