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

Question No 30 Chapter No 12

Question No 30 Chapter No 12

Free Accounting book Solution - Class 11 and Class 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 for
Depreciation 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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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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ISC Accounts 11 20 Image min 197x300 - Question No 30 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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