Question 13 Chapter 11 – Unimax Publications of Class 11

Question 13 Chapter 11 – Unimax Publications of Class 11

The original cost of machinery amount to ₹ 4,000 and it is decided to write off 5% on the Diminishing value of asset as depreciation at the end of each year.
Prepare the ledger account as it will appear during first four years.

The solution of Question 13 Chapter 11 – Unimax Publications of Class 11

Dr.	Machine A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/20	To Balance b/d		20,000	31/12/20	By Deprecation A/c		2000
				31/12/20	By Balance C/d		18,000
			20,000				20,000
01/01/21	To Balance b/d		18,000	31/12/21	By Deprecation A/c		2,300
01/07/21	To Bank A/c		10,000	31/12/21	By Balance C/d		25,700
			28,000				28,000
01/01/22	To Balance b/d		25,700	31/12/22	By Deprecation A/c		3,070
01/01/22	To Bank A/c		5,000	31/12/22	By Balance C/d		27,630
			30,700				30,700

Working Notes:
(1) Depreciation on machinery purchased on Jan.1,2017 dep. On Dec.31,2017 = ₹ 2,000.
Dep. On Dec. 31,2018 = ₹ 1,800
Dep. On Dec. 31,2019 = ₹ 1,620
(2) Depreciation on machinery purchased on July 1,2018:
Dep. On Dec. 31,2018 = ₹ 500
Dep. On Dec. 31,2019 = ₹ 950
(3) Depreciation on machinery purchased on Jan. 1,2019. Dep. On Jan. 1,2019 = ₹ 500