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Problem No 7 Chapter No 11 - Unimax Class 11
On April 01, 2019, following balance appeared in the books of M/s. Kanishka Traders: Furniture account ₹ 50,000 provision for depreciation on furniture ₹ 22,000. On October 01,2019 a part of furniture purchases for ₹ 20,000 on oct. 01, 2015 was sold for ₹ 5,000. On the same date a new furniture costing ₹ 25,000 was purchases. The depreciation was provided @ 10% p.a. on original cost of the asset and no depreciation was charged on the asset in the year of sales. Prepare furniture account and provision for depreciation account for the year ending march 31, 2020.
| Dr. | Depreciation A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/04/19 | To Balance b/d | 50,000 | 01/10/19 | By Bank A/c | 5,000 | ||
| 01/10/19 | To Bank A/c | 25,000 | 01/10/19 | By Profit & Loss A/c | 7,000 | ||
| 01/10/19 | By Provision for depreciation A/c | 8,000 | |||||
| 31/03/20 | By Balance C/d | 55,000 | |||||
| 75,000 | 75,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/10/19 | To Machinery A/c | 8,000 | 01/04/19 | By Balance b/d | 22,000 | ||
| 31/03/19 | By Balance C/d | 20,250 | 01/04/19 | By Depreciation A/c | 6,250 | ||
| 28,250 | 28,250 | ||||||
(1) Book value of Machinery purchased on Oct. 1,2015 on Oct. 1, 2019= ₹ 12,000.
(2) Loss on sale of Machinery = ₹ (12000-5,000) = ₹ 7,000.
(3) Depreciation on new machinery purchased on 1st oct., 2019 = ₹ 1,250.
It is all about Problem No 7 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
https://tutorstips.com/depreciation/
Also, Check out the same article in Hindi from the following link
Depreciation | Meaning | Methods | Examples-in Hindi
Also, Check out the solved question of all Chapters: –
Part-I
Students may choose only one part from the Part II and Part III
Part-II
Part-III
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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