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

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

Question No 14 Chapter No 14
Recording of Depreciation by Creating Provision for Depreciation Account
Without Good and Services Tax (GST)
14. Following Goods and Services Tax (GST)

 Rs 1st April 2015 Machinery A/c 80,000 Provision for Depreciation A/c 36,000

On 1st April 2015, they decided to sell a machine for Rs 8,700. this machine was purchased for Rs 16,000 in April 2011. prepare the Provision for the depreciation Account and Machinery Account on 31st March 2016, assuming the firm has been charging Depreciation at 10% p.a. on straight Line Method

The solution of Question No 14 Chapter No 14: –

 Dr. Machine A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/15 To Balance b/d 80,000 31/03/16 By Provision for Deprecation A/c 6,400 01/10/15 To Cash A/c 80,000 31/03/16 By Bank A/c 8,700 01/04/16 To Balance b/d 2,20,000 31/03/16 By Provision for Deprecation A/c 24,000 31/03/16 By Balance C/d 64,000 80,000 80,000

 Dr. Provision for Depreciation A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/15 To Machinery A/c 6,400 31/03/16 By Balance b/d A/c 36,000 31/03/16 By Depreciation A/c 6,400 31/03/16 To Balance C/d 36,000 42,400 42,400

Working note:-

 Statement Showing profit or loss on the sale of Machinery Cr. Particulars Amount Book value of machinery as on 1st April 2011 when it was purchased 16,000 Less: – Amount of Depreciation charged on the year 2011-12 16,000*10%*12/12 1,600 Amount of Depreciation charged on the year 2012-13 1,600 Amount of Depreciation charged on the year 2013-14 1,600 Amount of Depreciation charged on the year 2014-15 1,600 Book value of an asset as on 1st April 2015 9,600 Sale Price of Machinery 8,700 Loss on the sale of the asset 900

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

T.S. Grewal’s Double Entry Book Keeping