1. The document discusses different depreciation methods including straight line, diminishing balance, and fixed installment methods. It provides examples of machinery accounts showing the calculation of depreciation expense and accumulated depreciation over multiple years for different companies and assets. 2. Multiple problems are presented involving the purchase and sale of machinery, with depreciation calculated annually at rates such as 10% or 15% on the original cost or diminishing balances. The accounts show the decreasing value of the assets over time. 3. Solutions to the problems would include machinery accounts displaying the cost of the assets, annual depreciation expense, accumulated depreciation, and eventual sale of the assets.

1. DEPRECIATION
METHODS

6. 1). Kumaran Brothers purchased a Machinery on 1.1.2012 for
Rs.5,00,000. On 1.1.2014 the machinery was sold for
Rs.4,00,000. The firm charges depreciation at the rate of 15%
per annum on Straight Line Method. The books are closed
on 31 March every year. Prepare Machinery account and
Depreciation account.

7. 2).On 1st January 2012, X Ltd. Purchased a second-hand
machine for Rs.58,000 and spent Rs.2,000 on its erection. On
1st July 2014, this machine was sold for Rs.28,600.
Prepare the machinery account of the first 3 years according to
the Straight line method taking the rate of depreciation at
10% p.a.

8. 2020:-
Q).M/s Sairam Industries Ltd., purchased a plant on 1 April, 2010 for
Rs.4,50,000 and incurred installation charges of Rs.50,000. On 30
September,2010 it purchased second hand plant for 1,00,000. On 1st
October,2012 it sold the 1 plant purchased on 1 April,2010 for
Rs.3,65,000. On 30th September,2013 it sold the second plant purchased
on 30th September, 2010 for Rs.75,000 and purchased another plant for
Rs.1,50,000. Depreciation was provided at the rate of 10% on original
cost on 31 March each year. Show the plant A/c for the period 2010-11
to 2013-14.

14. 1). Rama Ltd. Company purchase a machinery cost in
Rs.1,00,000 On 1-1-15.The Depreciation is provided @10%
p.a. The Books are Closed 31-Dec Every Year prepare
Machinery A/c For First 3 years
a). Fixed Installment Method
b). Diminishing Balance method

15. 2).Mr.Vamsi Purchased a Machinery on 1st Oct 2008 for
Rs.3,00,000 Depreciation is Written of @10% Under
Diminishing Balance method on 31st December 2010 Sold the
machinery for Rs.2,30,000. All the books are closed on 31st
December Every Year.

16. ANNUITY METHOD