Question No 38 Chapter No 12

Question No 38 Chapter No 12

38. On April 01, 2016, Jain & Sons purchased a second-hand plant costing 2,00,000 and spent 10,000 on its overhauling. It also spent 5,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on Oct. 31, 2019, and an insurance claim of 50,000 was admitted by the insurance company. Prepare plant account assuming that the company closes its books on March 31, every year.

The solution of Question No 38 Chapter No 12: –

Dr.Plant A/cCr.
1st Apr.2016To Bank A/c(2,00,000 + 10,000 + 5,000) 2,15,00031st Mar 2017By Deprecation A/c 43,000
    31stMar2017By Balance C/d  1,72,000
   2,15,000   2,15,000
1st Apr.2017To Balance b/f 1,72,00031st Mar 2018By Deprecation A/c 34,400
    31st Mar2018By Balance C/d  1,37,600
1st Apr.2018To Balance b/f 1,37,60031st Mar 2019By Deprecation A/c 27,520
    31st Mar 2019
By Balance C/d
1st Apr.2019To Balance b/f 1,10,0801st Oct 2019By Deprecation A/c 12,843
    1st Oct 2019By Statement of profit & Loss (loss by fire) 47,237
    1st Oct 2019By Insurance claim A/c 50,000
   1,10,080   1,10,080

Working Note:
Calculation of Profit or Loss on Sale M1

Statement Showing the Profit and loss on the sale of Plant
Machinery Purchase on of Equipment as on 1st Jan. 20191,10,080
Less: Depreciation for 7 months12,843
Book value of asset as on 1st Oct, 201997,237
Less: Insurance claim received50,000
Loss by fire transferred to Profit & Loss A/c47,237

Depreciation | Meaning | Methods | Examples

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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ISC Accounts 11 20 Image min 197x300 - Question No 38 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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