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.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Apr.2014To Balance b/f(6,80,000 + 1,20,000) 8,00,0001st Jul.2014By Provision for
Depreciation A/c
 58,500
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.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
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
Particulars
Amount
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
Particulars
Amount
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
 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

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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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