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

Question No 28 Chapter No 14
Question No.28 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 28 Chapter No 14

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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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/10/10To Bank A/c 35,00031/03/11By Deprecation A/c*1 1,750
    31/03/11By Balance C/d 33,250
   35,000   35,000
01/04/11To Balance b/d 33,25031/03/12By Deprecation A/c 3,325
    31/03/12By Balance C/d 29,925
   33,250   33,250
01/04/12To Balance b/d 29,92531/03/13By Deprecation A/c 2,993
01/03/13To profit on sale on machine A/c 3,06831/03/13By 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 201035,000
Less: – Amount of Depreciation charged on the year 2010-11 
35,000*10%*6/121,750
 Amount of Depreciation charged on the year 2011-12 
33,250*10%*12/123,325
Amount of Depreciation charged on the year 2012-13 
29,925*10%*12/122,993
Add: commission paid500
Book value of the asset as on 1st March 201727,432
Sale Price of Machinery 30,500
Profit on the sale of the asset3,068



Depreciation | Meaning | Methods | Examples

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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. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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