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Question No 21 Chapter No 11 - Unimax Class 11
The following balance appear in the books of Gupta Ltd.
Machinery A/c as on 1.4.2019 = ₹ 8,00,000povision for depreciation as on 1.4.2019 = ₹ 3,10,000
On 1.7.2019 a machinery which was purchased on 1.4.2017 for ₹ 1,20,000 was sold for ₹ 50,000 and on the same date anther machinery was purchased was purchased for ₹ 32,000. The firms charges depreciation @ 15% p.a. on original method and closed its books on 31st March every year. Prepare the ‘Machinery A/c’ and ‘ Provision for depreciation A/c’ for the year 2019-2020.
Show your working clearly. Also give the journal entries for the sale of machinery.
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/04/19 | To Balance b/d | 8,00,000 | 01/07/19 | By Provision for Deprecation A/c | 40,500 | ||
| 01/07/19 | To Bank A/c | 32,000 | 01/07/19 | By Bank A/c | 50,000 | ||
| 01/07/19 | By Profit & Loss A/c | 29,500 | |||||
| 31/03/20 | By Balance C/d | 7,21,000 | |||||
| 8,32,000 | 8,32,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/07/19 | To Machinery A/c | 40,500 | 01/04/19 | To Balance b/d | 3,10,000 | ||
| 31/03/20 | To Balance c/d | 3,79,600 | 31/03/20 | By Depreciation A/c | 1,10,100 | ||
| 4,20,100 | 4,20,100 | ||||||
Working Note:
(1) Book value of machinery sold on July 1,2019 = ₹ 79,500.
(2) Loss on sale of machinery = ₹ (79,500-50,000) = ₹ 29,500.
It is all about Question No 21 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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