Prepared By:
Prince Ali
vuhazara.blogspot.com
Assignment # 2
Required:
1. Prepare the Fixed Asset Schedule regarding machinery showing the columns
of Years, Cost, Depreciation charges, Accumulated depreciation and Written
down value for five years using the following methods separately:
a) Straight line method
b) Diminishing balance method
2. Calculate the profit or loss on the disposal of machinery under:
a) Straight line method
b) Diminishing balance method
Answer:
a) Straight line method
Year | Depreciation (Rs.) | Accumulated Depreciation (Rs.) | Written down value (Rs.) |
Depreciable Cost | -- | -- | Rs. 2,450000 |
31st Dec 2011 | 245,000 | 245,000 | 2205000 |
31st Dec 2012 | 245,000 | 490,000 | 1960000 |
31st Dec 2013 | 245,000 | 735000 | 1715000 |
31st Dec 2014 | 245,000 | 980000 | 1470000 |
31st Dec 2015 | 245,000 | 1225000 | 1225000 |
b) Diminishing Balance Method
Year | Depreciation (Rs.) | Accumulated Depreciation (Rs.) | Written Down Value (Rs.) |
Depreciable cost | -- | -- | Rs. 2,450000 |
31st Dec 2011 | 245000 | 245000 | 2205000 |
31St Dec 2012 | 220500 | 465500 | 1984500 |
31St Dec 2013 | 198450 | 663950 | 1786050 |
31st Dec 2014 | 178605 | 842555 | 1607445 |
31st Dec 2015 | 160745 | 1003300 | 1446700 |
c) Profit Under Straight Line Method
Add /Less | Particulars | Rs. Amount |
Dispose of Machine at Rs. | 1280000 | |
Less | Written Down Value | 1225000 |
Profit Under Straight Line Method | 55000 |
d) Profit Under Diminishing Balance Method
Add /Less | Particulars | Rs. Amount |
Dispose of Machine at Rs | 1280000 | |
Less | Written Down Value | 1446700 |
Loss under Diminishing Balance Method | 166700 |
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