Question No 38 Chapter No 12 – D.K Goal 11 Class

Question No 38 Chapter No 12

Question No 38 Chapter No 12

Free Accounting book Solution - Class 11 and Class 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/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Apr.2016 To Bank A/c(2,00,000 + 10,000 + 5,000)   2,15,000 31st Mar 2017 By Deprecation A/c   43,000
        31stMar2017 By Balance C/d   1,72,000
      2,15,000       2,15,000
1st Apr.2017 To Balance b/f   1,72,000 31st Mar 2018 By Deprecation A/c   34,400
        31st Mar2018 By Balance C/d   1,37,600
      1,72,000
      1,72,000
1st Apr.2018 To Balance b/f   1,37,600 31st Mar 2019 By Deprecation A/c   27,520
        31st Mar 2019
By Balance C/d
  1,10,080
      1,37,600
      1,37,600
1st Apr.2019 To Balance b/f   1,10,080 1st Oct 2019 By Deprecation A/c   12,843
        1st Oct 2019 By Statement of profit & Loss (loss by fire)   47,237
        1st Oct 2019 By 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
Particulars
Amount
Machinery Purchase on of Equipment as on 1st Jan. 2019 1,10,080
Less: Depreciation for 7 months 12,843
Book value of asset as on 1st Oct, 2019 97,237
Less: Insurance claim received 50,000
Loss by fire transferred to Profit & Loss A/c 47,237

Depreciation | Meaning | Methods | Examples

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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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