# Question No 30 Chapter No 13 – USHA Publication 11 Class

Q-30 - CH-13 - USHA +1 Book 2020 - Solution

Question No 30 Chapter No 13

WDV Method and Partial Sale

30. On 1st January, 2017, Golden Transport Co. purchased a truck for Rs 4,00,000. on 1st July 2018, this truck was involved in an accident and was completely destroyed and Rs 2,00,000 were received from the insurance Company in full settlement. On the same date, another truck was purchased by the company for Rs 5,00,000. the company writes off 20%p.a. depreciation on written down value method. Account are closed each year on 31st March show the truck Account for the years 2016-17 to 2018-19

The solution of Question No 30 Chapter No 13:-

 Dr. Truck A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/01/17 To Cash A/c 4,00,000 31/03/17 By Deprecation A/c*1 20,000 31/03/17 By Balance C/d 3,80,000 4,00,000 4,00,000 01/04/17 To Balance b/d 3,80,000 31/03/18 By Depreciation A/c*2 76,000 31/03/18 By Balance C/d 3,04,000 3,80,000 3,80,000 01/04/18 To Balance b/d 13,140 31/07/18 By Bank A/c 2,00,000 01/07/18 To Bank A/c 5,00,000 31/07/18 By Depreciation A/c 15,200 31/07/18 By Profit/Loss A/c 88,800 31/03/18 By Depreciation A/c*3 75,000 31/03/18 By Balance C/d 4,25,000 8,04,000 8,04,000

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Machinery purchased on 1st Jan 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,0000
Rate of Depreciation = 20%
Period = from 01/01/2016 to 31/03/2017 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 4,00,000 X 20/100 X 3/ 12
Depreciation = 20,000
Total Depreciation for the year = 20,000

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Jan 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,80,000
Rate of Depreciation = 20%
Period = from 01/04/2017 to 31/03/2018  i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 3,80,000 X 20/100 X 12/ 12
Depreciation = 76,000
Total Depreciation for the year = 76,000

 Statement Showing profit or loss on the sale of Machinery Particulars Amount Purchase value of machinery as on 1st Jan 2017 4,00,000 Less: – Amount of Depreciation charged on the year 2016-17 4,00,000 *20%* 3/12 20,000 Amount of Depreciation charged on the year 2017-18 3,80,000 *20%* 12/12 76,000 Amount of Depreciation charged on the year 2018-19 3,04,000 *20%* 3/12 15,200 Book value of an asset as on 31st March 2019 2,88,800 Sale Price of Machinery 2,00,000 Profit on the sale of the asset 88,800

*3:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Jul 2018
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 5,00,000
Rate of Depreciation = 20%
Period = from 01/07/2018 to 31/03/2019 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 5,00,000 X 20/100 X 9/ 12
Depreciation = 75,000
Total Depreciation for the year = 75,000

Depreciation | Meaning | Methods | Examples

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors

Chapter No. 15 – Financial Statements – (Without Adjustments)