# Question No 02 Chapter No 13 – USHA Publication 11 Class

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)