Question No 09 Chapter No 12 – D.K Goal 11 Class

Question No 09 Chapter No 12

Question No 09 Chapter No 12

Free Accounting book Solution - Class 11 and Class 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/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Apr.2010 To Bank A/c(20,000+1,00,000 )   1,20,000 31st Mar2011 By Deprecation A/c(2,000+10,000+2,500)   14,500
1st Oct.2010 To Bank A/c   50,000 31st Mar 2011 By Balance C/d   54,000
      1,70,000       1,70,000
1st Apr.2011 To Balance b/f   1,55,500 31stMar2012 By Deprecation A/c(2,000+10,000+5,000+1,875)   18,875
1st Jul.2011 To Bank A/c   25,000 31st Mar2012 By Balance C/d
  1,61,625
      1,80,500       1,80,500
1st Apr 2012 To Balance b/f   1,61,625 30th Jan 2013 By Deprecation A/c   1,500
        30th Jan 2013 By Bank A/c (Sale of M1) A/c   6,000
        30th Jan 2013 By Profit & Loss A/c   8,500
        1st Mar 2018 By Deprecation A/c (10,000 + 5,000 +2,500)   17,500
        31st Mar2018 By 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
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Apr. 2010 20,000
Less: – Amount of Depreciation charged on the year 2010-11  
20,000 *10%* 12/12 2,000
Amount of Depreciation charged on the year 2011-12  
20,000 *10%* 12/12 2,000
Amount of Depreciation charged on the year 2013-14  
20,000 *10%* 9/12 1,500
Book value of asset as of 1st Jan 2013 14,500
Sale Price of Machinery 6,000
Loss on the sale of the asset 8,500

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

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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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