# Question No 15 Chapter No 14 – T.S. Grewal 11 Class

Question No.15 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Question No 15 Chapter No 14

15. Following balances appear in the books of Priyank Brothers:

 Rs 1st April 2015 Machinery A/c 20,00,000 Provision for Depreciation A/c 8,00,000

On 1st April, 2016, they decide to sell a machine for ₹ 5,00,000. This machine was purchased for ₹ 7,50,000 on 1st April, 2013. Prepare the Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2017 assuming that the firm has been charging Depreciation @ 10% p.a. on the Straight Line Method

The solution of Question No 15 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 20,00,000 31/03/16 By Provision for Deprecation A/c 2,25,000 31/03/16 By Bank A/c 5,00,000 31/03/16 By Provision for Deprecation A/c 25,000 31/03/16 By Balance C/d 12,50,000 20,00,000 20,00,000

 Dr. Provision for Depreciation A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/15 To Machinery A/c 2,25,000 31/03/16 By Balance b/d A/c 8,00,000 31/03/16 By Depreciation A/c 1,25,000 31/03/16 To Balance C/d 7,00,000 9,25,000 9,25,000

Working note:-

 Statement Showing profit or loss on the sale of Machinery Cr. Particulars Amount Book value of machinery as on 1st April 2013 when it was purchased 7,50,000 Less: – Amount of Depreciation charged on the year 2013-14 7,50,000*10%*12/12 75,000 Amount of Depreciation charged on the year 2014-15 75,000 Amount of Depreciation charged on the year 2015-16 75,000 Book value of the asset as on 1st April 2015 5,25,000 Sale Price of Machinery 5,00,000 Loss on the sale of the asset 25,000

Depreciation | Meaning | Methods | Examples

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

T.S. Grewal’s Double Entry Book Keeping