Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Question No 9 Chapter No 14
9. On 1st July 2015 A Co., Ltd. Purchases second-hand machinery for Rs 20,000 and spends Rs 30,000 on reconditioning and installing it. On 1st January 2016, the firm purchases new machinery worth Rs 12,000. on 30th June 2017, the machinery purchased on 1st January 2016 was sold for Rs 8,000 and on 1st July, a fresh Plant was installed payment for this plant was to be made as follows:
1st July 2017 Rs 5,000
30th Jun 2018 Rs 6,000
03rd June 2019 Rs 5,500
Payment in 2018 and 2019 include the interest of Rs 1,000 and RS 500 respectively.
The Company writes off 10 p.a. on the original cost. The account closed every year on 31st March. Show the Machinery account for the year ended 31st March 2018.
The solution of Question No 9 Chapter No 14: -
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
|---|---|---|---|---|---|---|---|
| 01/7/15 | To Cash A/c | 23,000 | 31/03/15 | By Deprecation A/c *1 | 2,025 | ||
| 01/1/16 | To Cash A/c | 12,000 | 31/03/15 | By Balance C/d | 32,975 | ||
| 35,000 | 35,000 | ||||||
| 01/04/16 | To Balance b/d | 32,975 |
31/03/17 | By Deprecation A/c *2 | 3,500 | ||
| 31/03/17 | By Balance C/d | 29,475 |
|||||
| 32,975 |
32,975 |
||||||
| 01/04/17 | To Balance b/d | 29,475 | 30/6/17 | By Cash A/c | 8,000 | ||
| 01/07/17 | To Cash A/c | 15,000 | 30/6/17 | By Deprecation A/c | 300 | ||
| 30/6/17 | By loss on the sale of van A/c | 2,200 | |||||
| 30/3/18 | By Deprecation A/c*3 | 3,425 | |||||
| 30/3/18 | By Balance C/d | 30,550 |
|||||
| 51,750 |
51,750 | ||||||
Working note:-
*1:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 23,000
Rate of Depreciation = 10%
Period = from 01/07/15 to 31/03/16 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
=23,000 X 10/100 X 9/12
Depreciation =1,725
Purchased 1st January 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 12,000
Rate of Depreciation = 10%
Period = from 01/1/15 to 31/03/16 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 12,000 X 10/100 X 3/12
Depreciation = 300
Total Depreciation for the finical year 2014-15 =2,025
*2:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st July 2014
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 23,000
Rate of Depreciation = 10%
Period = from 01/04/15 to 31/03/16 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=23,000 X 10/100 X 12/12
Depreciation = 2,300
Purchased 1st January 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 15,000
Rate of Depreciation = 10%
Period = from 01/7/15 to 31/03/16 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 15,000 X 10/100 X 9/12
Depreciation = 1,125
Total Depreciation for the finical year 2015-16=3,425
| Statement Showing profit or loss on the sale of Machinery | Cr. |
| Particulars |
Amount |
|---|---|
| Book value of machinery as on 1st June 2015 when it was purchased | 12,000 |
| Less: - Amount of Depreciation charged on the year 2015-16 | |
| 12,000*10%*3/12 | 300 |
| Amount of Depreciation charged on the year 2016-17 | 1,200 |
| Amount of Depreciation charged on the year 2017-18 | |
| 12,000*10%*3/12 | 300 |
| Sale Price of Machinery | 8,000 |
| Loss on the sale of the asset | 2,200 |
https://tutorstips.com/depreciation/
Thanks, Please Like and share with your friends
Comment if you have any question.
Also, Check out the solved question of previous Chapters: -
Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication
T.S. Grewal's Double Entry Book Keeping
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.
This guide covers "Question No 9 Chapter No 14 - T.S. Grewal 11 Class", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 11 Class Financial Accounting.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Question No 9 Chapter No 14 - T.S. Grewal 11 Class" instantly.
