Question No 24 Chapter No 12

Question No 24 Chapter No 12

24. X Ltd. purchased a plant on 1st July 2010 costing 5,00,000. It purchased another plant on 1st September 2010 costing 3,00,000. On 31st December 2012, the plant purchased on 1st July 2010 got out of order and was sold for 2,15,000. Another plant was purchased to replace the same for 6,00,000. Depreciation is to be provided at 20% p.a. according to Written Down Value Method. The accounts are closed every year on 31st March.
Show the Plant Account and Provision for Depreciation Account.

The solution of Question No 24 Chapter No 12: –

Dr.Plant A/cCr.
1st Jul.2010To Bank A/c(P1) 5,00,000    
1st Sep.2010To Bank A/c(P2) 3,00,00031st Mar 2011By Balance C/d  8,00,000
   8,00,000   8,00,000
1st Apr.2011To Balance b/f 8,00,000    
    31st Mar 2012By Balance C/d
   8,00,000   8,00,000
1st Apr.2012To Balance b/f 8,00,00031st Dec.2012By Provision for
Depreciation A/c
31stDec.2012To Bank A/c 6,00,00031st Dec.2012By Bank A/c (Sale) 2,15,000
    31st Dec.2012By Profit & Loss A/c 74,000
    31st Mar 2012By Balance C/d(3,00,000 + 6,00,000)  9,00,000
   14,00,000   14,00,000
Dr.Provision for Depreciation  A/cCr.
    31st Mar 2011By Depreciation A/c (75,0000 + 35,000) 1,10,000
31stMar.2011Balance c/d 1,10,000    
   1,10,000   1,10,000
    31st Apr 2011By Balance b/d 1,10,000
31stMar.2012Balance c/d 2,48,00031st Mar 2012By Depreciation A/c (85,000 + 53,000) 1,38,000
   2,48,000   2,48,000
31st Jul.2011To Machinery A/c (75,000 + 85,000 + 66,000) 2,11,00031st Apr 2012By Balance b/d 2,02,500
    31st Dec.2012By Depreciation A/c (9 Months) 51,000
1st Apr.2012To Balance b/f 1,60,40031st Mar.2012By Depreciation A/c (60,000 + 42,000) 72,400
   3,71,400   3,71,400

Working Note:
Calculation of Profit or Loss on Sale M1

Statement Showing profit or loss on the sale of Machinery
Machinery Purchase on of Equipment as on 1st Jul. 20105,00,000
Less: – Amount of Depreciation charged on the year 2010-11 
5,00,000 *20%* 6/1275,000
Amount of Depreciation charged on the year 2011-12 
5,00,000 *20%* 12/1285,000
Amount of Depreciation charged on the year 2012-13 
5,00,000 *20%* 9/1251,000
Book value of the asset as of 30th Jul 20112,89,000
Sale Price of Machinery 2,15,000
Loss on the sale of the asset74,000

Depreciation | Meaning | Methods | Examples

Comment if you have any question.

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

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

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 24 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-