CA Inter – Advanced Accounting
Assignment Problems – Plant & Machinery
1. Balance Sheet
Assets 31.03.2024 (₹) 31.03.2025 (₹)
P&M 25,00,000 80,00,000
a) P&M purchased for cash ₹ 700,000
b) P&M purchased by cheque ₹ 500,000
c) P&M purchased for ₹ 900,000. The consideration was discharged by issue of debentures
at a discount of 10%.
d) P&M purchased for ₹ 12,00,000. The consideration was settled by issue of preference
shares at a premium of ₹ 2 per share.
e) P&M purchased for ₹ 600,000. The consideration was settled by issue of equity shares at
par.
f) P&M purchased and the consideration was settled by issue of 7000 debentures of ₹ 100
each issued at a discount of 20%.
g) P&M purchased and the consideration was settled by issue of 35,000 preference shares of
₹ 10 each at a premium of ₹ 2.
h) P&M purchased and the consideration was settled by issue of 50,000 equity shares at par.
i) P&M purchased
(i) Book Value of Land and building given up ₹ 500,000.
(ii) Fair value of Land & Building given up ₹ 700,000.
(iii) Book value of vehicle given up ₹ 500,000.
(iv) Fair value of vehicle given up ͅ₹ 900,000.
(v) Fair value of P&M acquired ₹ 15,00,000.
j) Furniture acquired in exchange for P&M
(i) Book Value of P&M given up ₹ 300,000.
(ii) Fair value of P&M given up ₹ 400,000.
(iii) Fair value of furniture acquired ₹ 450,000.
k) P&M purchased for cash in a rural area for ₹ 900,000. Grants received from government
₹ 100,000.
l) P&M revalued – Book value = ₹ 500,000; Fair Value = ₹ 600,000.
m) Depreciation for the year ₹ 600,000.
n) A P&M costing ₹ 700,000 (accumulated depreciation ₹ 300,000) sold at a profit of 20%
on sale.
o) P&M – Book Value = ₹ 500,000 sold at a loss of 10%.
p) P&M costing ₹ 600,000 (Book Value = ₹ 400,000) destroyed by fire. Insurance claim
received ₹ 250,000.
q) P&M costing ₹ 300,000 (Accumulated depreciation = ₹ 200,000) lost by theft. Insurance
company admitted a claim of ₹ 60,000 out of which ₹ 50,000 received by cheque.
r) Some P&M were discarded during the year, scrap value realised ₹ 20,000.
Prepare Plant & Machinery A/C.
2. Balance Sheet extract
Assets 31.03.2025(₹) 31.03.2024(₹)
P& M 41,00,000 12,00,000
a) P&M purchased for cash ₹ 6,00,000; By cheque ₹ 400,000.
b) P&M purchased and the consideration settled by issue of 5000 debentures at a premium
of 20%.
c) P&M purchased for ₹720,000. The consideration settled by issue of debentures at a
discount of 10%.
d) P&M purchased in exchange of L&B.
(i) Book Value of L&B - ₹600,000.
(ii) Fair value of L&B - ₹ 900,000.
(iii) Fair value of P&M acquired - ₹ 10,00,000.
e) A P&M acquired in exchange of vehicles & cash.
(i) Book value of vehicles given up - ₹ 600,000.
(ii) Fair value of vehicles given up - ₹ 900,000.
(iii) Cash Paid - ₹ 100,000.
(iv) Fair value of P&M acquired - ₹ 960,000
f) P&M purchased for cash ₹ 400,000 and grants received from government against the
purchase of P&M ₹ 100,000.
g) P&M costing ₹ 300,000 (Accumulated depreciation -₹ 180,000) destroyed by fire of
Insurance company admitted a claim of ₹ 90,000. Out of which ₹ 75,000 received
immediately by cheque.
h) P&M costing ₹ 400,000 (Book value - ₹ 300,000) discarded during the year. Scrap value
realised ₹ 100,000.
i) Depreciation for the year ₹ 600,000 on P&M.
j) Some machines were sold at a profit of 20% on sale.
Prepare P&M A/C
3. Balance Sheet
Assets 31.03.2024(₹) 31.03.2025(₹)
P&M 25,00,000 50,00,000
Less: Provision for Depreciation 10,00,000 20,00,000
Additional Information
a) P&M purchased ₹ 40,00,000
b) Depreciation for the year ₹ 18,00,000
c) Some machineries costing ₹10,00,000 (Accumulated depreciation - ₹ 500,000) sold at a loss of
10%.
d) Some machines costing ₹ 200,000 (Accumulated depreciation - ₹ 150,000) destroyed by fire.
Insurance claim received ₹ 30,000, receivable ₹ 10,000
e) Some machines discarded during the year, scrap value realised ₹ 90,000.
Prepare the following ledger A/Cs.
1. P&M A/c
2. Provision for depreciation A/c
3. P&M Disposal A/c
4. P&M Destroyed A/c
5. P&M Discarded A/c
4. Balance Sheet
Assets 31.03.2024(₹) 31.03.2025(₹)
P& M 500,000 12,00,000
Additional Information:
a) P&M purchased during the year ₹ 15,00,000.
b) Depreciation for the year ₹ 300,000.
c) Some machinery costing ₹ 500,000 (Accumulated Depreciation - ₹ 300,000) destroyed by fire.
Insurance claim received ₹ 80,000.
d) Some machineries costing ₹ 700,000 sold at a profit of 20%.
Prepare P&M A/C.
