# Question No 30 Chapter No 12 – D.K Goal 11 Class

Question No 30 Chapter No 12

30.Books of Mumbai Chemicals Ltd. showed the following balances on 1st April 2019:

 Machinery Account 10,00,000 Provision for Depreciation on Furniture Account 4,05,000

On 1st April, 2019, a machine which had a cost of 2,00,000 on 1st October, 2016 was sold for 80,000. The firm writes off depreciation @ 10% p.a. under the Reducing Balance Method and its accounts are made up on 31st March each year. You are required to prepare the Machinery A/c and Provision for Depreciation A/c for the year ending 31st March, 2020.

## The solution of Question No 30 Chapter No 12: –

 Dr. Machinery A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Apr.2018 To Balance b/f(8,00,000 + 2,00,000) 10,00,000 1st Apr.2019 By Provision forDepreciation A/c 46,100 1st Apr.2019 By Bank A/c (Sale) 80,000 1st Apr.2019 By Profit & Loss A/c 73,900 31st Mar 2019 By Balance C/d 8,00,000 10,00,000 10,00,000
 Dr. Provision for Depreciation  A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 31stApr.2019 To Machinery A/c 46,100 31stApr.2018 By Balance b/d (46,100 + 3,28,900) 4,05,000 31stApr.2019 By Depreciation A/c* 44,110 31stMar.2019 Balance c/d 18,250 4,49,110 4,49,110

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 Oct. 2016 2,00,000 Less: – Amount of Depreciation charged on the year 2016-17 2,00,000 *10%* 6/12 10,000 Amount of Depreciation charged on the year 2017-18 1,90,000 *10%* 12/12 19,000 Amount of Depreciation charged on the year 2018-19 1,71,000 *10%* 12/12 17,100 Book value of asset as on 1st Apr, 2019 1,53,900 Sale Price of Machinery 80,000 Loss on the sale of the asset 73,900

Depreciation | Meaning | Methods | Examples

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