Question 20 Chapter 8 -Unimax Publication Class 12 Part 2 - 2021

Question 20 Chapter 8 - Unimax Publication Class 12 Part 2 - 2021

20.the balance in equipment account and accumulated depreciation account as on march 31,2021 and 2022 are given below:

Balance as at	March 31,2021	March 31,2022
Equipment	65,00,000	78,70,000
Accumulated depreciation	10,80,000	16,32,000

The equipment costing 12,30,000 accumulated depreciations thereon 7,18,000 was sold for 4,68,000.
Required:
(i) Compute the amount of equipment purchased, depreciation charged for the year and loss on sale of equipment.
(ii) How each of the item related to the equipment will be reported in statement of cash flow.

The solution of Question 20 Chapter 8 - Unimax Publication Class 12 Part 2-2021 : -

 Equipment Account 

Particulars	₹	Particulars	₹
To balance b/d	6,50,0000	By bank A/c (in flow) (sale)	4,68,000
To bank A/c (out flow)	2,60,0000	By accumulated depreciation A/c	7,18,000
(Balancing figure)		(dep. on equipment sold)
(Equipment purchased)		By profit and A/c	44,000
		(Loss and sale of equipment
		by balance c/d	78,70,000
	91,00,000		91,00,000

Accumulated depreciation a/c

Particulars	₹	Particulars	₹
To equipment A/c	7,18,000	By balance b/d	10,80,000
(dep. on equipment sold)
To balance c/d	16,32,000	By profit and loss, A/c (B.F)	12,70,000
	23,50,000		23,50,000

Amount of equipment purchased = 26,00,000
Treatment of items:
(a) Purchased of equipment 26,00,000 as cash used for investing activities
(b) 12,70,000 depreciations charged will be added to net profit for computing cash flow from operating activities.
(c) Loss on sale of equipment 44,000 will be added to net profit for competing cash flow from operating activities.
(d) Cash from sale of equipment 4,68,000 is used investing activities.
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Unimax Publication - Accountancy PSEB Class 12 - Volume I - Solution

• Chapter No. 1 – Accounting Not for Profit Organisations
• Chapter No. 2 – Partnership Accounts – I (Introduction)
• Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
• Chapter No. 4 – Partnership Accounts – III (Change in Profit sharing ratio among Existing Partners )
• Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
• Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
• Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Unimax Publication - Accountancy PSEB (Class 12) - Part - II - Solution

• Chapter No. 1 – Company Accounts (Share Capital)
• Chapter No. 2 – Company Accounts (Issue of Debentures)
• Chapter No. 3 – Company Accounts (Redemption of Debentures)
• Chapter No. 4 – Financial Statements of a Company
• Chapter No. 5 – Financial Statement Analysis
• Chapter No. 6 –  Tools of Financial Statement Analysis- Comparative and Common Size  
• Chapter No. 7 – Ratio Analysis
• Chapter No. 8 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2023@ Official Website of Sultan Chand Publication