Question No 10 Chapter No 14 – USHA Publication 11 Class

Question No 10 Chapter No 14

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


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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)

 

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