Plant and Machinery Register (With Illustration) | Depreciation

In this article we will discuss about the plant and machinery register.

Concerns having a large number of machines usually maintain a Plant and Machinery Register. The maintenance of such a register facilitates the calculation of annual charge of depreciation in respect of each machine.

Each machine and plant is allocated a separate folio wherein are recorded the particulars relating to the machine such as purchase price, date of purchase, name and address of the supplier, guarantee given, if any, estimated life, estimated scrap value, rate of depreciation, method of depreciation used, details and cost of repairs undertaken and the dates of such repairs.

The ruling of a plant and machinery register is given as follows:

Plant and Machinery Register

In the plant and machinery register, a folio is allocated to each plant and machinery wherein are recorded all the particulars relating to the machine. There is also a provision for recording of additions and disposals. Thus, all particulars relating to a machine can be had at a glance. This register also helps to determine the value of the asset on any particular date and to compute the annual charge for depreciation.

Additional information relating to the machine, such as particulars of spare parts supplied free, the dates on which such spare parts are used may also be recorded in the register. Particulars of spare parts purchased may be shown in the column for repairs and renewals.

Illustration 1:

New Enterprises Ltd. Calcutta imported a plant bending machine fitted with 10 H.P. motor from the Machine Builders Ltd. Norwich, England who submitted their invoice M.T. 101 dated 30-9-2006. The invoice price in rupees was 1,26,000, ocean freight RS.8,000, insurance Rs.2,000, custom duty 30% of C.I.F. value, port trust dues amount to Rs.1,000, cartage to transport the machine to the works amounted to f 300.

Foundation, electric wiring etc. cost Rs.2,700. It was commissioned on July 1, 2007 at the north end of the 2nd bay in the shop. Draw up a complete plant register for four years providing depreciation @ 10 per cent on the diminishing value. Ignore development rebate and extra shift allowance.

Solution:

Plant Register

, , , ,

shopify traffic stats