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#12
Wednesday, January 23, 2013
 haadiya Junior Member Join Date: Aug 2012 Posts: 2 Thanks: 6 Thanked 1 Time in 1 Post

Quote:
 Originally Posted by Rohail Khan Journal entries Dr Cr Apr 1: Off: equipments 1000000 Dr Cash 1000000 Cr Machinery 50000 Dr Cash 50000 Cr Jul 15 Repairs exp:5000 Dr Cash 5000 Cr Sept 30 Cash 82000 Dr Acc: Dep 20000 Dr Machinery 100000 Cr Profit(I/S) 2000 Cr Dec 31 Machinery (new) 85000 Dr Acc Dep: (working 1)15000 Dr Loss in trade in (working 2) 3000 Dr Machinery(old) 50000 Cr Cash(working 3) 53000 Cr Computation Land Rs. 1,000,000(a) Office equipment(working 4) 6,000,000 Less: accumulated depreciation(working 5) 400,000 = 5,600,000(b) Machinery(w6) 585,000 Less: accumulated depreciation(w7) 145,000 = 440,000(c) Total non current asset(a+b+c) 7,040,000 Workings: W1 Acc: Dep @ 2005 add dep for year 2006 10000+5000=15000 W2 Old machinery less Acc: dep(w1)=net book value less trade in allowance = loss in trade 50000-15000=35000-32000=3000 W3 New machinery price less trade in allowance = cash paid 85000 – 32000 = 53000 W4 Old equipments + new equipments = office equipments 5000000+1000000=6000000 W5 Depreciate at straight line basis means divide equipments with their life So 6000000/40 years= 150000 is depreciation charges for the year 2006 Means The accumulated depreciation is 250000 till 2005 150000 of 2006 400000 is total acc: dep till 2006. W6 old machinery 600000(a) add: machine purchase on 1 April 50000(b) less: machine sold on 30 September 100000(c) less: machine sold on 31 December 50000(d) add machine purchase on 31 December 85000(e) total machinery (a+b-c-d+e) 585000 W7 Acc: dep for machine @ 2005 120000(a) Less dep of asset sold on September 20000(b) Less dep of asset sold on December 10000(c) Acc: dep @ 2005 after sold assets(a-b-c) 90000(d) Add: dep for the year 2006 (w8) 55000(e) Total Acc: dep till 2006 (d+e) 145000 W8 old machinery 600000(a) add: machine purchase on 1 April 50000(b) less: machine sold on 30 September 100000(c) less: machine sold on 31 December 50000(d) available for dep of 2006 are (a+b-c-d) 500000 nw 500000/10years so 50000 plus 5000(w1) =55000 seniors check please..
in sep 30 entry i think accumulated depreciation will be 27500(20000 upto 31 dec 2005+7500 current year 9 month depriciation)
plz members check this question