# Question No 28 Chapter No 13 – USHA Publication 11 Class

Question No 28 Chapter No 13

WDV Method and Partial Sale

28. Samar Sachdeva purchased measuring instrument for his research laboratory worth Rs 60,000 from Precision Perfect and Co., Paying only one-fourth of the amount by cheque on 1st Oct. 2017, balance payable within a month. On 31st March 2019, he disposed of half the instruments at a profit of Rs 10,000 as his further experiments would not require them. He writes off depreciation at 10%p.a. on written down the value on 31st March every year.
Show the Instruments account from the date of purchase up to the years ending 31st March 2019

The solution of Question No 28 Chapter No 13:-

 Dr. Machine A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/10/17 To Cash A/c 15,000 31/03/18 By Deprecation A/c*1 3,000 01/10/17 To Precision Perfect & Co A/c 45,000 31/03/18 By Balance C/d 57,000 60,000 60,000 01/04/18 To Balance b/d 57,000 31/03/19 By Depreciation A/c*2 57,00 31/03/19 To Profit/Loss A/c 10,000 31/03/19 By Bank A/c 35,650 31/03/19 By Balance C/d 25,650 67,000 67,000

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Oct 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 60,000
Rate of Depreciation = 10%
Period = from 01/10/2017 to 31/03/2018 i.e. 6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 60,000 X 10/100 X 6/ 12
Depreciation = 3,000
Total Depreciation for the year = 3,000

*2:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 57,000
Rate of Depreciation = 10%
Period = from 01/04/2018 to 31/03/2019  i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 57,000 X 10/100 X 12/ 12
Depreciation = 5,700
Total Depreciation for the year = 5,700

 Statement Showing profit or loss on the sale of Machinery Particulars Amount Purchase value of machinery as on 1st October 2017 30,000 Less: – Amount of Depreciation charged on the year 2017-18 30,000 *10%* 6/12 1,500 Amount of Depreciation charged on the year 2018-19 28,500 *10%* 12/12 2,850 Book value of an asset as on 31st March 2019 25,650 Sale Price of Machinery 35,650 Profit on the sale of the asset 10,000

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)