Problem No 7 Chapter No 11 – Unimax Class 11
On April 01, 2019, following balance appeared in the books of M/s. Kanishka Traders: Furniture account ₹ 50,000 provision for depreciation on furniture ₹ 22,000. On October 01,2019 a part of furniture purchases for ₹ 20,000 on oct. 01, 2015 was sold for ₹ 5,000. On the same date a new furniture costing ₹ 25,000 was purchases. The depreciation was provided @ 10% p.a. on original cost of the asset and no depreciation was charged on the asset in the year of sales. Prepare furniture account and provision for depreciation account for the year ending march 31, 2020.
The solution of Problem No 7 Chapter No 11 –
| Dr. | Depreciation A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/04/19 | To Balance b/d | 50,000 | 01/10/19 | By Bank A/c | 5,000 | ||
| 01/10/19 | To Bank A/c | 25,000 | 01/10/19 | By Profit & Loss A/c | 7,000 | ||
| 01/10/19 | By Provision for depreciation A/c | 8,000 | |||||
| 31/03/20 | By Balance C/d | 55,000 | |||||
| 75,000 | 75,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/10/19 | To Machinery A/c | 8,000 | 01/04/19 | By Balance b/d | 22,000 | ||
| 31/03/19 | By Balance C/d | 20,250 | 01/04/19 | By Depreciation A/c | 6,250 | ||
| 28,250 | 28,250 | ||||||
(1) Book value of Machinery purchased on Oct. 1,2015 on Oct. 1, 2019= ₹ 12,000.
(2) Loss on sale of Machinery = ₹ (12000-5,000) = ₹ 7,000.
(3) Depreciation on new machinery purchased on 1st oct., 2019 = ₹ 1,250.
It is all about Problem No 7 Chapter 10 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
Depreciation | Meaning | Methods | Examples
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Depreciation | Meaning | Methods | Examples-in Hindi
Also, Check out the solved question of all Chapters: –
Advanced Accountancy – Unimax Class 11 – 2021 – Solution.
Part-I
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
Students may choose only one part from the Part II and Part III
Part-II
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
Part-III
- Chapter No. 18 – Introduction to Computers and Accounting information System
- Chapter No. 19 – Computerised Accounting
- Chapter No. 20 – Accounting Software: Tally
- Chapter No. 21 – Data Base System
- Chapter No. 22 – Concept of Entity and Relationship