Question No 23 Chapter No 13 – USHA Publication 11 Class

Question No 23 Chapter No 13

Question No 23 Chapter No 13

Depreciation on Written Down Value

23. On 1st April 2015, Bhola Nath & Sons purchased a machine costing Rs 1,00,000. its working life is 10 years. It has ben decided to depreciate it at rate of 20% p.a. on the diminishing balance method. Show the machinery Account for first three years, Books are closed on 31st March each year.

The solution of Question No 23 Chapter No 13:-  

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Cash A/c   1,00,000 31/03/16 By Deprecation A/c*1   20,000
        31/03/16 By Balance C/d   80,000
      1,00,000       1,00,000
01/04/16 To Balance b/d   80,000 31/03/17 By Depreciation A/c*2   16,000
        31/03/17 By Balance C/d   64,000
      80,000       80,000
01/04/17 To Balance b/d   64,000 31/03/18 By Deprecation A/c*3   12,800
        31/03/19 8By Balance C/d   51,200
      64,000       64,000

 

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Machinery purchased on 1st Apr 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,00,000
Rate of Depreciation = 20%
Period = from 01/04/2015 to 31/03/2016 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 50,000 X 20/100 X 12/ 12
Depreciation = 20,000
Total Depreciation for the year = 20,000

*2:– Calculation of the amount of Depreciation on furniture for year 2016-17
Machinery purchased on 1st Apr 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 80,000
Rate of Depreciation = 20%
Period = from 01/10/2016 to 31/03/2017 i.e. 6 months
(from the date of purchase/Beginning balance to end of the financial year)
= 80,000 X 20/100 X 12/ 12
Depreciation = 16,000
Total Depreciation for the year = 16,000

*3:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Apr 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 64,000
Rate of Depreciation = 20%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 64,000 X 10/100 X 12/ 12
Depreciation = 12,800
Total Depreciation for the year = 12,800

Depreciation | Meaning | Methods | Examples

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

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