Question No 41 Chapter No 13 – USHA Publication 11 Class

Question No 41 Chapter No 13

Question No 41 Chapter No 13

Creation of Provision for Depreciation Account

41. On 1st April 2017 Hem Lata purchased 4 machineries for Rs 50,000 each. On 31st March 2019, one machinery was sold for Rs 41,000. depreciation was charged @10% p.a. on the straight-line method
Prepare Machinery account, Machinery Disposal Account and Provision for depreciation Account for 2 years. The account is closed on 31st March every year

The solution of Question No 41 Chapter No 13:-  

Dr. Machinery A/c Cr.
Dat Particulars
J.F. Amount Date Particulars
J.F. Amount
01/03/17 To Balance b/f   2,00,000        
        31/03/18 By Balance C/d   2,00,000
      2,00,000       2,00,000
01/04/18 To Balance b/f   2,00,000 01/03/19 By Machinery Disposal A/c   50,000
        01/04/19 By Balance C/d
  1,50,000
      2,00,000       2,00,000

 

Dr. Provision for Depreciation A/c Cr.
Dat Particulars
J.F. Amount Date Particulars
J.F. Amount
        01/04/018 By Depreciation A/c   20,000
01/04/018 To Balance c/d   20,000        
      20,000       20,000
31/03/19 To Machinery Disposal A/c   10,000 01/03/18 By Balance b/f   20,000
31/03/19 To Balance c/d   30,000 31/03/19 By Depreciation A/c   20,000
      40,000       40,000

 

Dr. Machinery Disposal A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
        01/03/19 By Balance b/f   41,000
        01/03/19 By Provision for Dep. A/c   10,000
31/03/19 To Machinery A/c   50,000        
31/03/19 To Profit/Loss A/c   1,000        
      51,000       51,000

 


Working note:-

Statement Showing profit or loss on the sale of Machinery  
Particulars
Amount
Purchase value of Equipment as on 1st Apr, 2017 50,000
Less: – Amount of Depreciation charged on the year 2017-18  
50,000 *10%* 12/12 5,000
Amount of Depreciation charged on the year 2018-19  
50,000 *10%* 12/12 5,000
Book value of the asset as on 1st March 2018 40,000
Sale Price of Machinery 41,000
Profit on the sale of the asset 1,000

\

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 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)

Leave a Reply

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