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Question No 19 Chapter No 12 – D.K Goal 11 Class

Question No 19 Chapter No 12
Q-19 - CH-12 - D.K Goal +1 Book 2020 - Solution

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Question No 19 Chapter No 12

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19. On July 1, 2016 Pushpak Ltd. purchased a machinery for 5,70,000 and paid 30,000 for its overhauling and installation. Depreciation is provided @ 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2019 for a sum of 1,60,000. You are required to show the Machinery Account and Provision for Depreciation Account for three years.

The solution of Question No 19 Chapter No 12: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Jul.2016To Bank A/c (10,000+ 20,000) 6,00,000    
    31st Mar 2017By Balance C/d  6,00,000
   6,00,000   6,00,000
1st Apr.2017To Balance b/f 6,00,000    
    31st Mar 2018By Balance C/d
 6,00,000
   6,00,000   6,00,000
1st Apr.2018To Balance b/f 6,00,0001st Jan.2019By Provision for
Depreciation A/c
 3,10,000
    1st Jan.2019By Bank A/c (Sale) 1,60,000
    1st Jan.2019By Profit & Loss A/c 1,30,000
   6,00,000   6,00,000
Dr.Provision for Depreciation  A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
    31st Mar.2017By Depreciation A/c (for 9 Month) 90,000
31stMar.2017Balance c/d 90,000    
   90,000   90,000
    31st Apr 2017By Balance b/d 90,000
31stMar.2018Balance c/d 2,10,00031st Mar 2018By Depreciation A/c 1,20,000
   2,10,000   2,10,000
    31st Apr 2018By Balance b/d 2,10,000
1st Apr.2018To Balance b/f 3,10,0001st Jan.2019By Depreciation A/c (for
10 months)
 1,00,000
   3,10,000   3,10,000

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 Jul. 20166,00,000
Less: – Amount of Depreciation charged on the year 2016-17 
6,00,000 *20%* 9/1290,000
Amount of Depreciation charged on the year 2017-18 
6,00,000 *20%* 12/121,20,000
Amount of Depreciation charged on the year 2018-19 
6,00,000 *20%* 10/121,00,000
Book value of asset as on 30st Sep, 20192,90,000
Sale Price of Machinery 1,60,000
Profit on the sale of the asset1,30,000

Depreciation | Meaning | Methods | Examples

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

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D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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