Advertisement

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

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

Advertisement

Question No 15 Chapter No 14

Advertisement

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

  Rs
1st April 2015Machinery A/c20,00,000
 Provision for Depreciation A/c8,00,000

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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Balance b/d 20,00,00031/03/16By Provision for Deprecation A/c 2,25,000
    31/03/16By Bank A/c 5,00,000
    31/03/16By Provision for Deprecation A/c 25,000
    31/03/16By Balance C/d 12,50,000
   20,00,000   20,00,000

 

Dr.Provision for Depreciation A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Machinery A/c 2,25,00031/03/16By Balance b/d A/c 8,00,000
    31/03/16By Depreciation A/c 1,25,000
31/03/16To Balance C/d 7,00,000    
   9,25,000   9,25,000

Advertisement-X

Working note:-

Statement Showing profit or loss on the sale of MachineryCr.
Particulars
Amount
Book value of machinery as on 1st April 2013 when it was purchased7,50,000
Less: – Amount of Depreciation charged on the year 2013-14 
7,50,000*10%*12/1275,000
 Amount of Depreciation charged on the year 2014-1575,000
 Amount of Depreciation charged on the year 2015-1675,000
Book value of the asset as on 1st April 20155,25,000
Sale Price of Machinery 5,00,000
Loss on the sale of the asset25,000



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

Advertisement-X

T.S. Grewal’s Double Entry Book Keeping

Advertisement-Y

Advertisement

Advertisement

error: Content is protected !!