Question No 28 Chapter No 12

Question No 28 Chapter No 12

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

Machinery A/c as on 1-4-20148,00,000
Provision for Depreciation A/c as on 1-4-20143,10,000

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/cCr.
1st Apr.2014To Balance b/f(6,80,000 + 1,20,000) 8,00,0001st Jul.2014By Provision for
Depreciation A/c
1st Jul.2014To Bank A/c 3,20,0001st Jul.2014By Bank A/c (Sale) 50,000
    1st Jul.2014By Profit & Loss A/c 11,500
    31st Mar 2011By Balance C/d  10,00,000
   11,20,000   11,20,000
Dr.Provision for Depreciation  A/cCr.
31st Jul.2014To Machinery A/c (54,000 +4,500) 58,50031st Apr 2014By Balance b/d 3,10,000
    31st Mar.2015By Depreciation A/c* 1,42,500
31stMar.2015Balance 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
Machinery Purchase on of Equipment as on 1st Apr. 20111,20,000
Less: – Depreciation for 3 Years 3 months58,500
Book value of asset as on 1st Jul, 201461,500
Sale Price of Machinery 50,000
Loss on the sale of the asset11,500
*Depreciation charged during the year
On Rs 6,80,000 @ 15%1,02,000
On Rs 1,20,000 @ 15% for 3 months4,500
On Rs 3,20,000 @ 15% for 9 months36,000

Depreciation | Meaning | Methods | Examples

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

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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

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