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 2016.it further spent 10,000 on its installation.it 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.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
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
 1,75,000
   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
Particulars
Amount
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

Comment if you have any question.

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

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

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 04 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close