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