Question No 34 Chapter No 14 – T.S. Grewal 11 Class

Question No 34 Chapter No 14

Question No 34 Chapter No 14

34. Sharma & Co. whose books are closed on 31st March purchased a piece of machinery for ₹ 1,50,000 on 1st April 2015, Additional machinery was acquired for ₹ 50,000 on 1st October 2015. Certain machinery which was purchased for ₹ 50,000 on 1st October 2015 was sold for ₹ 40,000 on 30th September 2017.
Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st March, 2018. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account
The solution of Question No 34 Chapter No 14: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/15 To Bank A/c   1,50,000        
01/10/15 To Bank A/c   50,000 31/03/16 By Balance C/d   2,00,000
      2,00,000       2,00,000
01/04/16 To Balance b/d   2,00,000        
        31/03/17 By Balance C/d   2,00,000
      2,00,000       2,00,000
01/04/17 To Balance b/d   2,00,000 31/03/18 By Machinery Disposal A/c   50,000
        31/03/18 By Balance C/d   1,50,000
      2,00,000       2,00,000

 

Dr. Accumulated Depreciation Account A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
        31/03/15 By Deprecation A/c*1   17,500
31/03/16 To Balance c/d   17,500        
      17,500       17,500
        31/03/16 To Balance b/d   17,500
01/04/17 To Balance c/d   37,500 31/03/16 By Deprecation A/c*2   20,000
      37,500       37,500
30/09/13 To Machinery disposal A/c   10,000 01/12/17 To Balance b/d   37,500
        30/09/17 By Deprecation A/c   2,500
31/03/18 To Balance c/d   45,000 31/03/18 By Deprecation A/c*3   15,000
      55,000       55,000

 

Dr. Machinery Disposal Account Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
30/09/17 To Machinery A/c   50,000 01/01/14 By Accumulated Depreciation A/c   10,000
        01/01/14 By Bank A/c   40,000
      50,000       50,000

 

 

Working Note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,50,000
Rate of Depreciation = 10%
Period = from 01/04/2015 to 31/03/2016 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,50,000 X10/100 X 12/12
Depreciation = 15,000
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset =,50,000
Rate of Depreciation = 10%
Period = from 01/10/2015 to 31/03/2016 i.e.6months
(from the date of purchase/Beginning balance to the end of the financial year)
=50,000 X10/100 X 6/12
Depreciation = 2,500
Total Depreciation for the year = 17,500


*2:- Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,50,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to the end of the financial year)
=1,50,000 X10/100 X 12/12
Depreciation = 15,000
Purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset =50,000
Rate of Depreciation = 10%
Period = from 01/10/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to end of the financial year)
=50,000 X10/100 X 6/12
Depreciation = 5,000
Total Depreciation for the year = 20,000

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of machinery as on 1st October 2015 50,000
Less: – Amount of Depreciation charged on the year 2015-16  
50,000*10%*6/12 2,500
 Amount of Depreciation charged on the year 2016-17  
50,000*10%*12/12 5,000
 Amount of Depreciation charged on the year 2017-18  
50,000*10%*6/12 2,500
Book value of an asset as on 1st December 2017 40,000
Sale Price of Machinery 40,000
Loss on the sale of the asset



*3:– Calculation of the amount of Depreciation on furniture for the year 2016-17
Purchased on 1st April 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 1,50,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/03/2017 i.e.12months
(from the date of purchase/Beginning balance to end of the financial year)
=1,50,000 X10/100 X 12/12
Depreciation =  15,000
Total Depreciation for the year = 20,000

Depreciation | Meaning | Methods | Examples

Thanks, Please Like and share with your friends  

Comment if you have any question.

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. Grewals Double Entry Book Keeping - Question No 34 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.