Advertisement

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

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

Advertisement

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)

Advertisement

  Rs
1st April 2015Machinery A/c80,000
 Provision for Depreciation A/c36,000

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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Balance b/d 80,00031/03/16By Provision for Deprecation A/c 6,400
01/10/15To Cash A/c 80,00031/03/16By Bank A/c 8,700
01/04/16To Balance b/d 2,20,00031/03/16By Provision for Deprecation A/c 24,000
    31/03/16By Balance C/d 64,000
   80,000   80,000

 

Dr.Provision for Depreciation A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Machinery A/c 6,40031/03/16By Balance b/d A/c 36,000
    31/03/16By Depreciation A/c 6,400
31/03/16To Balance C/d 36,000    
   42,400   42,400

Working note:-

Statement Showing profit or loss on the sale of MachineryCr.
Particulars
Amount
Book value of machinery as on 1st April 2011 when it was purchased16,000
Less: – Amount of Depreciation charged on the year 2011-12 
16,000*10%*12/121,600
 Amount of Depreciation charged on the year 2012-131,600
 Amount of Depreciation charged on the year 2013-141,600
 Amount of Depreciation charged on the year 2014-151,600
Book value of an asset as on 1st April 20159,600
Sale Price of Machinery 8,700
Loss on the sale of the asset900



Advertisement-X

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 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

Advertisement

Advertisement

error: Content is protected !!