Question No 28 Chapter No 14 – T.S. Grewal 11 Class

Question No 28 Chapter No 14

Question No 28 Chapter No 14

28. On 1st October 2010, Meenal Sharma bought a machine for ₹ 25,000 on which he spent ₹ 5,000 for carriage and freight; ₹ 1,000 for the brokerage of the middle-man, ₹ 4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March 2013, the machine was sold to Deepa for ₹ 30,500 and ₹ 500 was paid as commission to a broker through whom the sales were effected. Find out the profit or loss on the sale of the machine if accounts are closed on 31st March, every year.


The solution of Question No 28 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/10/10 To Bank A/c   35,000 31/03/11 By Deprecation A/c*1   1,750
        31/03/11 By Balance C/d   33,250
      35,000       35,000
01/04/11 To Balance b/d   33,250 31/03/12 By Deprecation A/c   3,325
        31/03/12 By Balance C/d   29,925
      33,250       33,250
01/04/12 To Balance b/d   29,925 31/03/13 By Deprecation A/c   2,993
01/03/13 To profit on sale on machine A/c   3,068 31/03/13 By Bank A/c (30,500-500)   30,000
      32,993
      32,993

Working Note:-`

*1:- Calculation of the amount of Depreciation on furniture for the year 2010-11
Purchased on 1st October 2010
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 35,000
Rate of Depreciation = 10%
Period = from 01/10/2010 to 31/03/2011 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=35,000 X10/100 X 9/12
Depreciation =1,750
Total Depreciation for the year = 1,750


Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st October 2010 35,000
Less: – Amount of Depreciation charged on the year 2010-11  
35,000*10%*6/12 1,750
 Amount of Depreciation charged on the year 2011-12  
33,250*10%*12/12 3,325
Amount of Depreciation charged on the year 2012-13  
29,925*10%*12/12 2,993
Add: commission paid 500
Book value of the asset as on 1st March 2017 27,432
Sale Price of Machinery 30,500
Profit on the sale of the asset 3,068



Depreciation | Meaning | Methods | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

Also, Check out the solved question of previous Chapters: –

  • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 28 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.