Page 238 - DMGT104_FINANCIAL_ACCOUNTING

Financial Accounting Dec. 31 Depreciation Fund Investment A/c Dr. 25,471
To Cash Account 25,471
(Being investment of annual depreciation and the
interest)
Notes 2006
Dec. 31 Cash Account Dr. 2,940
To Depreciation Fund Account 2,940
(Being receipts of interest on the previous year’s
investments)
Dec. 31 Depreciation Account Dr. 23,549
To Depreciation Fund Account 23,549
(Being provision made for annual depreciation)
2006
Dec. 31 Cash Account Dr. 73,500
Depreciation Fund Account Dr. 11
To Depreciation Fund Investment A/c. 73,511
(Being sale of D.F. Investment and loss thereon
transferred to D.F. Account)
Dec. 31 Depreciation Fund Account Dr. 1,00,000
To Machinery Account 1,00,000
(Being the transfer of machinery to depreciation fund
account)
Dec. 31 Machinery Account Dr. 1,07,500
To Cash Account 1,07,500
(Being purchase of new machinery)

Ledger of XYZ Co. Ltd
Machinery Account

Date Particulars L.F. ( ) Date Particulars L.F. ( )
2003 2003
Jan. 1 To Cash Account 1,00,000 Dec. 31 By Balance c/d 1,00,000
1,00,000 1,00,000
2004 2004
Jan. 1 To Balance b/d 1,00,000 Dec. 31 By Balance c/d 1,00,000
1,00,000 1,00,000
2005 2005
Jan. 1 To Balance b/d 1,00,000 Dec. 31 By Balance c/d 1,00,000
1,00,000 1,00,000
2006 2006
Jan. 1 To Balance b/d 1,00,000 Dec. 31 By Depreciation Fund 1,00,000
A/c

1,00,000 1,00,000

Depreciation Fund Account
Date Particulars L.F. ( ) Date Particulars L.F. ( )
2003
Dec. 31 To Balance c/d 23,549 By Depreciation A/c 23,549
23,549 23,549
2004
Contd...
Dec. 31 To Balance c/d 48,040 By Balance b/d 23,549
By Cash A/c (Interest) 942
By Depreciation A/c 23,549
48,040
232 LOVELY PROFESSIONAL UNIVERSITY 48,040
2005
Dec. 31 To Balance c/d 73,511 By Balance b/d 48,040
By Cash (Interest) 1,922
By Depreciation A/c 23,549
73,511 73,511
2006
Dec. 31 To D.F. Investment A/c. 11 By Balance b/d 73,511
Dec. 31 To Machinery A/c 1,00,000 By Cash (Interest) 2,940
By Depreciation A/c 23,549
By P&L A/c 11
1,00,011 1,00,011