# Question No 27 Chapter No 13 – USHA Publication 11 Class Question No 27 Chapter No 13

WDV Method and Total Sale

27. Ram Roopmati purchased a machine for Rs 3,80,000 and spent Rs 20,000 on its installation 1st April 2016. on 1st July 2017, another machine was purchased for Rs 1,00,000. Depreciation was charged @10% p.a. on written down value basis. On 31st December 2018, both machineries were sold for a consolidated price of Rs 2,20,000.
Prepare Machinery Account for the years 2016-17 to 2018-19

The solution of Question No 27 Chapter No 13:-

 Dr. Machine A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/16 To Cash A/c 4,00,000 31/03/17 By Deprecation A/c*1 40,000 31/03/17 By Balance C/d 3,60,000 4,00,000 4,00,000 01/04/17 To Balance b/d 3,60,000 31/03/18 By Depreciation A/c*2 43,500 01/07/17 To Cash A/c 1,00,000 31/03/18 By Balance C/d 4,16,500 4,60,000 4,60,000 01/04/18 To Balance b/d 416,500 31/12/18 By Deprecation A/c*3 31,238 31/12/18 By Bank A/c 2,20,000 31/12/18 By Profit/Loss A/c 1,65,262 4,16,500 4,16,500

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 4,00,000 X 10/100 X 12/ 12
Depreciation = 40,000
Total Depreciation for the year = 40,000

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,60,000
Rate of Depreciation = 10%
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)
= 3,60,000 X 10/100 X 12/ 12
Depreciation = 36,000
Machinery purchased on 1st July 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,00,000
Rate of Depreciation = 10%
Period = from 01/07/2017 to 31/03/2018 i.e. 9 months
(from the date of purchase/Beginning balance to end of the financial year)
= 1,00,000 X 10/100 X 9/ 12
Depreciation = 7,500
Total Depreciation for the year = 43,500

*3:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,24,000
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/12/2019 i.e. 10 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,24,000 X 10/100 X 10/ 12
Depreciation = 24,300
Machinery purchased on 1st July 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 92,500
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/012/2019 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 1,00,000 X 10/100 X 9/ 12
Depreciation = 6938
Total Depreciation for the year = 31,238

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)