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Question No 02 Chapter No 13 – USHA Publication 11 Class

Question No 02 Chapter No 13
Q-02 - CH-13 - USHA +1 Book 2020 - Solution

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Question No 02 Chapter No 13

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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

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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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Cash A/c 12,00031/03/16By Deprecation A/c 2,200
    31/03/16By Balance C/d 9,800
   12,000   12,000
01/03/16To Balance b/d 9,80031/03/17By Deprecation A/c 2,200
    31/03/17By Balance C/d 7,600
   9,800   9,800
01/03/17To Balance b/d 7,600
31/03/18By Deprecation A/c 2,200
    31/03/18By Balance C/d 5,400
   7,600   7,600

 

 

 

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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 

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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

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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 

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

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

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