Question No 04 Chapter No 13 – USHA Publication 11 Class

Question No 04 Chapter No 13

Question No 04 Chapter No 13

Rate of Depreciation is given

4. A company purchased a plant for Rs 1st April,2015. It further spends Rs 1,000 on its installation. It was put into use from 1st August,2015.You are required to draw the following ledger accounts for the first four years when the rate of depreciation is 10%p.a. on straight-line method and books are closed on 31st March every year:
(i) Plant Account and (ii) Depreciation Account

 

The solution of Question No 04 Chapter No 13:-  

The method of calculating the Deprecation rate:

Amount of Depreciation  = Cost of Machinery / Rate of Depreciation
  = 8,100/ 10 X 100
  = 8,100

 

Dr. Plant A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Cash A/c   81,000 31/03/16 By Deprecation A/c*1   8,100
        31/03/16 By Balance C/d   75,600
      81,000       81,000
01/03/16 To Balance b/d   75,600 31/03/17 By Deprecation A/c   8,100
        31/03/17 By Balance C/d   67,500
      75,600       75,600
01/03/17 To Balance b/d   67,500
31/03/18 By Deprecation A/c   8,100
        31/03/18 By Balance C/d   59,400
      67,500       67,500
01/04/18 To Balance b/d   59,400 31/03/19 By Deprecation A/c   8,100
        31/03/19 By Balance C/d   51,300
      59,400       59,400

 

Dr. Deprecation A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
31/03/16 To Cash A/c   5,400        
        31/03/16 By Profit & Loss A/c   5,400
      5,400       5,400
31/03/17 To Balance b/d   8,100        
        31/03/17 By Profit & Loss A/c   8,100
      8,100       8,100
31/03/18 To Balance b/d   8,100        
        31/03/18 By Profit & Loss A/c   8,100
      8,100       8,100
31/03/19 To Balance b/d   8,100        
        31/03/19 By Profit & Loss A/c   8,100
      8,100       8,100

 

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
The plant put in use on 1st August 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 81,000
Rate of Depreciation = 10%
Period = from 01/08/2015 to 31/03/2016 i.e.8months
(from the date of purchase/Beginning balance to the end of the financial year)
=81,000 X10/100 X 8 / 12
Depreciation = 5,400
Total Depreciation for the year = 5,400

 

 

 

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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