Question No 32 Chapter No 14 - T.S. Grewal 11 Class

Dr.	Machinery A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/17	To Balance b/d		60,000	01/04/17	By Machinery Disposal		16,000
				31/03/18	By Balance C/d		44,000
			60,000				60,000

Dr.	Provision for Depreciation Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/17	To Machinery Disposal (4 years)		6,400	01/04/17	By Balance b/d		36,000
31/03/18	To Balance C/d		34,000	31/03/18	By Depreciation (on Machine costing Rs 44,000)		4,400
			40,400				40,400

 

Dr.	Machinery Disposal Account						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/17	To Machinery A/c		16,000	01/04/17	By Provision for Depreciation A/c		6,400
				01/04/17	By Bank A/c		8,400
				01/04/17	By Loss on sale of Machinery A/c		1,200
			16,000				16,000

 

 

Working Note:-

Statement Showing profit or loss on the sale of Machinery
Particulars	Amount
Purchase value of machinery as on 1st April 2013	16,000
Less: - Amount of Depreciation charged on the year 2013-14
16,000*10%*12/12	1,600
Amount of Depreciation charged on the year 2014-15	1,600
Amount of Depreciation charged on the year 2015-16	1,600
Amount of Depreciation charged on the year 2016-17	1,600
Book value of the asset as on 1st March 2017	9,600
Sale Price of Machinery	8,400
Loss on the sale of the asset	1,200

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Also, Check out the solved question of previous Chapters: -

• Chapter No. 1 – Introduction to Accounting
• Chapter No. 2 – Basic Accounting Terms
• Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
• Chapter No. 4 – Bases of Accounting
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book
• Chapter No. 11 – Special Purpose Books II – Other Books
• Chapter No. 12 – Bank Reconciliation Statement
• Chapter No. 13 – Trial Balance
• Chapter No. 14 – Depreciation
• Chapter No. 15 – Provisions and Reserves
• Chapter No. 16 – Accounting for Bills of Exchange
• Chapter No. 17 – Rectification of Errors
• Chapter No. 18 – Financial Statements of Sole Proprietorship
• Chapter No. 19 – Adjustments in preparation of Financial Statements
• Chapter No. 20 – Accounts from incomplete Records – Single Entry System
• Chapter No. 21 – Computers in Accounting
• Chapter No. 22 – Accounting Software – Tally
• Chapter No. 5 - Accounting Equation
• Chapter No. 6 - Accounting Procedures - Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 8 - Journal
• Chapter No. 9 - Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book

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