Question No 5 Chapter No 14 – T.S. Grewal 11 Class

Question No 5 Chapter No 14

Question No 5 Chapter No 14

5. From the following transaction of concern, prepare the Machinery account for the year ended 31st March 2018
1st April 2017: purchased a second – hand machinery for Rs 40,000.
1st April 2017: Spent Rs 10,000 on repair for the making it serviceable.
30th September 2017: purchased additional new machinery for Rs 20,000
31st December 2017: Repair and renewals of machinery Rs 3,000*
31st March 2018: Deprecate the machinery at 10% p.a.

The solution of Question No 5 Chapter No 14: –

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/17 To Cash A/c   50,000 31/03/18 By Deprecation A/c *1   6,000
30/9/17 To Cash A/c   20,000 31/03/15 By Balance C/d   64,000
      70,000       70,000

*31st December 2017: Repair and renewals of machinery Rs 3,000
* In This the traction shows the amount spent on repairs and renewals of Machinery the Repair and Renewables is of revenue nature and not capital nature and hence not debited to the Machinery account

Working note:-

*1:- Calculation of the amount of Depreciation on machinery for F/Y 2014-15
Purchased on 1st April 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 50,000
Rate of Depreciation = 5%
Period = from 01/04/17 to 31/03/18 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=50,000 X 10/100 X 12/12
Depreciation =5,000
Purchased 1st October 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 20,000
Rate of Depreciation = 5%
Period = from 30/9/17 to 31/03/18 i.e. 6 months
(from the date of purchase/Beginning balance to end of the financial year)
= 20,000 X 10/100 X 6/12
Depreciation = 1,000
Total Depreciation for the finical year 2014-15 =6,000


Depreciation | Meaning | Methods | Examples

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Also, Check out the solved question of previous Chapters: –

  • Chapter No. 1 – Introduction to Accounting
  • Chapter No. 2 – Basic Accounting Terms
  • Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
  • Chapter No. 4 – Bases of Accounting
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book
  • Chapter No. 11 – Special Purpose Books II – Other Books
  • Chapter No. 12 – Bank Reconciliation Statement
  • Chapter No. 13 – Trial Balance
  • Chapter No. 14 – Depreciation
  • Chapter No. 15 – Provisions and Reserves
  • Chapter No. 16 – Accounting for Bills of Exchange
  • Chapter No. 17 – Rectification of Errors
  • Chapter No. 18 – Financial Statements of Sole Proprietorship
  • Chapter No. 19 – Adjustments in preparation of Financial Statements
  • Chapter No. 20 – Accounts from incomplete Records – Single Entry System
  • Chapter No. 21 – Computers in Accounting
  • Chapter No. 22 – Accounting Software – Tally
  • Chapter No. 5 – Accounting Equation
  • Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
  • Goods and Services Tax(GST)
  • Chapter No. 8 – Journal
  • Chapter No. 9 – Ledger
  • Chapter No. 10 – Special Purpose Books I – Cash Book

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T.S. Grewals Double Entry Book Keeping - Question No 5 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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