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

Question No 11 Chapter No 14

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  
60,000*20%*8/12 8,000
 Amount of Depreciation charged on the year 2016-17 12,000
 Amount of Depreciation charged on the year 2017-18  
60,000*20%*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

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T.S. Grewals Double Entry Book Keeping - Question No 11 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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