2447298343 - REVISIONARY TEST PAPER JUNE 2011 GROUP I THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA 12 SUDDER STREET KOLKATA-700 016 INTERMEDIATE

2447298343 - REVISIONARY TEST PAPER JUNE 2011 GROUP I THE...

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REVISIONARY TEST PAPER THE INSTITUTE OF COST AND WORKS ACCOUNTANTS OF INDIA 12, SUDDER STREET, KOLKATA-700 016 GROUP I JUNE 2011
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INTERMEDIATE EXAMINATION (REVISED SYLLABUS - 2008) GROUP - I Paper-5 : FINANCIAL ACCOUNTING Q. 1.M/s Suba Chemicals has imported a machine on 1st July 2007 for $ 6,000, paid customs duty andfreight Rs. 52,000 and incurred rection charges Rs. 20,000. Another local machinery costingRs.1,00,000 was purchased on January 1, 2008. On 1st July 2009, a portion of the imported machinery(value one-third) got out of order and was sold for Rs. 34,800. Another machinery was purchased toreplace the same for Rs. 50,000. Depreciation is to be calculated at 20% p.a. on straight-line method.Prepare the Machinery Account and Machinery Disposal Account for 2007, 2008 and 2009. Exchange rate is Rs. 38 per $. Answer 1. Books of M/s. Suba Chemicals Dr. MACHINERY ACCOUNT Cr. Date Particulars Amount Date Particulars Amount 2007 Rs. 2007 Rs. July 1 To Bank — purchase 2,28,000 Dec. 31 By Depreciation (6000×Rs. 38) —for 6 months 30,000 To Bank —Duty etc. 52,000 (Rs. 3,00,000 To Bank — Erection charges 20,000 × 20/100 × 1/2 By Balance c/d 2,70,000 3,00,000 3,00,000 2008 2008 Jan. 1 To Balance b/d 2,70,000 Dec. 31 By Drpreciation To Bank—purchase 1,00,000 (i) 3,00,000 × 20/100 60,000 (ii) 1,00,000 × 20/100 20,000 By Balance c/d 2,90,000 3,70,000 3,70,000 2009 2009 Jan. 1 To Balance b/d 2,90,000 July 1 By Machinery Disposal A/c 70,000 To Bank—purchase 1,00,000 Dec. 31 By Decpreciation : (i) 2,00,000 × 20/100 40,000 (ii) 1,00,000 × 20/100 20,000 (iii) 50,000 × 20/100×½ 5,000 By Balance c/d 2,05,000 3,40,000 3,40,000 2010 Jan. 1 To Balance b/d 2,05,000 1
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