# Question No 10 Chapter No 14 – USHA Publication 11 Class

Question No 10 Chapter No 14

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

Note:
(1) It is assumed that Depreciation fund investments realized face value
(2) All calculation has been done to the nearest paisa

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting

Chapter No. 3 – Origin of Transactions

Chapter No. 4 – Vouchers and transactions

Chapter No. 5 – Journal

Chapter No. 6 – Accounting for Goods and Services Tax(GST)

Chapter No. 7 – Ledger

Chapter No. 8 – Cash Book

Chapter No. 9 – Other Subsidiary Books

Chapter No. 10 – Journal Proper

Chapter No. 11 – Trial Balance

Chapter No. 12 – Bank Reconciliation Statement

Chapter No. 13 – Depreciation

Chapter No. 14 – Provisions and Reserves

Chapter No. 15 – Bills of Exchange

Chapter No. 16 – Rectification of Errors

Chapter No. 17 – Financial Statements – (Without Adjustments)

Chapter No. 18 – Financial Statements – (With Adjustments)