Question No 31 Chapter No 13 – USHA Publication 11 Class

Question No 31 Chapter No 13

Question No 31 Chapter No 13

WDV Method and Partial Sale

31. Chetan Printer purchased a machinery for Rs 50,000 on 1st October 2016. Another machinery costing Rs 10,000 was purchased on 1st December 2017,. On 31st March 2019, the machinery purchased in December 2017, was sold at a loss of Rs 5,000. the firm charges depreciation at the rate of 15% p.a. on diminishing balance method. Accounts are closed on 31ts March each years.Prepare the machinery Account for three years

The solution of Question No 31 Chapter No 13:-  

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/10/16 To Cash A/c   50,000 31/03/17 By Deprecation A/c*1   3,750
        31/03/17 By Balance C/d   46,250
      50,000       50,000
01/04/17 To Balance b/d   46,250 31/03/18 By Depreciation A/c*2   7,437.50
 01/12/17 To Bank A/c   10,000 31/03/18 By Balance C/d   48,812.50
      56,250       56,250
01/04/18 To Balance b/d   48,812.50 31/03/19 By Bank A/c   3,360
        31/03/19  By Depreciation A/c   7,486.87
        31/03/19  By Profit/Loss A/c   5,000
        31/03/18 By Balance C/d   32,965.63
      48,812.50       48,812.50

Note: In this question, the answer did not match the answer given in the book because the answer given in the book is wrong. The Correct Answer is given above. If use wont to find the answer same than you can do by the sale of the machinery purchased on 1st October 2016, then the answer will come

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 50,000
Rate of Depreciation = 15%
Period = from 01/10/2016 to 31/03/2017 i.e. 6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 50,000 X 15/100 X 3/ 12
Depreciation = 3,750
Total Depreciation for the year = 3,750

 

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 46,250
Rate of Depreciation = 15%
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)
= 46,250 X 15/100 X 3/ 12
Depreciation = 6,937.50
Machinery purchased on 1st Dec 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 10,000
Rate of Depreciation = 15%
Period = from 01/12/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 10,000 X 15/100 X 3/ 12
Depreciation = 500
Total Depreciation for the year = 7,437.50

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st Dec 2017 10,000
Less: – Amount of Depreciation charged on the year 2017-18  
10,000 *15%* 4/12 500
 Amount of Depreciation charged on the year 2018-19  
9,500 *15%* 12/12 1,140
Book value of an asset as on 31st March 2019 8,360
Sale Price of Machinery 3,360
Profit on the sale of the asset 5,000

*3:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 42,312.50
Rate of Depreciation = 15%
Period = from 01/04/2018 to 31/03/2019 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 42,312.50 X 15/100 X 9/ 12
Depreciation = 6,346.87
Total Depreciation for the year = 6,346.87

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)

 

Chapter No. 16 – Financial Statements – (With Adjustments)

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