Question No 07 Chapter No 12

Question No 07 Chapter No 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/cCr.
1st Jan.2016To Bank A/c 2,50,00031st Dec 2017By Deprecation A/c(12,500 + 2,500) 15,000
1st Jul 2017To Bank A/c 1,00,00031st Dec 2017By Balance C/d 3,35,000
   3,50,000   3,50,000
1st Jan 2017To Balance b/f 3,35,00031st Dec 2018By Deprecation A/c(12,500 +5,000) 17,500
    31st Dec 2018By Balance C/d
   3,35,000   3,35,000
1st Apr 2018To Balance b/f 3,17,5001st Jul 2018By Deprecation A/c 6,250
1st Jul 2018To Bank A/c 2,00,0001st Jul 2018By Loss A/c 1,43,000
    1st Jul 2018By Deprecation A/c(2,000 + 1,000) 75,750
    1st Mar 2019By Balance C/d 10,000
    31st Mar 2017By 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
Plant value of Equipment as on 1st Jan, 20162,50,000
Less: – Amount of Depreciation charged on the year 2016-17 
2,50,000 *5%* 12/1212,500
Amount of Depreciation charged on the year 2017-18 
2,50,000 *5%* 12/1212,500
Amount of Depreciation charged on the year 2018-19 
2,50,000 *5%* 6/126,250
Book value of an asset as of 31st Dec 20182,18,750
Sale Price of Machinery 1,43,000
Loss on the sale of the asset75,750

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 07 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

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