Question No 10 Chapter No 14 - USHA Publication 11 Class

Question No 10 Chapter No 14

Table of Contents

The solution of Question No 10 Chapter No 14: –

Usha Publication – Elements of Book-Keeping PSEB (Class 11) – Solution

Sinking fund for Repayment of Fixed Assets

10. On 1st April 2015 a company obtained the lease of machinery for Rs 1,00,000. it was decided that a depreciation fund should be created for its renewal for four years. According to sinking fund table, the annual instalment of depreciation amounts to Rs 28,201.20 at 5% interest p.a.
Prepare depreciation fund account for four years period.

The solution of Question No 10 Chapter No 14: –

Dr.	Provision for Doubtful Debts A/c						Cr.
Dat	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
				31/03/15	By Balance b/d		28,201.20
31/03/15	By Balance C/d		28,201.20
			28,201.20				28,201.20
31/03/18	To Bad debts A/c		1,896	01/04/15	By Balance b/d		28,201.20
				31/03/16	By Interest A/c(28,210.20 x 5%)		1,410.6
				31/03/16	By Profit/Loss A/c		28,201.20
31/03/16	By Balance C/d		57,812.46
			57,812.46				57,812.46
31/03/16	To Bad debts A/c		2,016	01/04/16	By Balance b/d		57,812.46
				31/03/17	By Interest A/c(57,812.46 x 5%)		2,890.62
31/03/17	By Balance C/d		88,904.28	31/03/17	By Profit/Loss A/c		28,201.20
			88,904.28				88,904.28
				01/04/17	By Balance b/d		88,904.28
				31/03/18	By Interest A/c(88,904.28 x 5%)		4,445.21
31/03/18	By Balance C/d		1,21,550.69	31/03/18	By Profit/Loss A/c		28,201.20
			1,21,550.69				1,21,550.69