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Question No 35 Chapter No 13
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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 | ||||||
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| 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. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
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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
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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)