Question No 28 Chapter No 12 – D.K Goal 11 Class

Question No 28 Chapter No 12

Question No 28 Chapter No 12

Free Accounting book Solution - Class 11 and Class 12

28. The following balances appear in the books of Y Ltd:

Machinery A/c as on 1-4-2014 8,00,000
Provision for Depreciation A/c as on 1-4-2014 3,10,000

On 1-7-2014, machinery which was purchased on 1-4-2011 for 1,20,000 was sold for 50,000 and on the same date another machinery was purchased for 3,20,000. The firm has been charging depreciation at 15% p.a. on Original Cost Method and closes its books on 31st March every year. Prepare the Machinery A/c and Provision for Depreciation A/c for the year ending 31st March 2015.

The solution of Question No 28 Chapter No 12: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Apr.2014 To Balance b/f(6,80,000 + 1,20,000)   8,00,000 1st Jul.2014 By Provision for
Depreciation A/c
  58,500
1st Jul.2014 To Bank A/c   3,20,000 1st Jul.2014 By Bank A/c (Sale)   50,000
        1st Jul.2014 By Profit & Loss A/c   11,500
        31st Mar 2011 By Balance C/d   10,00,000
      11,20,000       11,20,000
Dr. Provision for Depreciation  A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
31st Jul.2014 To Machinery A/c (54,000 +4,500)   58,500 31st Apr 2014 By Balance b/d   3,10,000
        31st Mar.2015 By Depreciation A/c*   1,42,500
31stMar.2015 Balance c/d   3,94,000        
      4,52,500       4,52,500

Working Note:
Calculation of Profit or Loss on Sale M1

Statement Showing the Profit and loss on the sale of Plant
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Apr. 2011 1,20,000
Less: – Depreciation for 3 Years 3 months 58,500
Book value of asset as on 1st Jul, 2014 61,500
Sale Price of Machinery 50,000
Loss on the sale of the asset 11,500
*Depreciation charged during the year
Particulars
Amount
On Rs 6,80,000 @ 15% 1,02,000
On Rs 1,20,000 @ 15% for 3 months 4,500
On Rs 3,20,000 @ 15% for 9 months 36,000
  1,42,500

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 28 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

Leave a Reply

Your email address will not be published. Required fields are marked *