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Question No 26 Chapter No 14 – T.S. Grewal 11 Class

Question No 26 Chapter No 14
Question No.26 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 26 Chapter No 14

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26.M/s. P & Q purchased machinery for ₹ 40,000 on 1st October 2015. Depreciation is provided @ 10% p.a. on the Diminishing Balance. On 31st January 2018, one-fourth of the machinery was found unsuitable and disposed of for ₹ 5,600. On the same date, new machinery at a cost of ₹ 15,000 was purchased. Write up the Machinery account for the years ended 31st March 2016, 2017 and 2018. Accounts are closed on 31st March each year.


The solution of Question No 26 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/10/15To Bank A/c 40,00031/03/16By Deprecation A/c 2,000
    31/03/16By Balance C/d 38,000
   40,000   40,000
01/04/16To Balance b/d 38,00031/03/17By Deprecation A/c 3,800
    31/03/17By Balance C/d 34,200
   38,000   38,000
01/04/17To Balance b/d 34,20031/01/18By Deprecation A/c 713
31/01/18To Bank A/c 15,00031/01/18By Bank A/c 5,600
    31/01/18By Loss on sale of Machinery A/c 2,237
    31/03/18By Deprecation A/c*1 2,815
    31/03/18By Balance C/d 37,835
   49,200
   49,200

Working Note:-`

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
The purchase value of machinery as on 1st October 2015 (40,000*1/4) out of which 1/4 sold10,000
Less: – Amount of Depreciation charged on the year 2015-16 
10,000*10%*6/12500
 Amount of Depreciation charged on the year 2016-17 
9,500*10%*12/12950
 Amount of Depreciation charged on the year 2017-18 
8,550*10%*10/12713
Book value of the asset as on 1st April 20187,877
Sale Price of Machinery 5,600
Loss on the sale of the asset2,237

 

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*1:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 25,650
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)
=25,650 X10/100 X 12/12

Depreciation2,565

Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 15,000
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e.2months
(from the date of purchase/Beginning balance to the end of the financial year)
=15,000 X10/100 X 12/12

Depreciation250
Total Depreciation for the year2,815

 

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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