Question 4 Chapter 11 – Unimax Publications of Class 11

Question 4 Chapter 11 – Unimax Publications of Class 11

A company purchases a plant for ₹ 31,000 on January 1,2019. If further spent ₹ 1400 on its installation. It was brought into use from 1st May,2019. You are required to prepare plant account and depreciation account for the first four years when rate of depreciation is 10% p.a. on straight line method.

The solution of Question 4 Chapter 11 – Unimax Publications of Class 11

Dr.	Machine A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/01/16	To Bank A/c		31,000	31-12-2016	By Deprecation A/c		2,160
01/05/16	To Bank A/c (installation cost)		1,400	31-12-2016	By Balance C/d		30,240
			32,400				32,400
01/01/17	To Balance A/c		30,240	31-12-2017	By Deprecation A/c		3,240
				31-12-2017	By Balance C/d		27,000
			30,240				30,240
01/01/18	To Balance b/d		27,000	31-12-2018	By Deprecation A/c		240
				31-12-2018	By Balance C/d		56,250
			27,216				27,216
01/01/19	To Balance b/d		23,760	31-12-2019	By Deprecation A/c		3,240
				31-12-2019	By Balance C/d		20,520
			23,760				23,760