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 original cost of the machine. Both the machine were sold on 1st February, 2019 for Rs 2,45,000 and Rs 5,000 was brokerage was paid on sale .
Prepare Machinery Account for the years 201617 to 2018-19
The solution of Question No 12 Chapter No 13:-
| Dr. | Building A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 01/09/16 | To Cash A/c | 3,00,000 | 31/03/17 | By Deprecation A/c*1 | 20,000 | ||
| 31/03/17 | By Balance C/d | 2,80,000 | |||||
| 3,00,000 | 3,00,000 | ||||||
| 01/03/17 | To Balance b/d | 2,80,000 | 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 | 4,25,500 | ||
| 4,60,000 | 4,60,000 | ||||||
| 01/03/18 | To Balance b/d | 4,25,500 |
31/03/19 | By Deprecation A/c*3 | 40,000 | ||
| 31/03/19 | By Sale A/c | 2,40,000 | |||||
| 31/03/19 | By Loss on sale of machinery A/c | 1,45,500 | |||||
| 18,20,000 | 18,20,000 | ||||||
Working note:-
*1:- Calculation of amount of Depreciation on furniture for 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 01/08/2016 to 31/03/2017 i.e. 8 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,00,000 X 10/100 X 8 / 12
Depreciation = 20,000
Total Depreciation for the year = 20,000
*2:- Calculation of amount of Depreciation on furniture for 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 end of the financial year)
= 3,00,000 X10/100 X 12 / 12
Depreciation = 30,000
Total Depreciation for the year = 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 end of the financial year)
= 1,80,000 X 10/100 X 8 / 12
Depreciation = 4,500
Total Depreciation for the year = 34,500
Depreciation | Meaning | Methods | Examples
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Also, Check out the solved question of all Chapters: –
Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
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)
Chapter No. 16 – Financial Statements – (With Adjustments)