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

Q-28 - CH-12 - D.K Goal +1 Book 2020 - Solution

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Question No 28 Chapter No 12

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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 forDepreciation 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

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