Question No 13 Chapter No 14 – T.S. Grewal 11 Class

Question No 13 Chapter No 14

Question No 13 Chapter No 14

13. A firm purchased a second- hand machine on 1st April 2015 and paid 1,40,000 for it. It spent on its overhauling and installation Rs 20,000. on 1st October 2015, another machine costing Rs 80,000 was purchased. On 1st October 2017, the machine purchased on 1st April 2015 was disposed of for Rs 1,04,000, charging CGST and SGST @6% each and new machine costing Rs 2,00,000 was installed, paying CGST and SGST @6% each. Deprecation as provided @10%p.a. by the Straight Line method. Give the Machinery Account and Deprecation Account for the 3 years. Firm ‘s books are closed on 31st March every year.

The solution of Question No 13 Chapter No 14: –

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Cash A/c   1,60,000 31/03/16 By Deprecation A/c *1   20,000
01/10/15 To Cash A/c   80,000 31/03/16 By Balance C/d   2,20,000
      2,40,000       2,40,000
01/04/16 To Balance b/d   2,20,000 31/03/17 By Deprecation A/c   24,000
        31/03/17 By Balance C/d   1,96,000
      2,20,000       2,20,000
01/04/17 To Balance b/d    1,96,000 01/10/17 By Cash A/c   1,04,000
01/10/17 To Cash A/c   2,00,000 01/10/17 By Deprecation A/c   8,000
        01/10/17 By loss on the sale of plant A/c   16,000
        31/03/18 By Deprecation A/c   18,000
        31/03/18 By Balance C/d   2,50,000
      3,96,000
      3,96,000

 

Dr. Depreciation A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
31/06/16 To Machinery A/c   20,000        
        31/03/16 By Profit and Loss A/c   20,000
      20,000       20,000
31/03/17 To Machinery A/c   24,000        
        31/03/17 By Profit and Loss A/c   24,000
      24,000       24,000
01/10/17 To Machinery A/c   8,000        
31/03/18 To Machinery A/c   18,000        
        31/03/18 By Profit and Loss A/c   26,000
      26,000
      26,000

Working note:-

*1:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 1,60,000
Rate of Depreciation = 10%
Period = from 01/04/15 to 31/03/16 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,60,000 X 10/100 X 12/12
Depreciation =16,000

Purchased 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 80,000
Rate of Depreciation = 10%
Period = from 01/10/15 to 31/03/16 i.e. 6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 80,000 X 10/100 X 6/12
Depreciation = 4,000
Total Depreciation for the finical year 2014-15 =20,000

*2:- Calculation of the amount of Depreciation on machinery for F/Y 2017-18
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 80,000
Rate of Depreciation = 10%
Period = from 01/04/17 to 31/03/18 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=80,000 X 10/100 X 12/12
Depreciation =8,000
Purchased 1st October 2017
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/10/15 to 31/03/16 i.e. 6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 2,00,000 X 10/100 X 6/12
Depreciation = 1,000
Total Depreciation for the finical year 2017-18= 18,000


One –third of the plant was sold

Statement Showing profit or loss on the sale of Machinery Cr.
Particulars
Amount
Book value of machinery as on 1st April 2015 when it was purchased 1,60,000
Less: – Amount of Depreciation charged on the year 2015-16  
1,60,000*10%*12/12 16,000
 Amount of Depreciation charged on the year 2016-17 16,000
Amount of Depreciation charged on the year 2017-18  
1,60,000*10%*6/12 8,000
Sale Price of Machinery 1,04,000
Loss on the sale of the asset 16,000



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

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T.S. Grewals Double Entry Book Keeping - Question No 13 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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