24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12.00,000. On Oct 1, 2017, a part of the machinery purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of k providing 10% p.a. depreciation on the original cost of the machinery. Show the necessary ledger accounts assuming that a. "Provision for Depreciation Account' is not maintained b. 'Provision for Depreciation Account' is maintained

24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12.00,000. On Oct 1, 2017, a part of the machinery purchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at a cost of Rs.1,58,000 was purchased and installed on the same date. The company has adopted the method of k providing 10% p.a. depreciation on the original cost of the machinery. Show the necessary ledger accounts assuming that a. "Provision for Depreciation Account' is not maintained b. 'Provision for Depreciation Account' is maintained

Name: Show the Machinery Account for the year ended March 31, 2018.24. On A
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Description: Show the Machinery Account for the year ended March 31, 2018.24. On April 1, 2015, X Ltd. purchased a machinery for Rs.12,00,000. On Oct 1, 2017, a part of the machinerypurchased on April 1, 2015 for Rs. 80,000 was sold for Rs. 45,000 and a new mach

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 8P

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The following information relates to a company which prepares financial statements to 31st December each year: (a) On 1st January 2017, the company acquired new plant costing Ghs10million. This plant will require a complete overhaul after five years of use, at an estimated cost of Ghs1million. Accordingly, the company wishes to make a provision of Ghs200,000 for plant overhaul costs in its financial statement for the year to 31st December 2017 and then to increase this provision by Ghs200,000 every year for the next four years. This will have the effect of spreading the overhaul costs yearly over the years 2017 to 2021. (b) On 31st December 2017, the company moved from leased premises into new freehold premises. The lease on the old premises will continue for three more years at an annual cost of Ghs100,000. The lease cannot be cancelled and the premises cannot be sublet or used for any other purpose. The company wishes to make a provision of Ghs300,000 in its financial statements for…