Dr. Date 2015 Particulars April 1 To Bank A/C 2016 AprilTo Balance bd In the Books of SIDDHI Ltd., Ratnagiri Machinery Account Cr. J.E. Amt (3) Date Particulars J.E. Amt (3) 2016 2,00.000 Mar 31 By Depreciation Ac 20,000 Mar 31 By Balance cd 1,80,000 2.00.000 2,00,000 2017 1,80,000 Mar 31 By Depreciation A/C 20,000 Mar 31 By Balance cd 1.60,000 1,80,000 1.80,000 2018 160.000 Mar 31 By Depreciation Ale 20,000 Mar 31 By Balance cd 1.40,000 1,60,000 1.60,000 2017 April to Balance b'd 2018 April 1 To Balance ba 1.40,000 Cr. Amt (3) Dr. Date Particulars 2016 Mar 31 To Machinery Ac 20,000 20,000 2017 Mar 31 To Machinery Alc Depreciation Account J.E. Amt) Date Particulars J.F. 2016 20,000 Mar 31 By Profit & Loss Ac 20,000 2017 20,000 Mar. 31 By Profit & Loss A/C 20,000 2018 20,000 Mar. 31 By Profit & Loss AC 20.000 20,000 20,000 2018 Mar 31 To Machinery Alc 20.000 20,000 59 Illustration 2 On 1st April 2016 Ms Punawala & Co .atur Purchased Equipments of 50.000 against cheque They decided to follow Fixed Instalment Method of depreciation The life of the Equipments is estimated as 8 years and scrap-value of the Equipments at the end of its life is estimated as 72.000 On ist Jan 2019 entire Equipment is sold for 35.000. The firm closes its Books of Accounts on 31st March, cach year Prepare Equipments Ac Pass Journal entries for third year and also calculate depreciation