# Question No 29 Chapter No 14 – T.S. Grewal 11 Class

Question No.29 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Question No 29 Chapter No 14

29. Astha Engineering Works purchased a machine on 1st July 2015 for ₹ 1,80,000 and spent ₹ 20,000 on its installation. On 1st April 2016, if purchased another machine for ₹ 2,40,000. On 1st October 2017, the machine purchased on 1st July 2015 was sold for ₹ 1,45,000. On 1st January 2018, another machine was purchased for ₹ 4,00,000 plus IGST @ 12%. Prepare the Machinery Account for the years ended 31st March 2016 to 2018 after charging Depreciation @ 10% p.a. by Diminishing Balance Method. Accounts are closed on 31st March every year.

The solution of Question No 29 Chapter No 14: –

 Dr. Machinery A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/07/15 To Bank A/c 2,00,000 31/03/16 By Deprecation A/c*1 15,000 31/03/16 By Balance C/d 1,85,000 2,00,000 2,00,000 01/04/16 To Balance b/d 1,85,000 31/03/17 By Deprecation A/c*2 42,500 01/04/16 To Bank A/c 2,40,000 31/03/17 By Balance C/d 3,82,500 4,25,000 4,25,000 01/04/17 To Balance b/d 3,82,500 01/10/17 By Deprecation A/c 8,325 01/01/18 To Bank A/c 4,00,000 01/10/17 By Bank A/c 1,45,000 01/10/17 By Loss on sale of Machine A/c 13,175 31/03/18 By Deprecation A/c*3 31,600 31/03/18 By Balance C/d 5,84,400 7,82,500 7,82,500

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2015-16
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/07/2010 to 31/03/2011 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 9/12
Depreciation =15,000
Total Depreciation for the year = 15,000

*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st July 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,85,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 12/12
Depreciation = 18,500
Purchased on 1st April 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,40,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,40,000 X10/100 X 12/12
Depreciation = 24,000
Total Depreciation for the year = 42,500

 Statement Showing profit or loss on the sale of Machinery Particulars Amount Purchase value of machinery as on 1st July 2015 2,00,000 Less: – Amount of Depreciation charged on the year 2015-16 2,00,000*10%*9/12 15,000 Amount of Depreciation charged on the year 2016-17 1,85,000*10%*12/12 18,500 Amount of Depreciation charged on the year 2017-18 1,66,500*10%*6/12 8,325 Book value of the asset as on 1st March 2017 1,58,175 Sale Price of Machinery 1,45,000 Loss on the sale of the asset 13,175

*3:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Purchased on 1st April 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,16,000
Rate of Depreciation = 10%
Period = from 01/04/2010 to 31/03/2011 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,16,000 X10/100 X 12/12
Depreciation = 21,600
Purchased on 1st January 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/01/2018 to 31/03/2018 i.e.3months
(from the date of purchase/Beginning balance to the end of the financial year)
=4,00,000 X10/100 X 3/12
Depreciation = 10,000
Total Depreciation for the year = 31,600

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