# Question No 34 Chapter No 12 – D.K Goal 11 Class

Question No 34 Chapter No 12

34. On 1st Jan. 2017, Panjim Dryfruits Ltd. bought a plant for 15,00,000. The company writes off depreciation @ 20% p.a. on Written Down Value Method and closes its books on 31st March every year. On 1st Oct. 2019, a part of the plant purchased on 1st Jan. 2020 for 3,00,000 was sold for 1,75,000. On 1st Jan. 2020 a fresh plant was purchased for 5,00,000. Prepare Plant A/c, Provision for Dep. A/c and Plant Disposal A/c.

## The solution of Question No 34 Chapter No 12: –

 Dr. Plant A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Jan.2017 To Bank A/c (3,00,000 + 12,00,000) 15,00,000 31st Mar 2017 By Balance C/d 15,00,000 15,00,000 15,00,000 1st Apr.2017 To Balance b/f 15,00,000 31st Mar 2018 By Balance C/d 15,00,000 15,00,000 15,00,000 1st Apr.2018 To Balance b/f 15,00,000 31st Mar 2019 By Balance C/d 15,00,000 15,00,000 15,00,000 1st Apr.2019 To Balance b/f 15,00,000 31st Oct 2019 By Plant Disposal A/c 3,00,000 1st Jan.2020 To Bank A/c 5,00,000 31st Mar 2020 By Balance C/d 17,00,000 20,00,000 20,00,000
 Dr. Plant Disposal A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Oct 2019 To Plant A/c 3,00,000 1st Oct 2020 By Provision for Depreciation A/c 1,35,840 1st Oct 2020 To Profit & Loss A/c 10,840 1st Oct 2020 By Bank A/c (Sale) 1,75,000 3,10,840 3,10,840
 Dr. Provision for Depreciation  A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 31st Mar 2018 By Depreciation A/c (15,000 + 60,000) 75,000 31stMar.2018 Balance c/d 75,000 75,000 75,000 31st Apr 2018 By Balance b/d 75,000 31st Mar.2018 Balance c/d 3,60,000 31st Mar 2018 By Depreciation A/c (57,000 + 2,28,000) 2,85,000 3,60,000 3,60,000 31st Apr 2018 By Balance b/d 3,60,000 31stMar.2019 Balance c/d 5,88,000 31st Mar 2019 By Depreciation A/c (45,600 + 1,8,2,400) 2,28,000 5,88,000 5,88,000 31stOct.2019 To Machine Disposal A/c 1,35,840 31st Apr 2019 By Balance b/d 5,88,000 1st Oct 2019 By Depreciation A/c (6 Months) 18,240 31stMar.2020 To Balance b/f 6,41,230 31st Mar.2019 By Depreciation A/c (1,45,920 + 25,000) 1,70,920 7,77,160 7,77,160

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 Jun. 2017 3,00,000 Less: – Amount of Depreciation charged on the year 2017-18 3,00,000 *20%* 3/12 15,000 Amount of Depreciation charged on the year 2017-18 2,85,000 *20%* 12/12 57,000 Amount of Depreciation charged on the year 2018-19 2,28,000 *20%* 12/12 45,600 Amount of Depreciation charged on the year 2019-20 1,82,400 *20%* 3/12 18,240 Book value of asset as of 1st Oct 2019 1,64,160 Sale Price of Machinery 1,75,000 Profit on the sale of the asset 10,840

Note: In order to make easy calculation, the plant purchased on Jan 01, 2012, has been divided into two parts i.e.
P1 and P2. Thus,
P1: Rs 3,00,000 (sold for Rs 1,75,000 on Oct. 01, 2014)
P2: Rs 12,00,000

Depreciation | Meaning | Methods | Examples

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