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Question No 21 Chapter No 14 – T.S. Grewal 11 Class

Question No 21 Chapter No 14
Question No.21 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 21 Chapter No 14

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21. Kaushal Traders purchased second-hand machinery on 1st April 2015 for ₹ 23,000 and spent ₹ 2,000 on its repair. It was decided to depreciate the machinery @ 20% every year on 31st March at Diminishing Balance Method.
Prepare the Machinery Account from years ended 31st March 2016 to 2018 and show Profit or Loss as it was sold on 31st March 2018 for ₹ 10,800.


The solution of Question No 21 Chapter No 14: –

Dr.Furniture A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/01/15To Bank A/c 25,00031/03/16By Deprecation A/c 5,000
    31/03/16By Balance C/d 20,000
   25,000   25,000
01/04/16To Balance b/d 20,00031/03/17By Deprecation A/c 4,000
    31/03/17By Balance C/d 16,000
   20,000   20,000
01/04/17To Balance b/d 16,00031/03/18By Deprecation A/c 3,200
    31/03/18By Bank A/c 10,800
    31/03/18By Loss on sale of Machinery A/c 2,000
   16,000
   16,000

Working Note:-

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Book value of machinery as on 1st April 2015 when it was purchased25,000
Less: – Amount of Depreciation charged on the year 2015-16 
25,000*20%*12/125,000
 Amount of Depreciation charged on the year 2016-17 
20,000*20%*12/124,000
Amount of Depreciation charged on the year 2017-18 
16,000*20%*12/123,200
Book value of the asset as on 1st October 201712,800
Sale Price of Machinery 10,800
Loss on the sale of the asset2,000





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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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