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

Q-09 - CH-12 - D.K Goal +1 Book 2020 - Solution

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/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

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

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