Accounting for Depreciation

Accounting for Depreciation

Question 1:
A Ltd. purchased a machine on 1st July,2024 at a cost of ₹ 14, 00,000 and spent ₹ 1, 00,000 on its installation. The firm writes off depreciation at10% p.a.of the original cost every year. The books are closed on 31st March every year.
You are required to: Show the Machinery Account and Depreciation Account for the year 2024 and 2025.

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Question 2:
A Ltd. purchased on 1st April, 2024 a machinery for ₹ 2,91,000 and incurred ₹ 9000 for installation. On 1st October another machinery for ₹ 1,00,000 was purchased. On 1st October 2025 the machinery purchased on 01/04/2024 having become useless was sold for ₹ 1,93,000 and on that day a new machinery was purchased for ₹ 2,00,000.
Depreciation was provided on 31st March each year @ 10 percent p.a on written Down Value.
You are required to prepare machinery account.