Question No 01 Chapter No 13 – USHA Publication 11 Classc

Question No 01 Chapter No 13

Question No 01 Chapter No 13

Life of Asset Given in Years

1. On 1st April 2016, a machine was purchased for Rs 35,000. The estimated life of the machine is 5 years after which its brake up value will be Rs 5,000 only. Prepare the machinery account for the first three years, by straight-line method assuming that the books are closed on 31st March.

 

The solution of Question No 01 Chapter No 13:-  

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

Rate of Deprecation can be calculated with the help of following formula:

Cost of assets = Cost of Machine = 35,000
Number of years of expected useful life = 5 years
Estimated Retaliated or Scrap value = 5,000

Amount of Depreciation = 35,000-5,000  = 6,000
             5

Rate of Depreciation = 6,000 / 35,000 X 100 = 17.14(app.)
Applying the rate of 17.14% on Rs 35,000, Depreciation amount is Rs 5,999.50 approximated to Rs 35,000

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/14 To Cash A/c   35,000 31/03/15 By Deprecation A/c   6,000
        31/03/15 By Balance C/d   29,000
      35,000       35,000
01/03/15 To Balance b/d   29,000 31/03/16 By Deprecation A/c   6,000
        31/03/16 By Balance C/d   23,000
      29,000       29,000
01/03/16 To Balance b/d   23,000
31/03/17 By Deprecation A/c   6,000
        31/03/17 By Balance C/d   17,000
      23,000       23,000

 

 

 

Depreciation | Meaning | Methods | Examples

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

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