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Question No 20 Chapter No 11 - Unimax Class 11
On 1st Jan., 2017 a company purchased a machinery for ₹ 10,000. It spent ₹ 2,000 on its erection. On 1st July,2017 it purchased another machinery for ₹ 4,000. On 1st Jan., 2019 the machinery purchased on 1st Jan. 2017 ₹ was sold for ₹ 4,600. The company writes on depreciation a 10% p.a. on the diminishing balance method. Prepare machinery account for three years ending 31st Dec., 2019.
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/04/17 | To Bank A/c | 10,000 | 31/12/17 | By Deprecation A/c | 1,400 | ||
| 01/10/17 | To Bank A/c | 2,000 | 31/12/17 | By Balance C/d | 14,600 | ||
| 01/10/17 | To Bank A/c | 4,000 | |||||
| 16,000 | 16,000 | ||||||
| 01/01/18 | To Balance b/d | 14,600 | 31/12/18 | By Deprecation A/c | 1,460 | ||
| 31/12/18 | By Balance C/d | 13,140 | |||||
| 14,600 | 14,600 | ||||||
| 01/01/19 | To Balance b/d | 13,140 | 31/10/19 | By Bank A/c | 4,600 | ||
| 31/10/19 | By Profit & Loss A/c | 5,120 | |||||
| 31/12/19 | By Deprecation A/c | 342 | |||||
| 31/12/19 | By Balance C/d | 3,078 | |||||
| 13,140 | 13,140 | ||||||
Working Note:
(1) Depreciation on machinery purchased on Jan. 2017:
Dep. On 31/12/2017 = ₹ 1,200.
Dep. On 31/12/2018 = ₹ 1,080.
(2) Book value of machinery purchased on Jan.1,2017 at, date Jan.1,2019 ₹ = 9,720.
(3) Loss on sale machinery = ₹ (9,720-4,600) = ₹ 5,120.
(4) Depreciation on machinery purchased on July 1,2017:
Dep. On 31/12/2017 = ₹ 200
Dep. On 31/12/2018 = ₹ 380
Dep. On 31/12/2019 = ₹ 342
It is all about Question No 20 Chapter 11 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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