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Question No 12 Chapter No 14 – T.S. Grewal 11 Class

Question No 12 Chapter No 14
Question No.12 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 12 Chapter No 14

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12. On 1st July 2015, Sohan Lal & Sons purchased a plant costing Rs 60,000. The additional plant was purchased on 1st January 2016 for Rs 40,000 and on 1st October 2016 for Rs 20,000, 1st July 2015 was found to have become obsolete and was sold for Rs 6,000, charging CGST and SGST @6% each.
Prepare the plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged @ 10% p.a. on straight line Method . The account is closed on 31st March each year.

The solution of Question No 12 Chapter No 14: –

Dr.Machine A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/8/15To Cash A/c 60,00031/03/16By Deprecation A/c *1 5,500
01/01/16To Cash A/c 40,00031/03/16By Balance C/d 94,500
   1,00,000   1,00,000
01/04/16To Balance b/d 94,50031/03/17By Deprecation A/c*2 11,000
01/10/16To Cash A/c 20,000
31/03/17By Balance C/d 1,03,500
   1,14,500
   1,14,500
01/04/17To Balance b/d  1,03,50001/04/17By Cash A/c 6,000
    01/04/17By loss on the sale of plant A/c 10,500
    31/03/18By Deprecation A/c 10,000
    31/03/18By Balance C/d 77,000
   1,03,500
   1,03,500


Working note:-

*1:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 60,000
Rate of Depreciation = 10%
Period = from 01/07/15 to 31/03/16 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
=60,000 X 10/100 X 9/12
Depreciation =4,500
Purchased 1st January 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 40,000
Rate of Depreciation = 10%
Period = from 01/1/15 to 31/03/16 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 40,000 X 10/100 X 3/12
Depreciation = 1,000
Total Depreciation for the finical year 2014-15 =5,500
*2:- Calculation of the amount of Depreciation on machinery for F/Y 2016-17
Purchased on 1st July 2015 and on 1st January 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,00,000
Rate of Depreciation = 10%
Period = from 01/04/16 to 31/03/17 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=60,000 X 10/100 X 12/12
Depreciation =10,000
Purchased 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 20,000
Rate of Depreciation = 10%
Period = from 01/10/16 to 31/03/17 i.e.6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 20,000 X 10/100 X 6/12
Depreciation = 1,000
Total Depreciation for the finical year 2016-17= 11,000

One –third of the plant was sold

Statement Showing profit or loss on the sale of MachineryCr.
Particulars
Amount
Book value of machinery as on 1st July 2015 when it was purchased20,000
Less: – Amount of Depreciation charged on the year 2015-16 
20,000*10%*9/121,500
 Amount of Depreciation charged on the year 2016-172,000
Sale Price of Machinery 6,000
Loss on the sale of the asset10,500



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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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