Purchased machinery

This query is : Resolved

amruth (Querist)
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02 January 2014 Dear All

I your company we purchased a machinery cost of Rs.500000/- and transport charges is Rs.25000/- Labour charges Rs.5000/- instalation charges Rs.15000/- what is the machinery cost as per accounts and how the depreciation will be taken.

Question is
What is the Total amount of machinery have to taken
how depreciation to be taken
journal entries how it can be take

Thanking You

Amruth Kumar

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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02 January 2014 Total cost would be 5,00,000+25,000 + 5,000+15,000 =5,45,000

Depreciation on the basis on period held as asset till 31.3.2014 on rs 5,45,000

Journal entries:
1. for purchasing machine:
Machinery A/c...dr 5,45,000
To Cash/Bank A/c 5,45,000

2. Depreciation
Depreciaition on Machinery A/c...
To Machiney A/C

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