Question No 7 Chapter No 11 - Unimax 11 Class

Question No 7 Chapter No 11 - Unimax Class 11

A company purchased a small plant on 1st April,2017 for ₹ 45,000. On 1st Oct., 2017 additional plant was purchased costing ₹ 22,500. On 1st Oct., 2018 plant purchased on 1st April, 2017 was sold for ₹ 18,000. On 1st Oct., 2019 a new plant was purchased for ₹ 54,000 and plant purchased on 1st Oct., 2017 was sold for ₹ 18,900. Depreciation is Provid @ 10% p.a. on straight line method every year on 31st March. Prepare the Machinery account up to 31st March,2020.

The solution of Question No 7 Chapter No 11 -

Dr.	Machine A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/04/17	To Bank A/c		45,000	31/03/18	By Deprecation A/c		5,625
01/10/17	To Bank A/c		22,500	31/03/18	By Balance C/d		61,875
			67,500				67,500
01/04/18	To Balance b/d		61,875	01/10/18	By Bank A/c		18,000
				01/10/18	By Profit & Loss A/c		20,250
				31/03/19	By Deprecation A/c		4,500
				31/03/19	By Balance C/d		19,125
			61,875				61,875
01/04/19	To Balance b/d		19,125	01/10/19	By Bank A/c		18,900
01/10/19	To Bank A/c		54,000	01/10/19	By Depreciation A/c		3,825
01/10/19	To Profit & Loss A/c		900	31/03/20	By Balance c/d		51,300
			74,025				74,025

Working Note:
(1) Annul depreciation on machinery purchases on apr.1, 2017 = ₹ 4,500.
(2) Loss on sale of first machinery = ₹ (38,250-18,000) = ₹ 20,250.
(3) Annual depreciation on second machinery purchases = ₹ 2,250.
(4) Profit on sale of Machinery = (18,900-18,000) = ₹ 900.
(5) Book value of third machinery purchased = ₹ 5,400.
It is all about Question No 7 Chapter 11 of Class 11 unimax, If you have any problem please comment below.

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Depreciation | Meaning | Methods | Examples

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Depreciation | Meaning | Methods | Examples-in Hindi