Question No 32 Chapter No 12 – D.K Goal 11 Class

Question No 32 Chapter No 12

Question No 32 Chapter No 12

Free Accounting book Solution - Class 11 and Class 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/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Sep.2016 To Bank A/c   10,20,000        
        31st Mar 2017 By Balance C/d   10,20,000
      10,20,000       10,20,000
1st Apr.2017 To Balance b/f   10,20,000        
1st Jul.2017 To Bank A/c (1,80,000 + 4,20,000 )   6,00,000 31st Mar 2018
By Balance C/d
  16,20,000
      16,20,000
      16,20,000
1st Apr.2018 To Balance b/f   16,20,000        
        31st Mar 2019
By Balance C/d
  16,20,000
      16,20,000       16,20,000
1st Apr.2019 To Balance b/f   16,20,000 31st Oct 2019 By Plant Disposal A/c   1,80,000
1st Dec.2019 To 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/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Oct 2019 To Plant A/c   1,80,000 1st Oct 2019 By Provision for Depreciation A/c   40,500
        1st Oct 2019 By Bank A/c (Sale)   1,10,000
        1st Oct 2019 By Profit & Loss A/c   29,500
      1,80,000       1,80,000
Dr. Provision for Depreciation  A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
        31st Mar 2017 By Depreciation A/c (7 Months)   59,500
31stMar.2017 Balance c/d   59,500        
      59,500       59,500
        31st Apr 2017 By Balance b/d   59,500
31st Mar.2018 Balance c/d   2,06,500
31st Mar 2018 By Depreciation A/c (1,02,000 + 13,500 + 31,500)   1,47,000
      2,06,500       2,06,500
        31st Apr 2018 By Balance b/d   2,06,500
31stMar.2020 To Balance b/f   3,68,500
31st Mar.2019 By Depreciation A/c (1,02,000 + 18,000 + 42,000)   1,62,000
      3,68,500       3,68,500
31stOct.2019 To Plant A/c (13,500 + 18,000 +19,000)   1,38,000 31st Apr 2019 By Balance b/d   3,68,500
        1st Oct 2019 By Depreciation A/c (6 Months)   9,000
31stMar.2020 To Balance b/f   4,9,1000
31st Mar.2019 By 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. 2017 1,80,000
Less: – Amount of Depreciation charged on the year 2017-18  
1,80,000 *10%* 9/12 13,500
Amount of Depreciation charged on the year 2018-19  
1,80,000 *10%* 12/12 18,000
Amount of Depreciation charged on the year 2019-20  
1,80,000 *10%* 6/12 9,000
Book value of asset as of 31st May 2019 1,39,500
Sale Price of Machinery 1,10,000
Loss on the sale of the asset 29,500

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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