Question No 11 Chapter No 14 - T.S. Grewal 11 Class

Question No 11 Chapter No 14
With Goods and Services Tax (GST)

11. Modern Ltd. Purchased machinery on 1st August 2015 for Rs 60,000. on 1st October 2016, it purchased another machinery for Rs 20,000 plus CGST and SGST @6% each. On 30th June 2017, it sold the first machine purchased in 2015 for Rs 30,500 charging IGST @12%. Depreciation is provided @20% p.a. on the original cost each year. Accounts are closed on 31st March every year. Prepare the Machinery A/c for three years.

The solution of Question No 11 Chapter No 14: –

Dr.	Machine A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/8/15	To Cash A/c		60,000	31/03/16	By Deprecation A/c		8,000
				31/03/16	By Balance C/d		52,000
			60,000				60,000
01/04/16	To Balance b/d		52,000	31/03/17	By Deprecation A/c		14,000
01/04/16	To Cash A/c		20,000	31/03/17	By Balance C/d		58,000
			72,000				72,000
01/04/17	To Balance b/d		58,000	30/06/17	By Cash A/c		38,500
30/06/17	To profit on the sale of machinery		1,500	30/06/17	By Deprecation A/c		3,000
				31/03/18	By Deprecation A/c		4,000
				31/03/18	By Balance C/d		14,000
			59,500				59,500

Working note:-

Statement Showing profit or loss on the sale of Machinery	Cr.
Particulars	Amount
Book value of machinery as on 1st August 2015 when it was purchased	60,000
Less: – Amount of Depreciation charged on the year 2015-16
60,00020%8/12	8,000
Amount of Depreciation charged on the year 2016-17	12,000
Amount of Depreciation charged on the year 2017-18
60,00020%3/12	3,000
Sale Price of Machinery	38,500
Loss on the sale of the asset	1,500

Depreciation | Meaning | Methods | Examples

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

Chapter No. 1 – Introduction to Accounting
Chapter No. 2 – Basic Accounting Terms
Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
Chapter No. 4 – Bases of Accounting
Chapter No. 5 – Accounting Equation
Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
Goods and Services Tax(GST)
Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
Chapter No. 8 – Journal
Chapter No. 9 – Ledger
Chapter No. 10 – Special Purpose Books I – Cash Book
Chapter No. 11 – Special Purpose Books II – Other Books
Chapter No. 12 – Bank Reconciliation Statement
Chapter No. 13 – Trial Balance
Chapter No. 14 – Depreciation
Chapter No. 15 – Provisions and Reserves
Chapter No. 16 – Accounting for Bills of Exchange
Chapter No. 17 – Rectification of Errors
Chapter No. 18 – Financial Statements of Sole Proprietorship
Chapter No. 19 – Adjustments in preparation of Financial Statements
Chapter No. 20 – Accounts from incomplete Records – Single Entry System
Chapter No. 21 – Computers in Accounting
Chapter No. 22 – Accounting Software – Tally
Chapter No. 5 – Accounting Equation
Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
Goods and Services Tax(GST)
Chapter No. 8 – Journal
Chapter No. 9 – Ledger
Chapter No. 10 – Special Purpose Books I – Cash Book