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Question No 30 Chapter No 14 – T.S. Grewal 11 Class

Question No 30 Chapter No 14
Question No.30 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 30 Chapter No 14

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30. A firm purchased on 1st April 2015 certain machinery for ₹ 5,82,000 and spent ₹ 18,000 on its installation. On 1st October 2015, additional machinery costing ₹ 2,00,000 was purchased. On 1st October 2017, the machinery purchased on 1st April 2015 was auctioned for ₹ 2,86,000 plus CGST and SGST @ 6% each and new machinery for ₹ 4,00,000, plus IGST @ 12% was purchased on the same date. Depreciation was provided annually on 31st March at the rate of 10% p.a. on the Written Down Value Method. Prepare the Machinery Account for the three years ended 31st March 2018.


The solution of Question No 30 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Bank A/c 6,00,00031/03/16By Deprecation A/c*1 70,000
01/10/15To Bank A/c 2,00,00031/03/16By Balance C/d 7,30,000
   8,00,000   8,00,000
01/04/16To Balance b/d 7,30,00031/03/17By Deprecation A/c*2 42,500
    31/03/17By Balance C/d 6,57,000
   7,30,000   7,30,000
01/04/17To Balance b/d 6,57,00001/10/17By Deprecation A/c 24,300
01/10/17To Bank A/c 4,00,00001/10/17By Bank A/c 2,86,000
    01/10/17By Loss on sale of Machine A/c 1,75,700
    31/03/18By Deprecation A/c*3 37,100
    31/03/18By Balance C/d 5,33,900
   10,57,000
   10,57,000

 

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2015-16
 Purchased on 1st April 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 6,00,000
Rate of Depreciation = 10%
Period = from 01/04/2015 to 31/03/2016 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=6,00,000 X10/100 X 12/12
Depreciation =60,000
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 01/10/2015 to 31/03/2016 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=2,00,000 X10/100 X 12/12
Depreciation = 10,000
Total Depreciation for the year = 70,000



*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
 Purchased on 1st April,2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 5,40,000
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)
=5,40,000 X10/100 X 12/12
Depreciation = 54,000
 Purchased on 1st October,2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,90,000
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)
=1,90,000 X10/100 X 12/12
Depreciation = 19,000
Total Depreciation for the year = 73,000


Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Purchase value of machinery as on 1st April 20156,00,000
Less: – Amount of Depreciation charged on the year 2015-16 
6,00,000*10%*12/1260,000
 Amount of Depreciation charged on the year 2016-17 
5,40,000*10%*12/1254,000
 Amount of Depreciation charged on the year 2017-18 
4,86,000*10%*6/1224,300
Book value of the asset as on 1st March 20174,61,700
Sale Price of Machinery 2,86,000
Loss on the sale of the asset1,75,700

*3:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,71,000
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)
=1,71,000 X10/100 X 12/12
Depreciation = 17,100
Purchased on 1st October 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 4,00,000
Rate of Depreciation = 10%
Period = from 01/10/2017 to 31/03/2018 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=4,00,000 X10/100 X 6/12
Depreciation = 20,000
Total Depreciation for the year = 37,100



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

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T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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