Advertisement

Question No 23 Chapter No 14 – T.S. Grewal 11 Class

Question No 23 Chapter No 14Question No 23 Chapter No 14
Question No.23 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Advertisement

Question No 23 Chapter No 14

Advertisement

23. A company purchased machinery for ₹ 50,000 on 1st October 2015. Another machinery costing ₹10,000 was purchased on 1st December 2016. On 31st March 2018, the machinery purchased in 2015 was sold at a loss of ₹ 5,000. The company charges depreciation @ 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare the Machinery Account for 3 years.


The solution of Question No 23 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/10/15To Bank A/c 50,00031/03/16By Deprecation A/c*1 3,500
    31/03/16By Balance C/d 46,250
   50,000   50,000
01/04/16To Balance b/d 31,50031/03/17By Deprecation A/c*2 7,438
01/12/16To Bank A/c 10,00031/03/17By Balance C/d 48,812
   56,250   56,250
01/04/17To Balance b/d 48,81231/03/18By Deprecation A/c*3 7,322
    31/03/18By Bank A/c 28,415
    31/03/18By loss on the sale of the Machinery 5,000
    31/03/18By Balance C/d 8,075
   48,812
   48,812

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 50,000
Rate of Depreciation = 15%
Period = from 01/10/2015 to 31/03/2016 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=50,000 X1 5/100 X 6/12
Depreciation =3,750
Total Depreciation for the year =3,750

Advertisement-X

*2:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 46,250
Rate of Depreciation = 15%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=46,250 X1 5/100 X 12/12

Depreciation6,938

Purchased on 1st December 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,000
Rate of Depreciation = 15%
Period = from 01/12/2016 to 31/03/2017 i.e.4months
(from the date of purchase/Beginning balance to the end of the financial year)
=10,000 X1 5/100 X 4/12

Depreciation500
Total Depreciation for the year7,438

*3:- Calculation of the amount of Depreciation on furniture for the year 2017-18

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 39,315
Rate of Depreciation = 15%
Period = from 01/03/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=39,315 X1 5/100 X 12/12

Depreciation5,897

Purchased on 1st December 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 9,500
Rate of Depreciation = 15%
Period = from 01/06/2017 to 31/03/2018 i.e.12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=9,500 X 15/100 X 4/12

Depreciation1,425
Total Depreciation for the year7,322

Advertisement-Y

 

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Book value of machinery as on 1st October 2015 when it was purchased50,000
Less: – Amount of Depreciation charged on the year 2015-16 
50,000*15%*6/123,750
 Amount of Depreciation charged on the year 2016-17 
46,250*15%*12/126,938
 Amount of Depreciation charged on the year 2017-18 
39,315*15%*12/122,835
Book value of the asset as on 1st March 201833,415
Sale Price of Machinery 28,415
loss on the sale of the asset5,000





Advertisement-X

Depreciation | Meaning | Methods | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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

Advertisement

Advertisement

error: Content is protected !!