contestada

10. The following are the particulars relating to the machine account. Purchase Date of purchase Depreciation applied Salvage value Scrapped Accounts closed on 5 machines at Rs. 10,000 each. January 1, 2017. Straight line at 20% per annum. Rs. 2,000 each. One machine realizing Rs. 6,000 on the last date of December, 2019. The last date of December every year. Required: Machinery account for 2019.​

Respuesta :

To prepare the Machinery account for the year 2019, we'll list the transactions related to machinery for that year and calculate the depreciation and any gains or losses from the sale of machinery. Then, we'll update the Machinery account accordingly.

Here's the Machinery account for the year 2019:

```
Machinery Account
Date Particulars Debit Credit
---------------------------------------------------------
Jan 1 To Purchase 50,000
Dec 31 By Depreciation 8,000
Dec 31 By Sale of Machine 6,000
Dec 31 By Salvage Value 2,000
Dec 31 To Profit and Loss A/c 2,000
---------------------------------------------------------
50,000 16,000
```

Explanation:

1. **To Purchase (Jan 1, 2017)**: We debit the Machinery account with the total purchase cost of 5 machines, which is Rs. 50,000.

2. **By Depreciation (Dec 31, 2019)**: We credit the Machinery account with the depreciation expense for the year 2019, which is Rs. 8,000 (20% of Rs. 40,000, the net book value of the machinery at the beginning of the year).

3. **By Sale of Machine (Dec 31, 2019)**: We credit the Machinery account with the proceeds from the sale of one machine, which is Rs. 6,000.

4. **By Salvage Value (Dec 31, 2019)**: We credit the Machinery account with the salvage value of one machine, which is Rs. 2,000.

5. **To Profit and Loss A/c (Dec 31, 2019)**: We debit the Machinery account with any loss incurred from the sale of machinery, which is the difference between the book value and the sale proceeds. In this case, there is no loss, so it's just for closing the account.

This Machinery account reflects all the relevant transactions for the year 2019.