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Question No 31 Chapter No 14 – T.S. Grewal 11 Class

Question No 31 Chapter No 14
Question No.31 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 31 Chapter No 14

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31. Shakti Cements purchased on 1st April, 2015 a plant for ₹ 80,000. On 1st July, 2016, it purchased additional plant costing ₹ 48,000. On 1st December, 2017, the plant purchased on 1st April, 2015 was sold for ₹ 42,000 plus IGST @ 12% and on the same date a fresh plant was purchased for ₹ 75,000 plus CGST and SGST @ 6% each. Depreciation is provided at 10% p.a. on the Diminishing Balance Method. Accounts are closed on 31st March each year. Show the plant Account for 3 years (along with working notes).


The solution of Question No 31 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/15To Bank A/c 80,00031/03/16By Deprecation A/c 8,000
    31/03/16By Balance C/d 72,000
   80,000   80,000
01/04/16To Balance b/d 72,00031/03/17By Deprecation A/c*1 10,800
01/07/16To Bank A/c 48,00031/03/17By Balance C/d 1,09,200
   1,20,000   1,20,000
01/04/17To Balance b/d 1,09,20001/12/17By Deprecation A/c 4,320
01/12/17To Bank A/c 75,00001/12/17By Bank A/c 42,000
    01/12/17By Loss on sale of Machine A/c 18,480
    31/03/18By Deprecation A/c*2 6,940
    31/03/18By Balance C/d 1,12,460
   1,84,200
   1,84,200

 

Working Note:-`

*1:– Calculation of the amount of Depreciation on Machine for the year 2016-17
 Purchased on 1st April 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 72,000
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)
=72,000 X10/100 X 12/12
Depreciation =7,200
Purchased on 1st July 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 48,000
Rate of Depreciation = 10%
Period = from 01/07/2016 to 31/03/2017 i.e.9months
(from the date of purchase/Beginning balance to the end of the financial year)
=48,000 X10/100 X 12/12
Depreciation = 3,600
Total Depreciation for the year = 10,800

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Purchase value of machinery as on 1st April 201580,000
Less: – Amount of Depreciation charged on the year 2015-16 
80,000*10%*12/128,000
 Amount of Depreciation charged on the year 2016-17 
72,000*10%*12/127,200
 Amount of Depreciation charged on the year 2017-18 
64,800*10%*8/124,320
Book value of the asset as on 1st March 201762,480
Sale Price of Machinery 42,000
Loss on the sale of the asset18,480

*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Purchased on 1st July 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 44,400
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)
=44,400 X10/100 X 12/12
Depreciation = 4,440
Purchased on 1st December 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 75,000
Rate of Depreciation = 10%
Period = from 01/12/2017 to 31/03/2018 i.e.4months
(from the date of purchase/Beginning balance to the end of the financial year)
=75,000 X10/100 X 4/12
Depreciation = 2,500
Total Depreciation for the year = 6,940


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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