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Question No 32 Chapter No 14 – T.S. Grewal 11 Class

Question No 32 Chapter No 14
Question No.32 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 32 Chapter No 14

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32. Following balances appear in the books of M/s. Amrit as on 1st April 2017:

2017 Rs
1srt AprilMachinery A/c60,000
 Provision for Depreciation A/c36,000

On 1st April 2017, they decided to dispose of machinery for ₹ 8,400 which was purchased on 1st April 2013 for ₹ 16,000. You are required to prepare the Machinery A/c, Provision for Depreciation A/c and Machinery Disposal A/c for the year ended 31st March 2018. Depreciation was charged at 10% on Cost following SLM.


The solution of Question No 32 Chapter No 14: –

Dr.Machinery A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/17To Balance b/d 60,00001/04/17By Machinery Disposal 16,000
    31/03/18By Balance C/d 44,000
   60,000   60,000

 

Dr.

 

Provision for Depreciation Account

 

Cr.

DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/17To Machinery Disposal (4 years) 6,40001/04/17By Balance b/d 36,000
31/03/18To Balance C/d 34,00031/03/18By Depreciation (on Machine costing Rs 44,000) 4,400
   40,400   40,400

 

Dr.Machinery Disposal AccountCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/17To Machinery A/c 16,00001/04/17By Provision for Depreciation A/c 6,400
    01/04/17By Bank A/c 8,400
    01/04/17
By Loss on sale of Machinery A/c
 1,200
   16,000   16,000

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Working Note:-

Statement Showing profit or loss on the sale of Machinery 
Particulars
Amount
Purchase value of machinery as on 1st April 201316,000
Less: – Amount of Depreciation charged on the year 2013-14 
16,000*10%*12/121,600
 Amount of Depreciation charged on the year 2014-151,600
 Amount of Depreciation charged on the year 2015-161,600
 Amount of Depreciation charged on the year 2016-171,600
Book value of the asset as on 1st March 20179,600
Sale Price of Machinery 8,400
Loss on the sale of the asset1,200





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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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