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j&t bought a mixer machine on june 1 2019 for 240,000. it is the policy of...

j&t bought a mixer machine on june 1 2019 for 240,000. it is the policy of the firm to depreciate its fixed assets for 10 years without salvage value. prepare adjusting entries
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Answer #1

1. Machine Account

Particulars Debit Credit
Machine Account 2,40,000

Cash/Bank Acount

(journal Entry for purchase of asset on 01.01.2019)

 2,40,000

Depreciation

 12,000

Machine

(Jornal Entry for Depreciation at the year end)

 12,000

Depreciation Calculation: 2,40,000/10 years = 24,000 for the year

As asset is used for only 6 months in an year(assuming year end at 31.dec), depreciation has to be calculated only for 6 months i.e., 24000/12*6 months = 12,000

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