Problem No 4 Chapter No 11 - Unimax 11 Class

Problem No 4 Chapter No 11 - Unimax Class 11

X Ltd. Purchases a machinery for ₹ 8,00,000 on 1st January 2016. On 1st July,2017 it purchased a new machinery for ₹ 2,85,000 and spent ₹ 15,000 towards its carriage and installation. On 1st qctober,2018 it purchased another machinery for ₹ 2,00,000. The machinery purchases on 1st July, 2017 was sold off on 31st march,2020 for ₹ 1,55,000. Depreciation is charges @ 15% p.a. on straight line method. Prepare machinery account and depreciation account for 5 years assuming that the books are closed on 31st march every year.

The solution of Problem No 4 Chapter No 11 -

Dr.	Machine A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1/1/2016	To Bank A/c		8,00,000	31/03/16	By Deprecation A/c		30,000
				31/03/14	By Balance C/d		7,70,000
			8,00,000				8,00,000
1/4/2016	To Balance b/d		7,70,000	31/03/17	By Deprecation A/c		1,20,000
				31/03/17	By Balance C/d		6,50,000
			7,70,000				7,70,000
1/4/2017	To Balance b/d		6,50,000	31/03/18	By Deprecation A/c		1,53,750
1/7/2017	To Bank A/c		2,85,000	31/03/16	By Balance C/d		7,96,250
1/7/2017	To Bank A/c		15,000
			9,50,000				9,50,000
1/4/2018	To Balance b/d		7,69,250	31/03/19	By Deprecation A/c		1,80,000
01/10/18	To Bank A/c		2,00,000	31/03/19	By Balance C/d		8,16,250
			9,96,250				9,96,250
1/4/2019	To Balance b/d		8,16,250	31/03/20	By Bank A/c		1,55,000
				31/03/20	By Profit & Loss A/c		21,250
				31/03/20	By Deprecation A/c		1,95,000
				31/03/18	By Balance C/d		4,45,000
			8,16,250				8,16,250

Dr.	DepreciationA/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/16	To Machinery A/c		30,000	31/03/16	By profit & Loss A/c		30,000
			30,000				30,000
31/03/17	To Machinery A/c		8,000	31/03/17	By profit & Loss A/c		8,000
			30,000				30,000
31/03/18	To Machinery A/c		30,000	31/03/18	By profit & Loss A/c		30,000
			30,000				30,000
31/03/19	To Machinery A/c		30,000	31/03/19	By profit & Loss A/c		30,000
			30,000				30,000
31/03/20	To Machinery A/c		30,000	31/03/20	By profit & Loss A/c		30,000
			30,000				30,000

Working Note:
(1) Annul depreciation on machinery purchases on Jan, 2016 = ₹ 1,20,000
(2) Annual depreciation on machinery purchases on July 1, 2017 = ₹ 45,000
(3) Annual depreciation on machinery purchases on oct. 1, 2018 = ₹ 30,000
(4) Book value of machinery purchases on July 1,2017 on 31st march,2020 =₹ 1,46,250
(5) Loss on sales of machinery = ₹ (1,76,250-1,55,000)= ₹ 21,250
It is all about Problem No 4 Chapter 10 of Class 11 unimax, If you have any problem please comment below.

Read out the full article to know the meaning of Depreciation

Depreciation | Meaning | Methods | Examples

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Depreciation | Meaning | Methods | Examples-in Hindi

Also, Check out the solved question of all Chapters: –

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

Part-I

• Chapter No. 1 - Introduction of Accounting
• Chapter No. 2 - Theory Base of Accounting
• Chapter No. 3 - Vouchers and Transactions
• Chapter No. 4 - Journal
• Chapter No. 5 - Goods and Services Tax (GST): An Introduction
• Chapter No. 6 - Ledger
• Chapter No. 7 - Special Purpose Book -  Cash Book
• Chapter No. 8 - Other Subsidiary Books 
• Chapter No. 9 - Trial Balance 
• Chapter No. 10 - Rectification of Errors
• Chapter No. 11 - Depreciation
• Chapter No. 12 - Provision and Reserves
• Chapter No. 13 - Bank Reconciliation Statement
• Chapter No. 14 - Bills of Exchange 

Students may choose only one part from the Part II and Part III

Part-II

• Chapter No. 15 - Financial Statements (Without Adjustments)
• Chapter No. 16 - Financial Statements (With Adjustments)
• Chapter No. 17 - Accounts from Incomplete Records -  Single Entry System

Part-III

• Chapter No. 18 - Introduction to Computers and Accounting information System
• Chapter No. 19 - Computerised Accounting
• Chapter No. 20 - Accounting Software: Tally 
• Chapter No. 21 - Data Base System
• Chapter No. 22 - Concept of Entity and Relationship