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Question No 32 Chapter No 13 – USHA Publication 11 Class

Question No 32 Chapter No 13
Q-32 - CH-13 - USHA +1 Book 2020 - Solution

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Question No 32 Chapter No 13

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WDV Method and Partial Sale

32.Suleka Sons, whose accounting years is financial years purchased on 1st July 2015, machinery costing Rs 60,000. it purchased further on 1st January 2016, costing Rs 40,000 and on 1st October 2016, costing Rs 20,000. on 1st April 2017, one-third of the machinery installed on 1st July 2015 became obsolete and was sold for Rs 6,000
Show machinery account as it would appear in the books of the firm if the machinery was depreciated by diminishing balance method 10%

The solution of Question No 32 Chapter No 13

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/07/15To Cash A/c 60,00031/03/16By Deprecation A/c*1 5,500
01/01/16To Bank A/c 40,00031/03/16By Balance C/d 94,500
   1,00,000   1,00,000
01/04/16To Balance b/d 94,50031/03/17By Depreciation A/c*2 10,450
01/07/16To Bank A/c 20,00031/03/17By Balance C/d 1,04,050
   1,14,500   1,14,500
01/04/17To Balance b/d 1,04,05001/04/17By Bank A/c 6,000
    01/04/17By Profit/Loss A/c 10,650
    31/03/18By Depreciation A/c*3 8,740
    31/03/18By Balance C/d 78,660
   1,04,050   1,04,050

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16 
Machinery purchased on 1st Jul 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 60,000
Rate of Depreciation = 10%
Period = from 01/07/2015 to 31/03/2016 i.e. 9 months
(from the date of purchase/Beginning balance to end of the financial year)
= 60,000 X 10/100 X 9/ 12
Depreciation = 4,500
Machinery purchased on 1st Jan 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 40,000
Rate of Depreciation = 10%
Period = from 01/01/2016 to 31/03/2016 i.e. 3 months
(from the date of purchase/Beginning balance to end of the financial year)
= 40,000 X 10/100 X 3/ 12
Depreciation = 1,000
Total Depreciation for the year = 5,500

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*2:- Calculation of the amount of Depreciation on furniture for the year 2017-18
Machinery purchased on 1st Jul 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 55,500
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017  i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 55,500 X 10/100 X 12/12
Depreciation = 5,550
Machinery purchased on 1st Jan 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 39,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017  i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 39,000 X 10/100 X 12/12
Depreciation = 3,900
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 20,000
Rate of Depreciation = 10%
Period = from 01/10/2016 to 31/03/2017 i.e. 6 months
(from the date of purchase/Beginning balance to end of the financial year)
= 20,000 X 10/100 X 6/ 12
Depreciation = 1,000
Total Depreciation for the year = 10,450

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Purchase value of machinery as on 1st July 2015 1/320,000
Less: – Amount of Depreciation charged on the year 2015-16 
20,000 *10%* 9/121,500
 Amount of Depreciation charged on the year 2016-17 
18,500 *10%* 12/121,850
Book value of the asset as on 1st April 201716,650
Sale Price of Machinery 6,000
Loss on the sale of the asset10,650

*3:- Calculation of the amount of Depreciation on furniture for the year 2018-19
Machinery purchased on 1st Jul 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 33,300
Rate of Depreciation = 10%
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)
= 33,300 X 10/100 X 12/ 12
Depreciation = 3,330
Machinery purchased on 1st Jan 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 35,100
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to end of the financial year)
= 35,100 X 10/100 X 12/ 12
Depreciation = 3,510
Machinery purchased on 1st Oct 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 19,000
Rate of Depreciation = 10%
Period = from 01/10/2017 to 31/03/2018 i.e. 12 months
(from the date of purchase/Beginning balance to end of the financial year)
= 19,000 X 10/100 X 12/ 12
Depreciation = 1,900
Total Depreciation for the year = 8,740+

This is all about the Question No 32 Chapter No 13 – USHA Publication. You can check out the following article to better understand:

Depreciation | Meaning | Methods | Examples

You Can also read all above articles in Hindi on our Hindi Website

Depreciation – Meaning – Methods – Examples -In Hindi

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Comment if you have any doubt in the Question No 32 Chapter No 13 – USHA Publication.

You can also Check out the solved question of other Chapters: –

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

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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 

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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)

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

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