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Question No 25 Chapter No 14 – T.S. Grewal 11 Class

Question No 25 Chapter No 14
Question No.25 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 25 Chapter No 14

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25. A Machinery was purchased for ₹ 1,80,000 on 1st July, 2015. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2017 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2016 to 2018, if the books are closed on 31st March every year.


The solution of Question No 25 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/07/15To Bank A/c 1,80,00031/03/16By Deprecation A/c*1 13,500
    31/03/16By Balance C/d 1,66,500
   1,80,000   1,80,000
01/04/16To Balance b/d 1,66,50031/03/17By Deprecation A/c 16,650
    31/03/17By Balance C/d 1,49,850
   1,66,500   1,66,500
01/04/17To Balance b/d 1,49,85031/10/17By Deprecation A/c 1,873
01/10/17To Profit on sale of Machinery A/c 41031/10/17By Bank A/c 36,000
    31/03/18By Deprecation A/c*2 11,239
    31/03/18By Balance C/d 1,01,148
   1,50,260
   1,50,260

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,80,000
Rate of Depreciation = 10%
Period = from 01/07/2016 to 31/03/2017 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,80,000 X10/100 X 9/12
Depreciation =13,500
Total Depreciation for the year = 2,300

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
The purchase value of machinery as on 1st July 2015 (1,80,000 *1/4) out of which 1/4 sold45,000
Less: – Amount of Depreciation charged on the year 2015-16 
45,000*10%*9/123,375
 Amount of Depreciation charged on the year 2016-17 
41,625*10%*12/124,162
 Amount of Depreciation charged on the year 2017-18 
37,463*10%*6/121,873
Book value of the asset as on 1st April 201835,590
Sale Price of Machinery 36,000
Profit on the sale of the asset410

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*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,12,388
Rate of Depreciation = 10%
Period = from 01/03/2017 to 31/03/2018 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,12,388 X10/100 X 12/12

Depreciation11,239
Total Depreciation for the year11,239

 

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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