Question No 35 Chapter No 13 – USHA Publication 11 Class

Question No 35 Chapter No 13

Question No 35 Chapter No 13

Creation of Provision for Depreciation Account

35. Chander Mani purchased scientific instruments for Rs 3,00,000 on 1st April 2016 Depreciation was charged @10% p.a. on original cost and transferred to provision for depreciation account.Prepare Scientific Instruments Account and provision for Depreciation account for 2 years when books are closed on 31st March every year.

The solution of Question No 35 Chapter No 13:-  

Dr. Scientific Instruments A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/16 To Bank A/c   3,00,000        
        31/03/17 By Balance C/d   3,00,000
      3,00,000       3,00,000
01/04/16 To Balance b/d   3,00,000        
        31/03/18 By Balance C/d   3,00,000
      3,00,000       3,00,000

 

Dr. Provision for Depreciation A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
        01/03/17 By Depreciation A/c*1   30,000
01/03/17 To Balance c/d   30,000        
      30,000       30,000
        01/04/17 By Balance b/f   30,000
        01/03/18 By Depreciation A/c   30,000
01/03/18 To Balance c/d   60,000        
      30,000       60,000

 


Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2015-16
Machinery purchased on 1st Apr 2016
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 3,00,000
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)
= 3,00,000 X 10/100 X 12/ 12
Depreciation = 30,000

Depreciation | Meaning | Methods | Examples

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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

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 

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)

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

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