Hello friends, now we are ready to take the discussion of
depreciation to the practical mode and through this lecture
we will start the practical discussion of depreciation I
will present a case in front of you, you will write it, we
will solve that case on the pad first and then we will go
to teleprime and in teleprime we will see how we will
account for that case and how will be the talks related to
depreciation so first of all write with me, case 1,
depreciation case 1
A limited purchased on 1st January 2023
Certain machinery for Rs.
5,82,000 and spent Rs.
18,000 on its erection on 1st July 2023
Another machine for Rs.
2,00,000 was acquired on 1st July 2024
The machinery purchased on 1st January 2023 having become
obsolete was auctioned for Rs.
3,86,000 and on the same date, fresh machinery was
purchased at a cost of Rs.
Rate of depreciation is equal to 10% on written down value
method
Pass journal entries and prepare machinery account
Note this down Let's understand this first
There is a company named A limited
Purchased on 1st January 2023
Let's remove the word limited because companies follow 1st
April to 31st March and we are going with January because
this time I want to show you that if an organization
follows January to December then how we select our
financial year from January to December
So do one thing, do A enterprises It is an individual
business, not a company
A enterprises, its name is A enterprises Purchased on 1st
January 2023
Machinery of Rs.
Purchased on 1st January 2023 and spent Rs.
18,000 on its erection 1st July 2023
January, February, March, April, May, June
After 6 months in 2023
When date came 1st July 2023
That day another machine for Rs.
2,00,000 was acquired
Purchased another machinery for Rs.
Now after that one more year passed
When date came 1st July 2023
When date came 1st July 2024
Machinery purchased on 1st January 2023
Total Rs.
Having become obsolete Machinery was no more useful
We sold it We earned Rs.
Sir, when it was no more useful How did you earn so much
money?
It was not useful for us, it was useful for others
It was not like it stopped working It was not useful for us
And on the same date
On 1st July 2024
Fresh machinery was purchased
At a cost of Rs.
Purchased another machinery for Rs.
If one machinery is going, you will need another one
So you purchased another machinery for Rs.
Depreciation rate is 10%
With return down value method
You have to pass journal entry
And make a machinery account
First we make a photograph of all questions
Then we will do journal entry
We will make a machinery account
Then we will reach teleprime
Come friends
Come with me Let's go with me
Let's make a photograph of all questions So that things are
better understood
We are doing the first practical case For the first time
We are doing the practical case
Of depreciation
I am doing depreciation from the beginning Purchasing
assets, depositing
Then selling
We will make you do everything
If this is understood
Then you will understand the case of depreciation
That's why we are taking so much time
The first date is
January 1, 2023 From where our question starts
On January 1, 2023
We purchased machinery no.
Machinery no.
Purchased How much did we purchase?
Rs. 5,82,000
How much did we spend on erection? Rs. 18,000 for
installation
Rs. 18,000 for installation
In total, this machine cost us Rs.
Machinery no.
After that, on July 1
That is when we have
In the year 2023
January, February, March
April, May
And June
Months passed
On July 1, 2023
On this day
We purchased machinery no.
How much did we spend?
Rs. 2,00,000
It is very important to clear the month
How many months have passed?
How many months are left?
It is very important to clear the month
It is very necessary
On July 1, 2023
We purchased machinery for Rs.
On July 1, 2023
This year will end
And the next year will also end
The date is July 1, 2023
In my case
The next date is
July 1, 2024
The next date is July 1, 2024
I have to go one year ahead
This year will end
July, August, September
This year will end
July, August, September
The next year will also start
January 1, 2024
The next year will also end
March, April, June
The date will be July 1, 2024
July 1, 2023
If you have to come one year ahead
July 1, 2024
The next year will end
Okay What will happen on July 1, 2024? On 1st July, you
sold your first machine for Rs. 3,86,000 and bought a new
one for Rs. 4,00,000.
You sold this machine for Rs. 3,86,000 and got Rs. 3,86,000.
On the same day, you purchased machinery no. 3 for Rs.
4,00,000.
Depreciation was provided for annually on 31st December at
the rate of 10%.
Now, you just have to close the year.
July, August, September, October, November, December.
This year will also be closed.
31st December, 2024.
This year will also be closed.
So, this was some information in our question.
Note down the whole photo properly.
Now, let's start with the journal entries.
I hope you will remember to follow what you have been
taught.
If you have not done the revision, please do it.
The first entry will be on 1st January, 2023.
1st January, 2023.
When you are buying machinery, how much will it cost?
Rs. 6,00,000
However, when you enter the machinery account on 1st
January, 2023, you will first write here,
Machinery Account Debit.
You will get only Rs. 6,00,000.
But friend, here you have to show how much Rs. 6,00,000 is.
Rs. 5,82,000 is your cost price plus Rs.
18,000 you have spent on erection.
The expense of erection is related to the machine.
So, it will be in the cost of the machine.
So, it will be in the machinery account.
But you should know what is the break-up of Rs. 6,00,000.
That's why.
Okay, sir.
And we have made the payment.
So, it will be here.
To Bank Account Rs.
Sir, for example, if we had not made the payment.
This is something to be asked.
If you had not made the payment, what would have happened?
The name of the creator would have come.
There is no problem in this.
Okay, sir.
Being Machinery Purchased and payment made by cheque.
And you have to write the number of cheque in the telly
when you enter the payment voucher.
Payment made by cheque.
Being Machinery Purchased and payment made by cheque.
Cheque.
Okay, sir.
This will be the entry on 1st January, 2023.
Okay, sir.
What will happen after this?
After this, 6 months have passed.
1, 2, 3, 4, 5, 6.
And on 1st July, 2023, we bought the second machinery.
We purchased machinery number 2 for Rs. 2,00,000.
So, the next entry will be on 1st July, 2023.
The next entry will be on 1st July, 2023.
In which we will debit the machinery account once again.
This was machinery number 1.
This is machinery number 2.
And this time, how much are we purchasing?
This time, sir, we are purchasing for Rs. 2,00,000.
This time, we are purchasing for Rs. 2,00,000.
So, the amount here will be Rs. 2,00,000.
Okay, sir.
We don't have any problem.
Rs. 2,00,000.
This has also been paid.
We are assuming that this is a payment case that we are
paying in cash.
Anyway, there is such a big amount.
You have to pay.
You can't delay it for too long.
Bank.
Machinery second purchased and payment made by cheque.
Purchased and payment made by cheque.
Payment made by cheque.
Okay, sir.
So, we have reached 1st July.
We have completed the work till 1st July.
Now, what is it?
After 1st July.
Now, you must be thinking that the next work will be on 1st
July 24th.
After 1st July 23rd, the next work will be on 1st July 24th.
No.
Between 1st July 23rd and 1st July 24th, there is a date.
Which date is it? 31st December, 2023.
This is the last date of the year.
Last date of the year.
What happens on this day?
This is the day when depreciation occurs.
Oh! Okay, sir.
So, you have to make the next entry on 31st December, 2023.
So, write.
31st December, 2023.
Your next entry will be here.
Which will be of depreciation.
Now, tell me what is the entry of depreciation?
If you have studied well.
Now, don't think that you will tell depreciation to
machinery quickly.
I have told you the case.
I have told you.
If anyone asks you the entry of depreciation in your life.
Then tell him.
Which is the case?
First tell me.
Is there provision or not?
What was in our case?
See, the case we are doing.
There is no discussion of provision anywhere.
So, there is no provision for depreciation here.
In our case.
That's why.
Now we can say.
Easily.
With full confidence.
Depreciation account.
Debit to machinery account.
This will be the entry of depreciation.
Now, friends.
Listen.
What is the rate told in the question?
They are telling you.
You have to apply 10% with return down value method.
Okay.
So, see.
On the first machinery.
It will take 10% on the whole 6 lakhs.
When did you buy the first machinery?
On the first day of the year.
And when are you applying depreciation? 31st December 2023.
That is the last day of the year.
So, you have run the first machinery for 12 months.
That's why apply 10% on 6 lakhs.
The depreciation of the whole year.
60,000 will come out.
On the first machine.
But if I talk about the second machine.
Which I have.
I have bought the second machine of 2 lakhs.
I will apply 10% depreciation on it.
But only for 6 months.
Because I bought it on 1st July 2023.
And now 31st December 2023.
Means 6 months have passed.
July, August, September, October, November, December.
6 months have passed.
So, I will apply depreciation of 6 months on it.
10% of 2 lakhs is 20,000.
Multiply by 6, you will get 10,000.
So, 60 and 10.
In total, you will have 70,000 rupees.
70,000 rupees.
In total, you will have 70,000.
Means 70,000 rupees, friends.
Oh, okay, sir.
No problem.
It will be 70,000.
Yes.
So, depreciation account debit to machine will come.
70,000 and 70,000.
Now, sir, we have applied depreciation.
Now there is no problem.
Now we can move forward.
On 1st July 2024.
No.
If this is the case, then you broke the oath again.
I had given you an oath.
With the entry of depreciation to machinery.
Profit and loss account debit to depreciation account.
This entry.
Don't forget.
Stick together.
Friends, you forgot.
P&L account debit to depreciation account.
This entry runs.
Stick to it.
4 super hit songs on Red FM.
Stick to it.
With Deption to machinery.
P&L to Deption entry.
Stick to it.
Don't forget it.
Please.
Please don't forget it.
Okay, sir.
Remember.
After this, you can move forward.
And on 1st July 2024.
You can enter to buy 3rd machine.
Come on 1st July 2024.
And buy 3rd machine.
What will we write in their narration?
Being depreciation charged.
For full year.
On machinery 1.
And for 6 months.
On machinery 2.
If you write it completely.
It will be very good in narration.
For you to understand.
When you will go to teleprime again.
If you will write it completely in narration.
After some time, you will also understand.
How this 70,000 will come.
When you have passed your entry in teleprime.
You will come back and see after some time.
And P&L to depreciation.
Its narration is.
Being depreciation transferred to P&L account.
TF means transferred.
Okay, sir.
Now on 1st July 2024.
You enter to buy 3rd machine.
1st July 2024.
Machinery account debit.
Number 3.
To bank account.
How much did we buy 3rd machinery on 1st July 2024.
4 lakh rupees.
Machinery account debit to bank account.
4 lakh rupees.
Being machinery number 3.
Purchased and payment made by cheque.
Okay.
Write.
This is done.
Okay.
Now, on 1st July, 2024, one more thing is happening.
On 1st July, 2024, we have done this work of buying the
third machine.
On 1st July, 2024, we are going to do the sale.
And friends, now remember, in the case of sale, what is the
entry?
It has 4 parts.
PD is not there, AD is also not there.
1st case.
2nd case, PD is there, AD is not there.
3rd case, PD is not there, AD is there.
And 4th case, PD is also there, AD is also there.
Accordingly, we used to do the sale entries.
Yes, sir.
So, PD means Provision for Depreciation and AD means Asset
Disposal.
You tell, you read the whole question.
Was there any mention of PD, Provision for Depreciation?
No, sir.
Was there any mention of Asset Disposal, AD?
No, sir.
So, there is neither Provision for Depreciation nor Asset
Disposal.
There is neither PD nor AD.
So, what was the entry of sale in such a case?
Sir, in such a case, the same entry of sale was there.
In such a case, the same entry of sale was there.
Which entry?
Bank Account Debit to Machinery Account.
And how much did we sell in rupees?
We have sold in Rs. 3,86,000.
So, the entry will come.
Bank Account Debit to Machinery Account, Rs. 3,86,000.
Rs. 3,86,000.
Sir, we are able to see in our notes.
In the case of No PD, No AD, this is the entry.
Bank Account Debit to Machinery, Rs. 386,000.
I said, absolutely right, good.
But, friends, you will break a promise again.
If you have entered here,
Bank Account Debit to Machinery Account, Rs. 386,000.
You will break a promise again.
If you have entered here.
Sir, which promise has broken now?
Remember.
Remember, friends. Remember.
I had told you.
Whenever there is a sale.
So, on the first day of the year.
From 1st January, 2024.
Depreciation till the date of sale.
Don't forget to apply.
Depreciation till the date of sale.
Don't forget, friends.
I had given you this promise.
One of the three promises was also that.
When there is a sale.
So, from the first day of the year.
Depreciation till the date of sale.
We will not forget.
Look, brother.
You are selling it on 1st July, 2024.
So, till 1st January, 2024.
You have applied depreciation.
When did you enter the last depreciation?
Sir, on 31st December, 2023.
And when are you selling the machinery today?
On 1st July, 2024.
So, it has been 6 months.
Jan, Feb, March, April, May, June, 2024.
It has been 6 months of 2024.
What do you have to do?
You have to apply depreciation for 6 months.
Before that, you have to enter the sale.
Okay, sir.
Apply depreciation for 6 months.
Depreciation account debit 2.
On which machinery will you apply?
We are not selling machinery 2 and 3.
We will apply depreciation on them.
On 31st December, 2024.
We will apply depreciation on them.
Now, we are selling machinery number 1.
So, depreciation from the first day of the year.
Till the date of sale.
We will apply depreciation on machinery number 1.
So, depreciation account debit 2.
Machinery account.
Machinery number 1 account.
And how will the amount come out?
Sir, it is very simple.
Machinery number 1.
We had 6 lakhs.
Apply 10% on 6 lakhs.
And because, sir.
We have to calculate from 1st January to 1st July.
So, sir.
Multiply 6 months by 6.12.
Wrong, friends.
See, what is the method?
Method is written down value method.
Your organization follows WDV method.
Where you are doing job.
They do not give importance to straight line method.
They follow WDV method.
They follow written down value method.
What is the meaning of written down value method?
I had taught you.
The day you take out depreciation.
So, that 10% rate.
From your cost price.
After minus depreciation till date.
The remaining value will be applied on that.
So, it will not be applied on 6 lakhs.
10%.
Out of 6 lakhs.
How much depreciation you have already applied.
Remove that.
And apply 10% on the remaining value.
This is WDV method.
You want to apply 10% on 1st July, 24.
10% 100.
1st July, 24.
Okay.
And for this, what you have to do?
First, you have to take cost price.
That is 6 lakhs.
Out of that, how much depreciation you have applied till
date.
31st December, 2023.
Remove that.
How much depreciation we have applied on 6 lakhs.
60,000.
We have applied depreciation of 60,000 on 6 lakhs.
This is your run.
You have applied 10% on 6 lakhs.
60,000.
So, till 31st December, 2023.
You have applied depreciation of 60,000 on 6 lakhs.
Means, how much that machine was left? 6 lakhs minus 60,000.
Means, 5,40,000.
5,40,000.
Yes, sir.
Now, you have to apply depreciation 6 months ahead.
10% on 5,40,000.
Out of 6 times.
I got the value of 31st December, 2023.
How much I got? 5,40,000.
And I have to apply depreciation till 1st July, 2024.
So, I will apply 10% on 5,40,000.
I have to apply for 6 months.
So, I will multiply 6 by 12.
How much I will get? 27,027,000.
27,027,000.
Absolutely right.
Very good.
Well done.
Sir, now we have applied depreciation.
We have also kept the promise.
Now, we can pass the entry of sale.
We can pass the entry of sale.
Now, those people who think that they can pass the entry of
sale.
They are breaking the promise again.
Sir, what are you saying?
What promise have we broken now?
You have broken the same promise again.
P&L account debit to depreciation.
Whenever depreciation will be applied.
Whenever this entry will be done.
Deption to machinery.
Then.
P&L account debit to depreciation account.
This entry will stick together.
27,027,000.
It will stick here also.
Yes.
Okay.
It is a very important thing.
Yes.
There is no problem in teleprime.
Don't worry.
Teleprime itself passes it.
But we will make you check through the process.
As soon as you enter the deption.
Go to P&L and see if the effect has come there or not.
We will have to explain the whole process.
We will take the whole process with you.
Okay, sir.
Now, you enter the sale.
On 1st July, 2024.
In the case of no PD, no AD.
The entry of the sale is.
Bank account debit to machinery account.
How much has been sold? 3,86,000.
So here it will come.
3,86,000.
Write.
Being.
Machinery sold.
And.
Amount received by check.
Being machinery sold.
And amount received by check.
Amount received by check.
Okay, sir.
We have written here.
Written.
Very, very, very, very, very good.
This is done.
Bank to machinery.
3,86,000.
Okay, sir.
Now.
Now it will come out.
Profit or loss on sale.
When there is no AD.
When there is no asset disposal.
And if there is a profit.
What is the entry?
Machinery account.
Debit to P&L account.
And if there is a loss.
P&L account.
Debit to machinery account.
We will have to see.
We know that there is no AD.
But we will have to see.
Profit or loss.
Yes, sir.
So come on July 1, 24.
We will do the calculation.
Is there a profit or loss?
Calculation of.
Profit Oblig loss.
On sale of machinery.
Profit Oblig loss.
On sale of machinery.
Is there a profit or loss?
On the sale of machinery.
Let's see this.
For this, we need two things.
We need two things.
One we need.
How much did we sell?
Sale price.
On July 1, 24.
The day we are selling.
How much did we sell the goods? 3,86,000.
One we need this.
Got 3,86,000.
Okay.
A.
We got this.
We need one more thing.
B.
What is that thing?
What was the return down value?
Return down value of machinery.
On July 1, 24.
What was its value in our books?
We sold it for 3,86,000.
But what was its value in our books?
This should also be known.
When we will know.
What was its value in our books?
Then we will compare.
In how much did we sell?
If we sell more.
Then profit will come.
If we sell less.
Then loss will come.
So we need one more thing.
In our books.
This machinery.
In our books.
WDV.
Return down value.
What was it?
Return down value.
What was it?
How will we get it?
Very simple.
You bought it.
On January 1, 2023.
In how much money?
You bought it for 6,00,000.
Okay.
How much depreciation did you put on it in the first year?
You put 60,000.
Then you.
For the next 6 months.
When you reached July 1, 24.
Till the date of sale.
Till then how much depreciation did you put? 27,000.
So what value will be left of it?
What value will be left of it?
See.
6,00,000 minus 60,000.
Minus 27,000.
5,13,000.
However, teleprime.
it will automatically give you the value your value in
telly on 1 july 24 will be 5,13,000 you will get it in
telly prime don't worry but how it came in telly prime you
should know what software is doing you should know it is
important that we should know in our books machinery was of
5,13 minus 3,86 it was more for us and we got money it is a
loss it is a loss of 1,27,000 the loss is rupees 1,27,000
this is the loss and how it comes
B minus 5,13 minus 3,86 the loss is 1,27,000 now tell me
when there is no asset disposal we have written the entry
sir we have written the entry profit and loss account debit
to machinery account profit and loss account debit to
machinery account 1,27,000 1,27,000 write 1,27,000 and
1,27,000 write it write it we have written being
loss on sale of machinery
transfer to profit and loss account
P and L account being loss on sale of machinery transfer to
profit and loss account now my dear friends 1 july 2024
here you have entered to sell the machinery you have
entered to buy and you have entered the profit and loss and
from the first day of the year to date of sale you have
transferred it to P and L
P and L to Deption you have done all these things are you
paying attention to one thing let me make a summary let me
make a summary what all we have to do on sale number 1 from
the first day of the year from the first day of the year to
date of sale to date of sale we have to deposit
depreciation we have to charge depreciation what we have
done
Deption account debit to machinery 2,27,000 on second number
Deption account debit to machinery
Deption account debit to machinery 2,27,000 we have to
transfer it to P and L
P and L account debit to Deption you have to see this entry
in telly here also transfer word is written third thing
what we have to do we have to do sale entries we have to do
sale entries from those 4 cases 4 cases were no PD no AD
yes PD no AD no PDS AD yes PD PD no matter after sale
entries what we have to do at the time of sale we have to
do profit or loss we have to do profit or loss at the time
of sale we have to keep these 4 things in mind my dear
friends government is right ok very very
we are the same ok now last day of second year 31st
December last day of second year 31st December 31st
December 31st December what we have to do we have to
deposit on which machine 2 and 3 2 and 3 2 and 3 yes and
you don't have to say you have to transfer it in PNDEL
write depreciation account debit to machinery number 2
account and machinery number 3 account
how much depreciation will take on machinery 2 machinery 2
in how much you bought it in 2 lakhs when? 1st July 2023
for these 6 months how much depreciation you put on
machinery number 2 10,000 so 31st December 1st July 1st
January what is the value of machinery number 2 2,00,000
minus 60,000 2,00,000 minus 60,000 2,00,000 minus 60,000
1,40,000 if we subtract 10% how much will be 14,000 14,000
1,40,000 10% 14,000 sorry sorry 10,000 2 lakhs 1,90,000 10%
19,000 4 2 lakhs because you are
complete amount 1st January 24 to 23rd January 24
when you bought machinery number 2 on 1st July 23 3rd July
6 month's depreciation 1st January 24 to 1st January 24 it
is 12 month's depreciation you are putting all 12 month's
depreciation all 12 months depreciation 10,000 you cannot
increase all how it will worked
If you have invested 10,000, you can reduce it to 90.
This is the return down value method.
Reduce the cost as much as you can.
And put 10% on the remaining value.
Machine day number 3.
On machine day number 3, it will take 6 months from 1st
July 24 to 31st December 24.
It will take 4 lakhs.
Because we bought it on 1st July 24.
We have had it for 6 months.
You will get 10% on 4 lakhs.
For 6 months.
Into 6 divided by 12.
How much will it be? 10% into 6 divided by 12.
It will be 20,000.
19 and 20.
Total depreciation will be 39,000 rupees.
39,000 rupees.
Being depreciation charged
on machinery 2 for full year
and on machinery 3 for 6 months.
And on machinery 3 for 6 months.
Total depreciation will be 39,000 rupees.
Don't forget.
Profit and loss account debit to depreciation account.
39,000 rupees.
Note it down.
Let's go.
Did you write it?
Yes, sir.
Now see the demand of your question.
What was the demand of your question?
We have passed the general entries.
Now we have to make a machinery account.
How to make an account from these entries?
See this.
It was taught you in leisure.
We are going to make an account from entries.
How to make an account from entries?
Let's make an account format first.
It's not a big deal.
We are making a leisure from general entries.
Account means leisure.
I told you in leisure.
Single account is called account.
It is used interchangeably.
Account word is called leisure.
It is used interchangeably.
It will be made by looking at entries.
Those who have seen leisure well,
They will understand.
Machinery account.
Sir, why are you making this?
Tally will make it and present it to you.
But you should not know how Tally made it.
You should not know how Tally posted it.
Sir, you should know.
That's it.
Date
Particular
Amount Date, Particulars, Amount
Date, Particulars, Amount, Date, Particular, Amount
Write it all
And you have to post entries one by one
And don't do anything else
It's a very simple river
No need to dive
Just jump in the air
There is no problem
The first entry is
January 1, 2023
Machinery Account Debit to Bank Account
So here it will come
January 1, 2023
Entry in Machinery Account
Debit side
To Bank Account
How do we do leisure posting?
How do we make an account by looking at the entry?
Look, I'll give you a rule
Look at the entry
Machinery Account Debit or Credit
Like in the first entry
Machinery Account Debit in the first entry 6 Lakh Rupees
So come here in Machinery Account
And Debit side
Write 6 Lakh Rupees on the Debit side
The date will come here
Write the amount here 6 Lakh Rupees
And what will come in Particulars?
Where will this 2 Bank come from?
In your entry
Where Machinery Account is debiting
Whatever is written below that will come
What is written below? 2 Bank Account 2 Bank Account will
come here
So this is the entry
You can read your entry from here
There is nothing to eat
It was told to you at the time of leisure
There is a summary of general entries
All general entries related to one item
If the summary is written at one place
I say again
All general entries related to one item
If it is written in a summarized way
Then it becomes an account
Of that particular thing
Machinery Account
Wherever general entries are used
Taking the effect of all
Going to write at one place
So Machinery Account is being made
Ok Sir
You can also read the entry from here
What is the account?
The account is made from the entry
Here is the entry
Machinery Account
Debit 2 Bank Account
So what else is hidden in the account?
Nothing Look carefully
Machinery Account
Debit 2 Bank Account
What else is hidden in the account?
Nothing How much money? 6 Lakh Rupees
Machinery Account
Debit 2 Bank Account 6 Lakh 6 Lakh 6 Lakh Rupees
Next we will see
What is the next entry?
The next entry is
Machinery Account
Debit 2 Bank Account
Again
So how will we post this entry?
Same rule
Machinery Account
Debit 2 Lakh Rupees
So come to Machinery Account
And write Debit side 2 Lakh Rupees
And here the date will come 1st July 2023
And remember
If the year is not closed in between
If the year was closed
Then first take out the balance sheet
And then do the work next year
But now the same year is going on 2023 That's why we are
writing
No problem
Take care of the year close in between
Okay Sir
And what is written below 2 Bank Account will come there
2 Bank Account will go here
What is written below 2 Bank Account 2 Lakh Rupees
Read from here
You are making this
Machinery Account
Debit 2 Bank Account 2 Lakh Rupees
Okay Sir
The second entry is also posted
Sir, now post the third entry
Where is the third entry?
Depreciation Account Debit 2 Machinery Account
In this entry
Machinery Account
Debit or Credit 2 Machinery Account is written 2 means
Credit
Means in this entry
Machinery Account
Credit is happening 70,000 Rupees
So in Machinery Account
We will write Credit side
How much Rupees? 70,000 Rupees
And this entry is happening
Last day of the year
So the date will come 31st December 2023
Date will come 31st December 2023
Now friends
You write this 70,000 separately
How did this 70,000 come? 60,000 was of the first machine
10,000 was depreciation of the second machine
So write it separately
Write here
By Depreciation
This was machine number 1 6 Lakh Rupees
This was machine number 2
Write here
By Depreciation
Leave 70,000 outside
But inside you should know
How much is on machine 1
And how much is on machine 2
Machine 1 has 60 Rupees
And machine 2 has 10 Rupees
So this 70,000 is coming outside
This 70,000 is coming outside
Ok Sir
Ok Next Entry
Next Entry
P&L Account Debit to Depreciation
This entry will not come in your Machinery Account
Ask why friends?
In Machinery Account
The same journal entry will be posted
In which journal entry
Either Machinery Account is debiting
Or Machinery Account is getting credit
In this entry you see
Neither Machinery Account is debiting
Nor Machinery Account is getting credit
So how will it come?
How will it not come?
Ok Sir
This entry is affecting
P&L Account and Depreciation Account
It is not affecting Machinery Account
So this will not be posted in Machinery Account
This will not be posted in Machinery Account
Ok Sir
Ok Next entry will be posted
Yes In this entry
Machinery Account is debiting 4 Lakh Rupees
Below is written
To Bank Account 4 Lakh
You bought number 3
So do the same thing
Come in Machinery Account
And write Debit Side 4 Lakh
Right? Come in Machinery Account
And write Debit Side 4 Lakh
If you agree with this
Then you forgot
What I said
A little while ago
Again Oh Bro
Year ends on 31st December
Before posting next entry
In Machinery Account
Close the year
And close your account
Oh ho ho ho
On 31st December 2023
Close this account
Balance this account
In this account
Debit side total is 6 and 2 8 Lakh
And credit side total is 70,000 So from 8 Lakh
Minus 70,000
And see how much is left
Credit side
This is left
Sir 7,30,000 So write here 7,30,000 Machinery Account
Balance Is to be applied
On the last date of the year
So on the last date of the year
On 31st December 2023 We will write
Buy Balance CD 730 We have 2 Machineries 1st and 2nd
Tell me
How much balance is left
Of the 1st Machine 6 Lakh
Minus 60,000 5,40,000 How much is left
Of the 2nd Machine 2 Lakh
Minus 10,000 1,90,000 And 5,40,000
And 1,90,000
Interesting 730 will come 5,40,000 And 1,90,000
How much will come 7,30,000 will come
What is the total of this side 8 Lakh
And what is the total of this side 8 Lakh 8 Lakh 8 Lakh
And 8 Lakh
Ok Ok
Why will we apply debt on those
That have not been sold
On 31st July
We will use
Balance on 31st December
Oh Ok Yes Ok Yes Yes Ok Ok Next Entry
P & L to depreciation
This entry
Won't get posted
In my machine's account
Why Why Why Why Why Start Dollar Mover Dec畫 Make Just like
that, because here neither the machinery is debited nor the
credit is done.
Next entry is on 1st July, 2024.
Next entry on 1st July, 2024 is to sell machinery.
Bank account debit to machinery account 386.
Tell me friends, all my dear children, tell me.
In this entry, is the machinery account debited or credited?
Sir, it is credited with 386.
So, what will we do?
We will write the credit side as 386,000.
So, here in the machinery account, write the credit side as
386,000.
What name will you give it?
Everyone tell me.
Those who are thinking about buy bank, I would like to
congratulate them.
Your answer is absolutely correct.
In the entry, what is written above the machinery?
Will it be above or below?
If there is nothing below, then pick the one above.
If there is nothing above, then pick the one below.
Buy bank account.
And write the debit side as 2 and the credit side as 5.
You should know this.
Buy bank account 386.
This entry is only on July 1, 2024.
Next entry.
Entry of loss.
The loss of 1,27,000.
What is happening in this?
The machinery account is being credited with 1,27,000.
So, in the machinery account, we will write the credit side
as 1,27,000.
And we will write the name above it.
Buy profit and loss account.
Write July 1, 2024.
Buy P&L account.
Loss on sale of machinery.
Loss on sale of machinery is 1,27,000.
What to do after this?
See friends.
Come back to your entries after this.
What is happening now?
Depreciation on machinery number 2 and 3.
You have to put this.
Depreciation on machinery number 2 and 3.
How much? 19 and 20.
So, the credit side on the machinery account.
Here the machinery is credited.
2 machinery, 2 machinery.
Write the credit side as 19 and 20.
The name will come which is written above it.
That is, buy depreciation.
So, take this.
31 December 2024.
Buy depreciation account.
39,049,000.
Write it.
How much is on the first machine?
It is not on the first.
It has gone up by 2,27,000.
It is on the second and third machinery.
19,000 on the second and 20,000 on the third.
Total is 39,000.
Write.
Total is 39,000.
All the entries have come.
Yes.
After that, something else.
This entry.
P&L to depreciation 49,000.
This will not come.
This will not come in the machinery account.
Now find the balance of the machinery account.
Put the balance of the machinery account.
Write the total of the debit side.
How much is coming? 7, 30 and 4.
11,30,000.
How much is the total of the credit side?
Sir, this is 27,000.
Plus 3,86,000.
Plus 1,27,000.
Plus 39,000.
5,89,000.
Sir, this is 5,79,000.
Okay.
This is the step of balancing.
Write the total of the debit side.
Write the total of the credit side.
What do you have to do now?
Now you don't have to do anything.
Minus small from big.
11,30,000.
Minus 5,79,000.
5,51,000.
And write on the small side.
What is the small side?
Credit.
So write on the credit side.
5,51,000.
This is the balance of your machinery account.
At 5,50,000.
31 December 2024.
This is left.
By balance CD.
5,51,000.
Now which machines are left?
Tell me the break-up of 5,51,000.
Which machines?
Sir, some value of the second machinery is left.
And in this, the third.
How much is left of the second?
Brother, see this.
What was the value of the second machinery on 1 January 24?
1,90,000.
Pay attention to my highlighter.
On 1 January 24, the value of the second machinery was
1,90,000.
And how much debt did you put on the second machinery?
19,000.
So 1,90,000 minus 19,000.
How much is left?
1,71,000.
If I talk about my third machinery.
How much depreciation did I put on 4,00,000? 20,000.
4,00,000 minus 20.
How much is left? 3,80,000.
And you add it up and see.
3,80,000 and 1,71,000.
This will be 5,51,000.
And the total on both sides will be 11,30,000.
And 11,30,000.
The total on both sides will be the same.
11,30,000.
And 11,30,000.
It is important to have different break-ups.
Because when we analyze in Tally, we will be given
different break-ups.
So it is important to have different break-ups.
Yes, sir.
Everyone write.
Yes, sir.
Okay.
So this is the discussion of the entire case.
In this case, we learned the entry to buy.
We learned the entry of deposition.
We learned the entry to transfer.
We learned the entry of sale.
We learned to deposit and transfer from the first day of
the year to the date of sale.
We learned the profit or loss on sale.
And after that, we learned how to close the year.
Everything.
We have seen all this in the form of general entries.
And we have seen all this in the form of ledger.
That is, we have seen it by making its accounts.
We have seen it in the form of general entries.
And we have seen it in the form of accounts.
We have seen it by making its accounts.
Okay.
Now assume, for example,
I ask you to make a P&L account by looking at these entries.
Will you make it?
Yes, sir. I will definitely make it.
This will be the rule of posting till now.
This is the rule of posting.
It will not change.
Because I will also show you P&L account in Tally.
Okay, sir.
I will ask you to make a deposition account by looking at
these entries.
Will you make it?
Will you make it according to me?
In Tally, he will also make a deposition account.
In Tally, whose account will he make?
He will give us, sir.
In Tally, he will make everyone's account.
What does Tally do?
Whatever general entry you pass in Tally,
In it, whatever account name you give,
He makes everyone's account.
He will offer Telly account of a machinery account.
He will offer a bank account of his Tally account.
Machinery bank.
He will give a depreciation account.
Machinery bank.
He will make a P&L account.
It became Deption.
Machinery pank.
Deption machinery pandle option bank machinery bank.
So, for the total Tally, 1,2 Deption P&L 3,4 Machinery bank.
He will make 4 accounts.
So I tell you
What will be the effect of these entries in the bank
account?
Will you tell me?
I will show you
I will show you anything
We have learned the rules of ledger posting once
So ledger posting remains the same
Yes, it was also taught to you in the chapter of ledger
If you learn posting once
Then the rules are the same
How do you make an account from the journal?
The rules will not change
The rules never change
That's why you have a homework today
Maybe I have given you homework in many days
You have a homework
Beyond this case
You have to make a P&L account
Looking at these entries
Number 1
Number 2
You have to make a depreciation account
Looking at these entries
Okay sir
And number 3
Don't make a bank
Don't make a bank account
Make a bank account
Take the opening balance of the bank account 20 lakhs
When you make a bank account
Write 2 balance BD
There is an asset of the bank
Its opening balance comes on the debit side
Take the asset side opening balance 20 lakhs
Then post the effect of all the entries
So these three things
Are in your homework today
My dear friends
Okay sir
And then we will post all these
In the upcoming lectures
Once you practice this question by hand
Then it will be very good
Everything will be fine
Because friends
No matter how much you hear
No matter how much you see
Until you do not calculate by hand
There will be no benefit
You are completely new
We are teaching you at that level
We have accepted that you do not know anything
The matter is completely zero
That's why we have brought you from the root
And whatever we have put for 3-4 hours
We have picked you up from the root
And brought you to a very good level
Now it is your duty
That you take these things in grip
And now go to the upper bracket from here
The upper bracket from here is the same
Do this thing practically
So it will not happen suddenly
Until you practice this thing by hand
It will not be fun
I am saying again that depreciation is not very complicated
You have understood everything
It will not be possible without revision
Kindly do revision on yourself and me
Thank you bye bye and take care