Question No 12 Chapter No 13
Sale of Total Assets
12. Krishnamurthi purchased a machine for Rs 3,00,000 on 1st April 2016. Another machine was purchased on 1st January 2018 for Rs 1,80,000. the depreciation was charged @10% p.a. on the original cost of the machine. Both the machine was sold on 1st February 2019 for Rs 2,45,000 and Rs 5,000 was brokerage was paid on the sale.
Prepare Machinery Account for the years 2016-17 to 2018-19
The solution of Question No 12 Chapter No 13 – USHA
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J. F. | Amount | Date | Particulars |
J. F. | Amount |
| 01/04/16 | To Cash A/c | 3,00,000 | 31/03/17 | By Deprecation A/c*1 | 30,000 | ||
| 31/03/17 | By Balance C/d | 2,70,000 | |||||
| 3,00,000 | 3,00,000 | ||||||
| 01/04/17 | To Balance b/d | 2,70,000 | 31/03/18 | By Deprecation A/c*2 | 34,500 | ||
| 01/01/18 | To Cash A/c | 1,80,000 | 31/03/18 | By Balance C/d | 4,15,500 | ||
| 4,50,000 | 4,50,000 | ||||||
| 01/04/18 | To Balance b/d | 4,15,500 |
01/02/19 | By Deprecation A/c*3 | 40,000 | ||
| 01/02/19 | By Sale A/c | 2,40,000 | |||||
| 01/02/19 | By Loss on sale of machinery A/c | 1,35,500 | |||||
| 4,15,500 | 4,15,500 | ||||||
Working note:-
*1:- Calculation of the amount of Depreciation on Machinery for the year 2016-17
Machinery purchased on 1st August 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,00,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,00,000 X 10/100 X 12 / 12
Depreciation = 30,000
Total Depreciation for the year = 30,000
*2:- Calculation of the amount of Depreciation on Machinery for the year 2017-18
Machinery purchased on 1st August 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,00,000 X 10/100 X 12 / 12
Depreciation = 30,000
Machinery purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,80,000
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 1,80,000 X 10/100 X 3 / 12
Depreciation = 4,500
Total Depreciation for the year = 34,500
This is all about the Question No 12 Chapter No 13 – USHA Publication.
You can check out the following article to better understand:
Depreciation | Meaning | Methods | Examples
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Depreciation – Meaning – Methods – Examples -In Hindi
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You can also Check out the solved question of other Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
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Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
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Chapter No. 16 – Financial Statements – (With Adjustments)