Question No 32 Chapter No 12

Question No 32 Chapter No 12

32. On 1st September 2016, Gopal Ltd. purchased a plant for 10,20,000. On 1st July 2017 another plant was purchased for 6,00,000. The firm writes off depreciation @ 10% p.a. on original cost and its accounts are closed every year on 31st March. On 1st October 2014, a part of the second plant purchased on 1st July 2017 for 1,80,000 was sold for 1,10,000. On 1st December 2019, another plant was purchased for 3,00,000.
Prepare Plant Account, Provision for Depreciation Account and Plant Disposal Account.

The solution of Question No 32 Chapter No 12: –

Dr.Plant A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Sep.2016To Bank A/c 10,20,000    
    31st Mar 2017By Balance C/d  10,20,000
   10,20,000   10,20,000
1st Apr.2017To Balance b/f 10,20,000    
1st Jul.2017To Bank A/c (1,80,000 + 4,20,000 ) 6,00,00031st Mar 2018
By Balance C/d
 16,20,000
   16,20,000
   16,20,000
1st Apr.2018To Balance b/f 16,20,000    
    31st Mar 2019
By Balance C/d
 16,20,000
   16,20,000   16,20,000
1st Apr.2019To Balance b/f 16,20,00031st Oct 2019By Plant Disposal A/c 1,80,000
1st Dec.2019To Bank A/c 3,00,000    
    31st Mar 2020
By Balance C/d
 17,40,000
   19,20,000
   19,20,000
Dr.Plant Disposal A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
1st Oct 2019To Plant A/c 1,80,0001st Oct 2019By Provision for Depreciation A/c 40,500
    1st Oct 2019By Bank A/c (Sale) 1,10,000
    1st Oct 2019By Profit & Loss A/c 29,500
   1,80,000   1,80,000
Dr.Provision for Depreciation  A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
    31st Mar 2017By Depreciation A/c (7 Months) 59,500
31stMar.2017Balance c/d 59,500    
   59,500   59,500
    31st Apr 2017By Balance b/d 59,500
31st Mar.2018Balance c/d 2,06,500
31st Mar 2018By Depreciation A/c (1,02,000 + 13,500 + 31,500) 1,47,000
   2,06,500   2,06,500
    31st Apr 2018By Balance b/d 2,06,500
31stMar.2020To Balance b/f 3,68,500
31st Mar.2019By Depreciation A/c (1,02,000 + 18,000 + 42,000) 1,62,000
   3,68,500   3,68,500
31stOct.2019To Plant A/c (13,500 + 18,000 +19,000) 1,38,00031st Apr 2019By Balance b/d 3,68,500
    1st Oct 2019By Depreciation A/c (6 Months) 9,000
31stMar.2020To Balance b/f 4,9,1000
31st Mar.2019By Depreciation A/c (1,02,000 + 42,000 + 10,000) 1,54,000
   5,31,500
   5,31,500

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 Jul. 20171,80,000
Less: – Amount of Depreciation charged on the year 2017-18 
1,80,000 *10%* 9/1213,500
Amount of Depreciation charged on the year 2018-19 
1,80,000 *10%* 12/1218,000
Amount of Depreciation charged on the year 2019-20 
1,80,000 *10%* 6/129,000
Book value of asset as of 31st May 20191,39,500
Sale Price of Machinery 1,10,000
Loss on the sale of the asset29,500

Note: In order to make an easy calculation, the plant purchased on July 01, 2012, has been divided into two parts i.e. P2 and P3.
Thus,
P2: Rs 1,80,000 (sold for Rs 1,10,000 on Oct. 01, 2014)
P3: Rs 4,20,000

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 32 Chapter No 12 - D.K Goal 11 Class
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