Question No 04 Chapter No 12

Question No 04 Chapter No 12

04. A company purchased a plant for 2,00,000 on 1st April further spent 10,000 on its was brought in use from 1st August 2016 Depreciation is written off at 10% p.a. on straight line method. On 31st December 2018 the plant is sold for 1,20,000. prepare the plant A/c assuming that the books are closed on 31st March each year

The solution of Question No 04 Chapter No 12: –

Dr.Machinery A/cCr.
1st Aug.2016To Bank A/c 2,10,00031stMar2017By Deprecation A/c 14,000
    31stMar2017By Balance C/d 1,96,000
   2,10,000   2,10,000
1st Apr 2017To Balance b/f 1,96,00031stMar2018By Deprecation A/c 21,000
    31stMar2018By Balance C/d
   1,96,000   1,96,000
1st Apr.2018To Balance b/f 1,75,00031st Dec 2018By Deprecation A/c 15,750
    31st Dec 2018By Bank A/c 1,20,000
    31st Dec 2018By Profit & Loss A/c 39,250
   1,75,000   1,75,000

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Plant value of Equipment as of 1st Aug 20162,10,000
Amount of Depreciation charged on the year 2016-17 
2,10,000 *10%* 8/1214,000
Amount of Depreciation charged on the year 2017-18 
2,10,000 *10%* 12/1221,000
Amount of Depreciation charged on the year 2018-19 
2,10,000 *10%* 9/1215,750
Book value of asset as on 31st Dec , 20181,59,250
Sale Price of Machinery 1,20,000
Loss on the sale of the asset39,250

Depreciation | Meaning | Methods | Examples

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

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ISC Accounts 11 20 Image min 197x300 - Question No 04 Chapter No 12 - D.K Goal 11 Class
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