Question No 17 Chapter No 12

Question No 17 Chapter No 12

17. Raja Textiles Co. which closes its books on 31st March, purchased a machine on 1-4-2009 for 50,000. On 1-10-2010, it purchased an additional machine for 30,000. The part of the machine which was purchased on 1-4-2009 costing 10,000 was sold for 3,600 on 30th Sept., 2012. Prepare the Machine Account for four years, if the depreciation is provided at the rate of 10% p.a. on Diminishing Balance Method.

The solution of Question No 17 Chapter No 12: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Apr.2016To Bank A/c (10,000+ 40,000) 50,00031st Mar 2017By Deprecation A/c 5,000
    31st Mar 2017By Balance C/d  45,000
   50,000   50,000
1st Apr.2017To Balance b/f 45,00031st Mar 2018By Deprecation A/c (900 +3,600 + 1500) 6,000
1st Oct.2017To Bank A/c 30,00031st Mar 2018By Balance C/d
 6,95,000
   75,000   75,000
1st Apr.2018To Balance b/f 69,00031st Mar 2019By Deprecation A/c (810 + 3,240 + 2,850) 6,900
    31st Mar 2019By Balance C/d (7,290 + 29,160 + 25,650)  62,100
   69,000
   69,000
1st Apr.2019To Balance b/f 62,10030th Sep.2019By Deprecation A/c 365
    30th Sep.2019By Bank A/c 3,600
    30th Sep.2019By Profit & Loss A/c 3,325
    31st Mar 2020By Deprecation A/c (29,160 + 26,100+2,000) 5,481
    31st Mar 2020By Balance C/d 49,329
   62,100   62,100

Working Note:
Calculation of Profit or Loss on Sale

Statement Showing profit or loss on the sale of Machinery
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Apr. 201610,000
Less: – Amount of Depreciation charged on the year 2017-18 
10,000 *10%* 12/121,000
Amount of Depreciation charged on the year 2018-19 
9,000 *10%* 12/12900
Amount of Depreciation charged on the year 2019-20 
81,000 *10%* 12/12810
Amount of Depreciation charged on the year 2019-20 
7,290 *10%* 6/12365
Book value of an asset as of 1st Oct 20196,925
Sale Price of Machinery 3,600
Loss on the sale of the asset3,325

Note: In order to make an easy calculation, machinery purchased on April 01, 2017, has been divided into two parts i.e. M1 and M2. Thus, M1: Rs 10,000 (sold for Rs 3,600) M2: Rs 40,000

Depreciation | Meaning | Methods | Examples

Comment if you have any question.

Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 17 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

Leave a Reply

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-

close