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

Question No 15 Chapter No 14

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

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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 15 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping