Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20 per annum reducing balance On July 1, 2012 the balances on the plant and machinery and accumulated depreciation accounts were Rs 712,000 and Rs 240,000 respectively Depreciation is recognised from the month of purchase During 2012 2013 it the auditors discovered that a repair which cost Rs 25,000 and incurred on October 1, 2010 had been capitalised incorrectly It was decided to correct this mistake while finalising the accounts for the year ended June 30, 2013 Only one machine was purchased during the year ended June 30, 2013 costing Rs 60,000 The machine was received in the factory on October 1, 2012 and was installed on January 1, 2013 Required Plant and machinery account and accumulated depreciation account for the year ended June 30, 2013 (Show all workings) Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20 per annum reducing balance On July 1, 2012 the balances on the plant and machinery and accumulated depreciation accounts were Rs 712,000 and Rs 240,000 respectively Depreciation is recognised from the month of purchase During 2012 2013 it the auditors discovered that a repair which cost Rs 25,000 and incurred on October 1, 2010 had been capitalised incorrectly It was decided to correct this mistake while finalising the accounts for the year ended June 30, 2013 Only one machine was purchased during the year ended June 30, 2013 costing Rs 60,000 The machine was received in the factory on October 1, 2012 and was installed on January 1, 2013 Required Plant and machinery account and accumulated depreciation account for the year ended June 30, 2013 (Show all workings)

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 21, 2024

Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20% per annum reducing balance. On July 1, 2012 the balances on

Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20% per annum reducing balance. On July 1, 2012 the balances on the plant and machinery and accumulated depreciation accounts were Rs. 712,000 and Rs. 240,000 respectively. Depreciation is recognised from the month of purchase. During 2012-2013 it the auditors discovered that a repair which cost Rs. 25,000 and incurred on October 1, 2010 had been capitalised incorrectly. It was decided to correct this mistake while finalising the accounts for the year ended June 30, 2013. Only one machine was purchased during the year ended June 30, 2013 costing Rs. 60,000. The machine was received in the factory on October 1, 2012 and was installed on January 1, 2013. Required Plant and machinery account and accumulated depreciation account for the year ended June 30, 2013. (Show all workings)
Sialkot Steel Works, a sole proprietorship, recognises depreciation on plant and machinery at 20% per annum reducing balance. On July 1, 2012 the balances on the plant and machinery and accumulated depreciation accounts were Rs. 712,000 and Rs. 240,000 respectively. Depreciation is recognised from the month of purchase. During 2012-2013 it the auditors discovered that a repair which cost Rs. 25,000 and incurred on October 1, 2010 had been capitalised incorrectly. It was decided to correct this mistake while finalising the accounts for the year ended June 30, 2013. Only one machine was purchased during the year ended June 30, 2013 costing Rs. 60,000. The machine was received in the factory on October 1, 2012 and was installed on January 1, 2013. Required Plant and machinery account and accumulated depreciation account for the year ended June 30, 2013. (Show all workings)