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

Question No 32 Chapter No 14

Question No 32 Chapter No 14

32. Following balances appear in the books of M/s. Amrit as on 1st April 2017:

2017   Rs
1srt April Machinery A/c 60,000
  Provision for Depreciation A/c 36,000

On 1st April 2017, they decided to dispose of machinery for ₹ 8,400 which was purchased on 1st April 2013 for ₹ 16,000.You are required to prepare the Machinery A/c, Provision for Depreciation A/c and Machinery Disposal A/c for the year ended 31st March 2018. Depreciation was charged at 10% on Cost following SLM.


The solution of Question No 32 Chapter No 14: –

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





Depreciation | Meaning | Methods | Examples

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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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 32 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 31 Chapter No 14 – T.S. Grewal 11 Class

Question No 31 Chapter No 14

Question No 31 Chapter No 14

31. Shakti Cements purchased on 1st April, 2015 a plant for ₹ 80,000. On 1st July, 2016, it purchased additional plant costing ₹ 48,000. On 1st December, 2017, the plant purchased on 1st April, 2015 was sold for ₹ 42,000 plus IGST @ 12% and on the same date a fresh plant was purchased for ₹ 75,000 plus CGST and SGST @ 6% each. Depreciation is provided at 10% p.a. on the Diminishing Balance Method. Accounts are closed on 31st March each year. Show the plant Account for 3 years (along with working notes).


The solution of Question No 31 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Bank A/c   80,000 31/03/16 By Deprecation A/c   8,000
        31/03/16 By Balance C/d   72,000
      80,000       80,000
01/04/16 To Balance b/d   72,000 31/03/17 By Deprecation A/c*1   10,800
01/07/16 To Bank A/c   48,000 31/03/17 By Balance C/d   1,09,200
      1,20,000       1,20,000
01/04/17 To Balance b/d   1,09,200 01/12/17 By Deprecation A/c   4,320
01/12/17 To Bank A/c   75,000 01/12/17 By Bank A/c   42,000
        01/12/17 By Loss on sale of Machine A/c   18,480
        31/03/18 By Deprecation A/c*2   6,940
        31/03/18 By Balance C/d   1,12,460
      1,84,200
      1,84,200

 

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2016-17
 Purchased on 1st April 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 72,000
Rate of Depreciation = 10%
Period = from 01/04/2015 to 31/03/2016 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=72,000 X10/100 X 12/12
Depreciation =7,200
Purchased on 1st July 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 48,000
Rate of Depreciation = 10%
Period = from 01/07/2016 to 31/03/2017 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=48,000 X10/100 X 12/12
Depreciation = 3,600
Total Depreciation for the year = 10,800

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st April 2015 80,000
Less: – Amount of Depreciation charged on the year 2015-16  
80,000*10%*12/12 8,000
 Amount of Depreciation charged on the year 2016-17  
72,000*10%*12/12 7,200
 Amount of Depreciation charged on the year 2017-18  
64,800*10%*8/12 4,320
Book value of the asset as on 1st March 2017 62,480
Sale Price of Machinery 42,000
Loss on the sale of the asset 18,480

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Purchased on 1st July 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 44,400
Rate of Depreciation = 10%
Period = from 01/04/2010 to 31/03/2011 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=44,400 X10/100 X 12/12
Depreciation = 4,440
Purchased on 1st December 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 75,000
Rate of Depreciation = 10%
Period = from 01/12/2017 to 31/03/2018 i.e.4months
(from the date of purchase/Beginning balance to the end of the financial year)
=75,000 X10/100 X 4/12
Depreciation = 2,500
Total Depreciation for the year = 6,940


Depreciation | Meaning | Methods | Examples

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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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 31 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 30 Chapter No 14 – T.S. Grewal 11 Class

Question No 30 Chapter No 14

Question No 30 Chapter No 14

30. A firm purchased on 1st April 2015 certain machinery for ₹ 5,82,000 and spent ₹ 18,000 on its installation. On 1st October 2015, additional machinery costing ₹ 2,00,000 was purchased. On 1st October 2017, the machinery purchased on 1st April 2015 was auctioned for ₹ 2,86,000 plus CGST and SGST @ 6% each and new machinery for ₹ 4,00,000, plus IGST @ 12% was purchased on the same date. Depreciation was provided annually on 31st March at the rate of 10% p.a. on the Written Down Value Method. Prepare the Machinery Account for the three years ended 31st March 2018.


The solution of Question No 30 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Bank A/c   6,00,000 31/03/16 By Deprecation A/c*1   70,000
01/10/15 To Bank A/c   2,00,000 31/03/16 By Balance C/d   7,30,000
      8,00,000       8,00,000
01/04/16 To Balance b/d   7,30,000 31/03/17 By Deprecation A/c*2   42,500
        31/03/17 By Balance C/d   6,57,000
      7,30,000       7,30,000
01/04/17 To Balance b/d   6,57,000 01/10/17 By Deprecation A/c   24,300
01/10/17 To Bank A/c   4,00,000 01/10/17 By Bank A/c   2,86,000
        01/10/17 By Loss on sale of Machine A/c   1,75,700
        31/03/18 By Deprecation A/c*3   37,100
        31/03/18 By Balance C/d   5,33,900
      10,57,000
      10,57,000

 

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2015-16
 Purchased on 1st April 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 6,00,000
Rate of Depreciation = 10%
Period = from 01/04/2015 to 31/03/2016 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=6,00,000 X10/100 X 12/12
Depreciation =60,000
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/10/2015 to 31/03/2016 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 12/12
Depreciation = 10,000
Total Depreciation for the year = 70,000



*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
 Purchased on 1st April,2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 5,40,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=5,40,000 X10/100 X 12/12
Depreciation = 54,000
 Purchased on 1st October,2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,90,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,90,000 X10/100 X 12/12
Depreciation = 19,000
Total Depreciation for the year = 73,000


Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st April 2015 6,00,000
Less: – Amount of Depreciation charged on the year 2015-16  
6,00,000*10%*12/12 60,000
 Amount of Depreciation charged on the year 2016-17  
5,40,000*10%*12/12 54,000
 Amount of Depreciation charged on the year 2017-18  
4,86,000*10%*6/12 24,300
Book value of the asset as on 1st March 2017 4,61,700
Sale Price of Machinery 2,86,000
Loss on the sale of the asset 1,75,700

*3:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,71,000
Rate of Depreciation = 10%
Period = from 01/04/2010 to 31/03/2011 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,71,000 X10/100 X 12/12
Depreciation = 17,100
Purchased on 1st October 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/10/2017 to 31/03/2018 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=4,00,000 X10/100 X 6/12
Depreciation = 20,000
Total Depreciation for the year = 37,100



Depreciation | Meaning | Methods | Examples

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Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 30 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 29 Chapter No 14 – T.S. Grewal 11 Class

Question No 29 Chapter No 14

Question No 29 Chapter No 14

29. Astha Engineering Works purchased a machine on 1st July 2015 for ₹ 1,80,000 and spent ₹ 20,000 on its installation.On 1st April 2016, if purchased another machine for ₹ 2,40,000. On 1st October 2017, the machine purchased on 1st July 2015 was sold for ₹ 1,45,000. On 1st January 2018, another machine was purchased for ₹ 4,00,000 plus IGST @ 12%.Prepare the Machinery Account for the years ended 31st March 2016 to 2018 after charging Depreciation @ 10% p.a. by Diminishing Balance Method.Accounts are closed on 31st March every year.


The solution of Question No 29 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/07/15 To Bank A/c   2,00,000 31/03/16 By Deprecation A/c*1   15,000
        31/03/16 By Balance C/d   1,85,000
      2,00,000       2,00,000
01/04/16 To Balance b/d   1,85,000 31/03/17 By Deprecation A/c*2   42,500
01/04/16 To Bank A/c   2,40,000 31/03/17 By Balance C/d   3,82,500
      4,25,000       4,25,000
01/04/17 To Balance b/d   3,82,500 01/10/17 By Deprecation A/c   8,325
01/01/18 To Bank A/c   4,00,000 01/10/17 By Bank A/c   1,45,000
        01/10/17 By Loss on sale of Machine A/c   13,175
        31/03/18 By Deprecation A/c*3   31,600
        31/03/18 By Balance C/d   5,84,400
      7,82,500
      7,82,500

 

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2015-16
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/07/2010 to 31/03/2011 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 9/12
Depreciation =15,000
Total Depreciation for the year = 15,000


*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,85,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 12/12
Depreciation = 18,500
Purchased on 1st April 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,40,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,40,000 X10/100 X 12/12
Depreciation = 24,000
Total Depreciation for the year = 42,500

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st July 2015 2,00,000
Less: – Amount of Depreciation charged on the year 2015-16  
2,00,000*10%*9/12 15,000
 Amount of Depreciation charged on the year 2016-17  
1,85,000*10%*12/12 18,500
 Amount of Depreciation charged on the year 2017-18  
1,66,500*10%*6/12 8,325
Book value of the asset as on 1st March 2017 1,58,175
Sale Price of Machinery 1,45,000
Loss on the sale of the asset 13,175

*3:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Purchased on 1st April 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,16,000
Rate of Depreciation = 10%
Period = from 01/04/2010 to 31/03/2011 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,16,000 X10/100 X 12/12
Depreciation = 21,600
Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e.3months
(from the date of purchase/Beginning balance to the end of the financial year)
=4,00,000 X10/100 X 3/12
Depreciation = 10,000
Total Depreciation for the year = 31,600


Depreciation | Meaning | Methods | Examples

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Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 29 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 28 Chapter No 14 – T.S. Grewal 11 Class

Question No 28 Chapter No 14

Question No 28 Chapter No 14

28. On 1st October 2010, Meenal Sharma bought a machine for ₹ 25,000 on which he spent ₹ 5,000 for carriage and freight; ₹ 1,000 for the brokerage of the middle-man, ₹ 4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March 2013, the machine was sold to Deepa for ₹ 30,500 and ₹ 500 was paid as commission to a broker through whom the sales were effected. Find out the profit or loss on the sale of the machine if accounts are closed on 31st March, every year.


The solution of Question No 28 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/10/10 To Bank A/c   35,000 31/03/11 By Deprecation A/c*1   1,750
        31/03/11 By Balance C/d   33,250
      35,000       35,000
01/04/11 To Balance b/d   33,250 31/03/12 By Deprecation A/c   3,325
        31/03/12 By Balance C/d   29,925
      33,250       33,250
01/04/12 To Balance b/d   29,925 31/03/13 By Deprecation A/c   2,993
01/03/13 To profit on sale on machine A/c   3,068 31/03/13 By Bank A/c (30,500-500)   30,000
      32,993
      32,993

Working Note:-`

*1:- Calculation of the amount of Depreciation on furniture for the year 2010-11
Purchased on 1st October 2010
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 35,000
Rate of Depreciation = 10%
Period = from 01/10/2010 to 31/03/2011 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=35,000 X10/100 X 9/12
Depreciation =1,750
Total Depreciation for the year = 1,750


Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st October 2010 35,000
Less: – Amount of Depreciation charged on the year 2010-11  
35,000*10%*6/12 1,750
 Amount of Depreciation charged on the year 2011-12  
33,250*10%*12/12 3,325
Amount of Depreciation charged on the year 2012-13  
29,925*10%*12/12 2,993
Add: commission paid 500
Book value of the asset as on 1st March 2017 27,432
Sale Price of Machinery 30,500
Profit on the sale of the asset 3,068



Depreciation | Meaning | Methods | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 28 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 27 Chapter No 14 – T.S. Grewal 11 Class

Question No 27 Chapter No 14

Question No 27 Chapter No 14

27. A company purchased on 1st July 2015 machinery costing ₹ 30,000. It further purchased machinery on 1st January 2016 costing ₹ 20,000 and on 1st October 2016 costing ₹ 10,000. On 1st April 2017, one-third of the machinery installed on 1st July 2015 became obsolete and was sold for ₹ 3,000. The company follows the financial year as the accounting year.Show how the Machinery Account would appear in the books of the company if depreciation is charged @ 10% p.a. on Written Down Value Method.


The solution of Question No 27 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/07/15 To Bank A/c   30,000 31/03/16 By Deprecation A/c*1   2,750
01/07/15 To Bank A/c   20,000 31/03/16 By Balance C/d   47,250 
      50,000       50,000
01/04/16 To Balance b/d   47,250 31/03/17 By Deprecation A/c*2   5,225
01/10/16 To Bank A/c   10,000 31/03/17 By Balance C/d   52,025
      57,250       57,250
01/04/17 To Balance b/d   52,525 31/01/17 By Bank A/c   3,000
        31/01/17 By Loss on sale of Machinery A/c   5,325
        31/03/18 By Deprecation A/c*3   4,370
        31/03/18 By Balance C/d   39,330
      52,025
      52,025

Working Note:-`

*1:- Calculation of the amount of  Depreciation on furniture for the year 2015-16
Purchased on 1st July 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 30,000
Rate of Depreciation = 10%
Period = from 01/07/2015 to 31/03/2016 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=30,000 X10/100 X 9/12
Depreciation =2,250
Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 20,000
Rate of Depreciation = 10%
Period = from 01/01/2016 to 31/03/2016 i.e.2months
(from the date of purchase/Beginning balance to the end of the financial year)
=20,000 X10/100 X 3/12
Depreciation = 500
Total Depreciation for the year = 2,750

*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 27,750
Rate of Depreciation = 10%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=30,000 X10/100 X 12/12
Depreciation = 2,775
Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 19,500
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.2months
(from the date of purchase/Beginning balance to the end of the financial year)
=20,000 X10/100 X 12/12
Depreciation = 1,950

Purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,000
Rate of Depreciation = 10%
Period = from 01/10/2016 to 31/03/2017 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=10,000 X10/100 X 6/12
Depreciation =500
Total Depreciation for the year = 5,225

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st October 2015 (30,000 *1/3) out of which 1/4 sold 10,000
Less: – Amount of Depreciation charged on the year 2015-16  
10,000*10%*9/12 750
 Amount of Depreciation charged on the year 2016-17  
9,250*10%*12/12 925
Book value of the asset as on 1st March 2017 8,325
Sale Price of Machinery 3,000
Loss on the sale of the asset 5,325

 

*3:- Calculation of the amount of Depreciation on furniture for the year 2017-18
 Purchased on 1st July 2015(2/3)

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 16,650
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=16,650 X10/100 X 12/12
Depreciation = 1,665
Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 17,550
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e.2months
(from the date of purchase/Beginning balance to the end of the financial year)
=17,550 X10/100 X 12/12
Depreciation = 1,755
Purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 9,500
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=9,500 X10/100 X 6/12
Depreciation = 950
Total Depreciation for the year = 4,370

Depreciation | Meaning | Methods | Examples

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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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T.S. Grewals Double Entry Book Keeping - Question No 27 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 26 Chapter No 14 – T.S. Grewal 11 Class

Question No 26 Chapter No 14

Question No 26 Chapter No 14

26.M/s. P & Q purchased machinery for ₹ 40,000 on 1st October 2015. Depreciation is provided @ 10% p.a. on the Diminishing Balance. On 31st January 2018, one-fourth of the machinery was found unsuitable and disposed of for ₹ 5,600. On the same date, new machinery at a cost of ₹ 15,000 was purchased. Write up the Machinery account for the years ended 31st March 2016, 2017 and 2018. Accounts are closed on 31st March each year.


The solution of Question No 26 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/10/15 To Bank A/c   40,000 31/03/16 By Deprecation A/c   2,000
        31/03/16 By Balance C/d   38,000
      40,000       40,000
01/04/16 To Balance b/d   38,000 31/03/17 By Deprecation A/c   3,800
        31/03/17 By Balance C/d   34,200
      38,000       38,000
01/04/17 To Balance b/d   34,200 31/01/18 By Deprecation A/c   713
31/01/18 To Bank A/c   15,000 31/01/18 By Bank A/c   5,600
        31/01/18 By Loss on sale of Machinery A/c   2,237
        31/03/18 By Deprecation A/c*1   2,815
        31/03/18 By Balance C/d   37,835
      49,200
      49,200

Working Note:-`

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
The purchase value of machinery as on 1st October 2015 (40,000*1/4) out of which 1/4 sold 10,000
Less: – Amount of Depreciation charged on the year 2015-16  
10,000*10%*6/12 500
 Amount of Depreciation charged on the year 2016-17  
9,500*10%*12/12 950
 Amount of Depreciation charged on the year 2017-18  
8,550*10%*10/12 713
Book value of the asset as on 1st April 2018 7,877
Sale Price of Machinery 5,600
Loss on the sale of the asset 2,237

 

*1:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 25,650
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=25,650 X10/100 X 12/12

Depreciation 2,565

Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 15,000
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e.2months
(from the date of purchase/Beginning balance to the end of the financial year)
=15,000 X10/100 X 12/12

Depreciation 250
Total Depreciation for the year 2,815

 

Depreciation | Meaning | Methods | Examples

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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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T.S. Grewals Double Entry Book Keeping - Question No 26 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 25 Chapter No 14 – T.S. Grewal 11 Class

Question No 25 Chapter No 14

Question No 25 Chapter No 14

25. A Machinery was purchased for ₹ 1,80,000 on 1st July, 2015. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2017 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2016 to 2018, if the books are closed on 31st March every year.


The solution of Question No 25 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/07/15 To Bank A/c   1,80,000 31/03/16 By Deprecation A/c*1   13,500
        31/03/16 By Balance C/d   1,66,500
      1,80,000       1,80,000
01/04/16 To Balance b/d   1,66,500 31/03/17 By Deprecation A/c   16,650
        31/03/17 By Balance C/d   1,49,850
      1,66,500       1,66,500
01/04/17 To Balance b/d   1,49,850 31/10/17 By Deprecation A/c   1,873
01/10/17 To Profit on sale of Machinery A/c   410 31/10/17 By Bank A/c   36,000
        31/03/18 By Deprecation A/c*2   11,239
        31/03/18 By Balance C/d   1,01,148
      1,50,260
      1,50,260

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,80,000
Rate of Depreciation = 10%
Period = from 01/07/2016 to 31/03/2017 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,80,000 X10/100 X 9/12
Depreciation =13,500
Total Depreciation for the year = 2,300

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
The purchase value of machinery as on 1st July 2015 (1,80,000 *1/4) out of which 1/4 sold 45,000
Less: – Amount of Depreciation charged on the year 2015-16  
45,000*10%*9/12 3,375
 Amount of Depreciation charged on the year 2016-17  
41,625*10%*12/12 4,162
 Amount of Depreciation charged on the year 2017-18  
37,463*10%*6/12 1,873
Book value of the asset as on 1st April 2018 35,590
Sale Price of Machinery 36,000
Profit on the sale of the asset 410

 

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,12,388
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,12,388 X10/100 X 12/12

Depreciation 11,239
Total Depreciation for the year 11,239

 

Depreciation | Meaning | Methods | Examples

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Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 25 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 24 Chapter No 14 – T.S. Grewal 11 Class

Question No 24 Chapter No 14

Question No 24 Chapter No 14

24. On 1st April 2015, machinery was purchased for ₹ 20,000. On 1st October 2016, another machine was purchased for ₹ 10,000 and on 1st April 2017, one more machine was purchased for ₹ 5,000. The firm depreciates its machinery @ 10% p.a. on the Diminishing Balance Method.What is the amount of Depreciation for the years ended 31st March 2016; 2017 and 2018? What will be the balance in Machinery Account as on 31st March 2018?


The solution of Question No 24 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Bank A/c   20,000 31/03/16 By Deprecation A/c   2,000
        31/03/16 By Balance C/d   18,000
      20,000       20,000
01/04/16 To Balance b/d   18,000 31/03/17 By Deprecation A/c*1   2,300
01/10/16 To Bank A/c   10,000 31/03/17 By Balance C/d   25,700
      28,000       28,000
01/04/17 To Balance b/d   25,700 31/03/18 By Deprecation A/c*2   3,070
01/04/17 To Bank A/c   5,000        
        31/03/18 By Balance C/d   27,630
      30,700
      30,700

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 18,000
Rate of Depreciation = 10%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=18,000 X1 5/100 X 12/12
Depreciation =1,800
Purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,000
Rate of Depreciation = 10%
Period = from 01/12/2016 to 31/03/2017 i.e.4months
(from the date of purchase/Beginning balance to the end of the financial year)
=10,000 X 10/100 X 6/12
Depreciation = 500
Total Depreciation for the year =2,300

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 16,200
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=16,200 X10/100 X 12/12

Depreciation 1,620

 purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 9,500
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e.12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=9,500 X 15/100 X 4/12

Depreciation 950

purchased on 1st April 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 5,000
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=5,000 X10/100 X 12/12

Depreciation 500
Total Depreciation for the year 3,070

 

Depreciation | Meaning | Methods | Examples

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Comment if you have any question.

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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 24 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Question No 23 Chapter No 14 – T.S. Grewal 11 Class

Question No 23 Chapter No 14Question No 23 Chapter No 14

Question No 23 Chapter No 14

23. A company purchased machinery for ₹ 50,000 on 1st October 2015. Another machinery costing ₹10,000 was purchased on 1st December 2016. On 31st March 2018, the machinery purchased in 2015 was sold at a loss of ₹ 5,000. The company charges depreciation @ 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare the Machinery Account for 3 years.


The solution of Question No 23 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/10/15 To Bank A/c   50,000 31/03/16 By Deprecation A/c*1   3,500
        31/03/16 By Balance C/d   46,250
      50,000       50,000
01/04/16 To Balance b/d   31,500 31/03/17 By Deprecation A/c*2   7,438
01/12/16 To Bank A/c   10,000 31/03/17 By Balance C/d   48,812
      56,250       56,250
01/04/17 To Balance b/d   48,812 31/03/18 By Deprecation A/c*3   7,322
        31/03/18 By Bank A/c   28,415
        31/03/18 By loss on the sale of the Machinery   5,000
        31/03/18 By Balance C/d   8,075
      48,812
      48,812

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 50,000
Rate of Depreciation = 15%
Period = from 01/10/2015 to 31/03/2016 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=50,000 X1 5/100 X 6/12
Depreciation =3,750
Total Depreciation for the year =3,750

*2:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 46,250
Rate of Depreciation = 15%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=46,250 X1 5/100 X 12/12

Depreciation 6,938

Purchased on 1st December 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,000
Rate of Depreciation = 15%
Period = from 01/12/2016 to 31/03/2017 i.e.4months
(from the date of purchase/Beginning balance to the end of the financial year)
=10,000 X1 5/100 X 4/12

Depreciation 500
Total Depreciation for the year 7,438

*3:- Calculation of the amount of Depreciation on furniture for the year 2017-18

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 39,315
Rate of Depreciation = 15%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=39,315 X1 5/100 X 12/12

Depreciation 5,897

Purchased on 1st December 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 9,500
Rate of Depreciation = 15%
Period = from 01/06/2017 to 31/03/2018 i.e.12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=9,500 X 15/100 X 4/12

Depreciation 1,425
Total Depreciation for the year 7,322

 

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Book value of machinery as on 1st October 2015 when it was purchased 50,000
Less: – Amount of Depreciation charged on the year 2015-16  
50,000*15%*6/12 3,750
 Amount of Depreciation charged on the year 2016-17  
46,250*15%*12/12 6,938
 Amount of Depreciation charged on the year 2017-18  
39,315*15%*12/12 2,835
Book value of the asset as on 1st March 2018 33,415
Sale Price of Machinery 28,415
loss on the sale of the asset 5,000





Depreciation | Meaning | Methods | Examples

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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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 23 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping