Question 23 Chapter 11 – Unimax Publications of Class 11

Question 23 Chapter 11 – Unimax Publications of Class 11

23. (with GST). ABC Ltd. Purchased on 1st April,2018 a plant for ₹ 1,00,000 plus CGST And SGST @ 6% each. On 1st October 2018, an additional plant was purchased costing ₹ 50,000 plus CGST and SGST @ 6% each. On 1st October 2019 and the plant purchased on 1st April 2018 having become obsolete was sold for ₹ 40,000, charging CGST and SGST @ 6% each. Depreciation is provided @ 10% p.a. on cost on 31st March every year. Show the machinery, Machinery Disposal, and Provision for depreciation accounts for the years ended 31st March 2019 and 2020. Also show CGST and SGST account for the two years.

The solution of Question 23 Chapter 11 – Unimax Publications of Class 11

Dr.	Machinery A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/18	To Bank A/c (machine 1)		1,00,000	31/03/19	By Balance c/d		1,50,000
01/10/18	To Bank A/c (machine 2)		50,000
			1,50,000				1,50,000
01/04/19	To Balance b/d		1,50,000	01/10/19	By Machine disposal A/c		1,00,000
				31/03/20	By Balance C/d		50,000
			1,50,000				1,50,000
01/04/20	To Balance b/d		50,000

Dr.	Provision for depreciation A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/19	To Balance c/d		12,500	31/03/19	By Depreciation (machine 1) A/c		10,000
				31/03/19	By Depreciation (machine 2) A/c		2,500
			12,500				12,500
01/10/19	To Machine disposal A/c		15,000	01/04/19	By Balance b/d		12,500
31/12/20	To Balance c/d		7,500	01/10/19	By Depreciation (machine 1) A/c		5,000
				31/03/20	By Depreciation (machine 2) A/c		5,000
			22,500				22,500

Dr.	Machine disposal A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/10/19	To Machinery A/c		1,00,000	01/10/19	By Provision for		15,000
				01/10/19	By Bank A/c		40,000
				01/10/19	By Profit & Loss A/c		45,000
			1,00,000				1,00,000
Dr.		Input CGST A/c					Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/18	To Bank A/c		6,000	31/03/19	By Balance c/d		9,000
01/10/18	To Bank A/c		3,000
			9,000				9,000
Dr.		Input SGST A/c					Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/18	To Bank A/c		6,000	31/03/19	By Balance c/d		9,000
01/10/18	To Bank A/c		3,000
			9,000				9,000
Dr.		Output CGST A/c					Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/20	To Balance c/d		2,400	01/10/19	By Bank A/c		2,400
			2,400				2,400
Dr.		Output SGST A/c					Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
31/03/20	To Balance c/d		2,400	01/10/19	By Bank A/c		2,400
			2,400				2,400