# Question No 06 Chapter No 12 – D.K Goal 11 Class

Question No 06 Chapter No 12

06. A company purchased on 1st July 2015 machinery costing 30,000. it purchases further machinery on 1st January 2016 costing 20,000 and on 1st October 2016 costing 10,000. on 1st April 2017, the machinery installed on 1st July 2015 become absolute and was sold for 3,000
Show the Machinery Account for 3 years charging depreciation by fixed installment Method at 10% per annum. Accounts are closed on 31st March every year.

## The solution of Question No 06 Chapter No 12: –

 Dr. Plant & Machinery A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Jul.2015 To Bank A/c 30,000 31st Mar2016 By Deprecation A/c(2,250 +500) 2,750 1st Jan.2016 To Bank A/c 20,000 31st Mar2016 By Balance C/d 47,250 50,000 50,000 1st Apr 2016 To Balance b/f 47,250 31st Mar2017 By Deprecation A/c 5,500 1st Oct 2016 To Bank A/c 10,000 31st Mar2017 By Balance C/d 53,250 57,250 57,250 1st Apr 2017 To Balance b/f 51,750 1st Apr 2017 By Deprecation A/c 3,000 1st Apr 2017 By Loss A/c 21,750 31st Mar2018 By Deprecation A/c(2,000 + 1,000) 3,000 1st Apr 2017 By Balance C/d 24,000 51,750 51,750

Working Note:
Calculation of Depreciation

 Statement Showing profit or loss on the sale of Machinery Particulars Amount Plant value of Equipment as on 1st Jul, 2015 30,000 Less: – Amount of Depreciation charged on the year 2015-16 30,000 *10%* 9/12 2,250 Amount of Depreciation charged on the year 2016-17 30,000 *10%* 12/12 3,000 Book value of asset as of 31st Dec 2018 24,750 Sale Price of Machinery 3,000 Loss on the sale of the asset 21,750

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.