Question No 12 Chapter No 13 – USHA Publication 11 Class

Question No 12 Chapter No 13

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

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of all 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 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.