Question No 02 Chapter No 13 – USHA Publication 11 Class

Question No 02 Chapter No 13

Question No 02 Chapter No 13

Life of Asset Given in Years

2. Heena Traders purchased a plant for Rs 10,000 on 1st April,2015. installation charges were Rs 2,000 Plants is estimated to have a scrap value of Rs 1,000 at the end of its useful of five years.
Prepare the plants account for the first three years charging depreciation according to straight line method, when books are closed on 31st March every year

 

The solution of Question No 02 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 + Installation charges = 10,000 + 2,000 = 12,000
Number of years of expected useful life = 5 years
Estimated Retaliated or Scrap value = 1,000

Amount of Depreciation = 12,000-1,000  = 2,200
             5

 

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Cash A/c   12,000 31/03/16 By Deprecation A/c   2,200
        31/03/16 By Balance C/d   9,800
      12,000       12,000
01/03/16 To Balance b/d   9,800 31/03/17 By Deprecation A/c   2,200
        31/03/17 By Balance C/d   7,600
      9,800       9,800
01/03/17 To Balance b/d   7,600
31/03/18 By Deprecation A/c   2,200
        31/03/18 By Balance C/d   5,400
      7,600       7,600

 

 

 

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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