The journal entry records a debit to the depreciation account and credit to the fixed asset account for Rs. 1,000, representing the amount of depreciation expense for the period. The document also contains calculations for depreciation under straight line and written down value methods, noting that salvage value is assumed as 5% if not specified, and explaining the treatment for assets bought before or after certain dates within the fiscal year.

7. Journal Entry
Depreciation A/c Dr. 1,000
To Fixed Asset A/c 1,000
Date Particulars Amount Date Particulars Amount
To Fixed Asset 1,000
Date Particulars Amount Date Particulars Amount
By Depreciation 1,000
Depreciation A/c
Fixed Asset A/c

9. Depreciation under SLM = Cost – Salvage / Useful life
Note: If salvage is not specified – taken as 5%.
Annual Depreciation = 1,00,000 * 10% = 10,000
Since, the machine was bought on 1st july – Apply Pro-rata
Therefore, Depreciation = 10,000 * 9/12 = 7,500

10. Rate under WDV = 1 – n/`Salvage/Cost
Note: If salvage is not specified – taken as 5%.
Annual Depreciation = 1,00,000 * 10% = 10,000
Since, the machine was bought on 1st july – Apply Pro-rata
Full depreciation (100%) of the depreciable amount is
taken into accounts as the machine was bought before 30th
September.
WDV