Question No 12 Chapter No 13 – USHA Publication 11 Class

Q-12 - CH-13 - USHA +1 Book 2020 - Solution

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

You Can also read all the above articles in Hindi on our Hindi Website

Depreciation – Meaning – Methods – Examples -In Hindi

Comment if you have any doubt in Question No 12 Chapter No 13 – USHA Publication.

You can also Check out the solved question of other Chapters: –

Chapter No. 1 – Introduction

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