Advertisement

Question No 01 Chapter No 12 – D.K Goal 11 Class

Question No 01 Chapter No 12
Q-01 - CH-12 - D.K Goal +1 Book 2020 - Solution

Advertisement

Question No 01 Chapter No 12

Advertisement

1. On 1st April, 2015, a limited company purchased a Machine for 1,90,000 and spent 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be 50,000 at the end of sixth year.
Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Instalment Method. The books are closed on 31st March every year.

The solution of Question No 01 Chapter No 12: –

Dr.Machinery A/cCr.
DatParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Apr.2015To Balance b/f 2,00,00031st Mar2016By Deprecation A/c 25,000
    31st Mar2016By Balance C/d 1,75,000
   2,00,000   2,00,000
1st Apr 2016To Balance b/f 1,75,00031st Mar2017By Machinery Disposal A/c 25,000
    31st Mar2017By Balance C/d
 1,50,000
   2,00,000   2,00,000
1st Apr 2017To Balance b/f 1,50,00031st Mar2018By Deprecation A/c 25,000
    31st Mar2018By Balance C/d 1,25,000
   1,50,000
   1,50,000
1st Apr.2018To Balance b/f 1,25,00031st Mar2019By Deprecation A/c 25,000
    31st Mar2019By Balance C/d 1,00,000
   1,25,000
   1,25,000
Dr.Depreciation A/c
Cr.
DatParticulars
J.F.AmountDateParticulars
J.F.Amount
31st Mar.2016To Machinery A/c 25,000    
    31stMar2016By Balance C/d 25,000
   25,000   25,000
1st Apr 2016To Machinery A/c 25,000    
    31stMar2017By Balance C/d
 25,000
   25,000   25,000
1st Apr 2017To Machinery A/c 25,000    
    31st Mar2018By Balance C/d 25,000
   25,000   25,000
1st Apr.2018To Machinery A/c 25,000    
    31stMar2019By Balance C/d 25,000
   25,000   25,000

Working Note:
Calculation of Depreciation
The method of calculating the Deprecation rate:

Amount of Depreciation = Cost of assets- Estimated Realizable or Scrap value
 Number of years of expected useful life

Cost of assets = Cost of Machine = 2,00,000
Number of years of expected useful life = 6 years
Estimated Retaliated or Scrap value = 50,000

Amount of Depreciation =2,00,000 -50,000
6
   
 =25,000

Advertisement-X

Rate of Depreciation = 25,000 / 2,00,000 X 100 = 12.5%

Depreciation | Meaning | Methods | Examples

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

D K goel accountancy +1 - ISC_Accounts_11_20_Image-min
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

Advertisement

Advertisement

error: Content is protected !!