Question No 09 Chapter No 12

Question No 09 Chapter No 12

09. On 1st April 2010, Plant and Machinery was purchased for 1,20,000. New machinery was purchased on 1st Oct. 2010, for 50,000 and on 1st July 2011, for 25,000.
On 1st January 2013, the machinery of the original value of 20,000 which was included in the machinery purchased on 1st April 2010,
was sold for 6,000. Prepare Plant & Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method.
Accounts are closed on 31st March every year.

The solution of Question No 09 Chapter No 12: –

Dr.Machinery A/cCr.
1st Apr.2010To Bank A/c(20,000+1,00,000 ) 1,20,00031st Mar2011By Deprecation A/c(2,000+10,000+2,500) 14,500
1st Oct.2010To Bank A/c 50,00031st Mar 2011By Balance C/d 54,000
   1,70,000   1,70,000
1st Apr.2011To Balance b/f 1,55,50031stMar2012By Deprecation A/c(2,000+10,000+5,000+1,875) 18,875
1st Jul.2011To Bank A/c 25,00031st Mar2012By Balance C/d
   1,80,500   1,80,500
1st Apr 2012To Balance b/f 1,61,62530th Jan 2013By Deprecation A/c 1,500
    30th Jan 2013By Bank A/c (Sale of M1) A/c 6,000
    30th Jan 2013By Profit & Loss A/c 8,500
    1st Mar 2018By Deprecation A/c (10,000 + 5,000 +2,500) 17,500
    31st Mar2018By Balance C/d  1,28,125
   1,61,625   1,61,625

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Machinery Purchase on of Equipment as on 1st Apr. 201020,000
Less: – Amount of Depreciation charged on the year 2010-11 
20,000 *10%* 12/122,000
Amount of Depreciation charged on the year 2011-12 
20,000 *10%* 12/122,000
Amount of Depreciation charged on the year 2013-14 
20,000 *10%* 9/121,500
Book value of asset as of 1st Jan 201314,500
Sale Price of Machinery 6,000
Loss on the sale of the asset8,500

Note: In order to make easy calculation plant and machinery purchased on April 01, 2010 has been divided into two parts i.e. M1 and M2. Thus, M1: Rs 20,000 (sold for Rs 6,000) M2: Rs 1,00,000 (remains in the business)

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 09 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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