Question No 2 Chapter No 14 – T.S. Grewal 11 Class

Question No 2 Chapter No 14

Question No 2 Chapter No 14

2. On 1st April 2015, X Ltd. Purchased me chine costing Rs 4,00,000 and spent Rs 50,000 on its installation. The estimated life of machinery is 10 years, after which its residual instalment Method and prepare Machinery Account for the three years. The books are closed on 31st March every year.

The solution of Question No 2 Chapter No 14: –  

The method of calculating the Deprecation rate:

Amount of Depreciation = Cost of assets- Estimated Realizable or Scrap value
Number of years of expected useful life

Rate of Deprecation can be calculated with the help of following formula:

Cost of assets = Cost of Machine + Installation cost = 4,00,000+50,000 = 4,50,000
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 50,000

Amount of Depreciation = 4,50,000-50,000  = 40,000
             10

 

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Cash A/c   4,50,000 31/03/16 By Deprecation A/c   40,000
        31/03/16 By Balance C/d   4,10,000
      4,50,000       4,50,000
01/03/16 To Balance b/d   4,10,000 31/03/17 By Deprecation A/c   40,000
        31/03/17 By Balance C/d   3,70,000
      4,10,000       4,10,000
01/03/17 To Balance b/d   3,70,000
31/03/18 By Deprecation A/c   40,000
        31/03/18 By Balance C/d   3,30,000
      3,70,000
      3,70,000

 

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

T.S. Grewal’s Double Entry Book Keeping

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