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

Question No.14 Chapter No.14 T.S. Grewal 1 Book 2019 Solution min min 1024x576 - Question No 14 Chapter No 14 - T.S. Grewal 11 Class

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

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

T.S. Grewal’s Double Entry Book Keeping

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