Question No 07 Chapter No 12 – D.K Goal 11 Class

Question No 07 Chapter No 12

Question No 07 Chapter No 12

Free Accounting book Solution - Class 11 and Class 12

07. On 1st January 2016 a Ltd. Purchased a machine for 2,40,000 and spent 10,000 on its erection. On 1st July 2016 an additional machinery costing 1,00,000 was purchased. On 1st July 2018 the machine purchased on 1st January 2016 was sold for 1,43,000 and on the same date, a new machine was purchased at a cost of 2,00,000
Show the Machinery account for first three calendar years after charging depreciation at 5% by the straight line Method.

The solution of Question No 07 Chapter No 12: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Jan.2016 To Bank A/c   2,50,000 31st Dec 2017 By Deprecation A/c(12,500 + 2,500)   15,000
1st Jul 2017 To Bank A/c   1,00,000 31st Dec 2017 By Balance C/d   3,35,000
      3,50,000       3,50,000
1st Jan 2017 To Balance b/f   3,35,000 31st Dec 2018 By Deprecation A/c(12,500 +5,000)   17,500
        31st Dec 2018 By Balance C/d
  3,17,500
      3,35,000       3,35,000
1st Apr 2018 To Balance b/f   3,17,500 1st Jul 2018 By Deprecation A/c   6,250
1st Jul 2018 To Bank A/c   2,00,000 1st Jul 2018 By Loss A/c   1,43,000
        1st Jul 2018 By Deprecation A/c(2,000 + 1,000)   75,750
        1st Mar 2019 By Balance C/d   10,000
        31st Mar 2017 By Balance C/d   2,82,500
      5,17,500       5,17,500

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Plant value of Equipment as on 1st Jan, 2016 2,50,000
Less: – Amount of Depreciation charged on the year 2016-17  
2,50,000 *5%* 12/12 12,500
Amount of Depreciation charged on the year 2017-18  
2,50,000 *5%* 12/12 12,500
Amount of Depreciation charged on the year 2018-19  
2,50,000 *5%* 6/12 6,250
Book value of an asset as of 31st Dec 2018 2,18,750
Sale Price of Machinery 1,43,000
Loss on the sale of the asset 75,750

Depreciation | Meaning | Methods | Examples

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

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D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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