Scribd
Upload
32 views1 page

Assignment - 4

This document contains an assignment for a financial accounting and analysis course with three questions. The first question asks the student to calculate the balance of a plant and machinery account over four years using straight-line depreciation. The second question asks the student to prepare plant and provision for depreciation accounts over three years using diminishing balance depreciation. The third question asks the student to prepare machinery and provision for depreciation accounts for one year ending March 31, 2013 using diminishing balance depreciation. Answers are provided for each question.

Uploaded by

pulkit gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
32 views1 page

Assignment - 4

This document contains an assignment for a financial accounting and analysis course with three questions. The first question asks the student to calculate the balance of a plant and machinery account over four years using straight-line depreciation. The second question asks the student to prepare plant and provision for depreciation accounts over three years using diminishing balance depreciation. The third question asks the student to prepare machinery and provision for depreciation accounts for one year ending March 31, 2013 using diminishing balance depreciation. Answers are provided for each question.

Uploaded by

pulkit gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

DELHI INSTITUTE OF ADVANCED STUDIES

Plot No. 6, Sector-25, Rohini, Delhi-110085


(Approved by AICTE & Affiliated with GGSIP University for B.Com(H), BBA, MBA & MBA (FM) Programmes)
(An ISO 9001:2015 Certified Institution)

Assignment - 4
BBA I Semester
Financial Accounting and Analysis

Date of Submission: 20th December, 2023

Q.1 On 1st April, 2015 a company bought Plant & Machinery costing Rs. 68,000. It is
estimated that its working life is 10 years, at the end of which it will fetch Rs. 8,000. Additions
are made on 1st April, 2016 to the value of Rs. 40,000 (residual value Rs. 4,000). More additions
are made on Oct. 1, 2017 to the value of Rs. 9,800 (Break up value Rs. 800). The working life of
both the additional Plant & Machinery is 20 years. Show the Plant & Machinery A/C for the first
four years, if depreciation is written off according to straight line method. The accounts are
closed on 31st March every year.

(Ans: Balance on March 31, 2016 – Rs. 62,000, Balance on 31st March 2017 – Rs. 94,200,
Balance on 31st March 2018 – Rs. 95,975, Balance on 31st March 2019 – Rs. 87,725)

Q.2 On 1st August, 2010, Hindustan Toys Ltd. purchased a plant for Rs. 12,00,000. The firm
writes off depreciation at 10% p.a. on the diminishing balance and the books are closed on 31st
March each year. On 1st July, 2012, a part of this plant of which the original cost was Rs.
1,80,000 was sold for Rs. 1,00,000 and on the same date a new plant was purchased for Rs.
4,00,000. Show the Plant Account and Provision for Depreciation Account for three years ending
31st March, 2013.

(Ans: Loss on sale of plant – Rs. 47,420, Balance of 2nd part of the plant at the end – Rs.
10,20,000, Balance of provision for depreciation A/C at the end – Rs. 2,78,880)

Q.3 Books of Mumbai Chemicals Ltd. showed the following balances on 1st April 2012:
Machinery A/c Rs. 10,00,000
Provision for Depreciation A/c Rs. 4,05,000
On 1st April, 2012, a machine which had a cost of Rs. 2,00,000 on 1st October, 2009 was sold
for Rs. 80,000. The firm writes off depreciation @ 10% p.a. under the Reducing Balance Method
and its accounts are made up on 31st March each year. You are required to prepare the
Machinery A/c and Provision for Depreciation A/c for the year ending 31st March, 2013.

Ans: Balance in Machinery A/C–Rs. 8,00,000, in Provision for Depreciation A/C–Rs. 4,03,010)

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy