Question No 15 Chapter No 13 - USHA Publication 11 Class

Question No 15 Chapter No 13 – USHA

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The solution of Question No 15 Chapter No 13 – USHA

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Sale of Total Assets

15. Prabhu Deva purchased a machine for Rs 10,00,000 on 1st July 2015. it further purchased the machine for Rs 4,00,000 on 1st October 2016. in July 2017, one-fifth of the machinery purchased on 1st July 2015 was sold at 80% of book value.
Prepare the machinery account for the years 2015-16 to 2018-19, when depreciation was charged @10% p.a. on the fixed instalment method

The solution of Question No 15 Chapter No 13 – USHA

Dr.	Machinery A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
01/07/15	To Cash A/c		10,00,000	31/03/16	By Deprecation A/c*1		75,000
				31/03/16	By Balance C/d		9,25,000
			10,00,000				10,00,000
01/04/16	To Balance b/d		9,25,000	31/03/17	By Deprecation A/c*2		1,20,000
01/10/16	To Cash A/c		4,00,000	31/03/17	By Balance C/d		12,05,000
			12,05,000				13,25,000
01/04/17	To Balance b/d		12,05,000	01/07/18	By Deprecation A/c		5,000
				01/07/18	By Sale A/c		1,28,000
				01/07/18	By Profit/Loss A/c		32,000
				31/03/18	By Deprecation A/c*3		1,20,000
				31/03/18	By Balance C/d		9,20,000
			12,05,000				12,05,000
01/03/18	To Balance b/f		9,20,000	31/03/19	By Deprecation A/c*4		1,20,000
				31/03/19	By Balance C/d		8,00,000
			9,20,000				9,20,000

Working note:-

*1:- Calculation of amount of Depreciation on furniture for year 2015-16
Machinery purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,00,000
Rate of Depreciation = 10%
Period = from 01/07/2015 to 31/03/2016 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 10,00,000 X 20/100 X 9 / 12
Depreciation = 75,000
Total Depreciation for the year = 75,000

*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Machinery purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,00,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e. 12 months
(from the date of purchase/Beginning balance to end of the financial year)
= 10,00,000 X 10/100 X 12/ 12
Depreciation = 1,00,000
Machinery purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/10/2016 to 31/03/2017 i.e. 6 months
(from the date of purchase/Beginning balance to end of the financial year)
Depreciation = 20,000
Total Depreciation for the year 1,20,000

Statement Showing profit or loss on the sale of Machinery
Particulars	Amount
Purchase value of machinery as on 1st July, 2015 1/5	2,00,000
Less: – Amount of Depreciation charged on the year 2015-16
2,00,00010% 9/12	15,000
Amount of Depreciation charged on the year 2016-17
2,00,00010%12/12	20,000
Amount of Depreciation charged on the year 2017-18
2,00,00010%3/12	5,000
Book value of the asset as on 1st January 2019	1,60,000
Sale Price of Machinery	1,28,000
Losson the sale of the asset	32,000

*3:- Calculation of amount of Depreciation on furniture for year 2017-18
Machinery purchased on 1st July 1/5 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 8,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/10/2018 i.e. 12 months
(from the date of purchase/Beginning balance to end of the financial year)
= 8,00,000 X 10/100 X 12/ 12
Depreciation = 80,000
Machinery purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to end of the financial year)
= 4,00,000 X 10/100 X 12/ 12
Depreciation = 40,000
Total Depreciation for the year = 1,20,000

*4:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st July 1/5 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 8,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/10/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 8,00,000 X 10/100 X 12/ 12
Depreciation = 80,000
Machinery purchased on 1st October 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 4,00,000 X 10/100 X 12/ 12
Depreciation = 40,000
Total Depreciation for the year = 1,20,000