Question No 6 Chapter No 14 – T.S. Grewal 11 Class

Question No 6 Chapter No 14

Question No 6 Chapter No 14

6. An asset was purchased for Rs 10,500 on 1st April 2011. The scrap value was estimated to be Rs 500 at the end of the asset’s 10 years ‘life. Straight Line method of the Depreciation was used. The accounting year ends on 31st March every year. The asset was sold for Rs 600 on 31st March 2018. calculation the following:
The Depreciation expense for the year ended 31st March 2012
The netbook value of the asset on 31st March 2016.
The gain or loss on the sale of the asset on 31st March 2012

The solution of Question No 6 Chapter No 14: –

Dr. Machine A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/04/11 To Cash A/c   10,500 31/03/12 By Deprecation A/c   1,000
        31/03/12 By Balance C/d   9,500
      10,500       10,500
01/04/12 To Balance b/d   9,500 31/03/13 By Deprecation A/c   1,000
        31/03/13 By Balance C/d   8,500
      9,500       9,500
01/04/13 To Balance b/d   8,500
31/03/14 By Deprecation A/c   1,000
        31/03/14 By Balance C/d   7,500
      8,500
      8,500
01/04/14 To Balance b/d    7,500
31/03/15 By Deprecation A/c   1,000
        31/03/15 By Balance C/d   6,500
      7,500
      7,500
01/04/15 To balance b/d   6,500
31/03/16 By Deprecation A/c   1,000
        31/03/16 By Balance C/d   5,500
      6,500
      6,500
01/04/16 To Balance b/d   5,500
31/03/17 By Deprecation A/c   1,000
        31/03/17 By Balance C/d   4,500
      5,500
      5,500
01/04/17 To Balance b/f   4,500
31/03/18 By Deprecation A/c   1,000
        31/03/18 By Cash A/c   900
        31/03/18 By loss on sale on Machine A/c   2,900
      4,500
      4,500

Working note:-

Amount of Depreciation =  Cost of assets- Estimated Realizable or Scrap value
Number of years of expected useful life

Cost of assets = 10,500
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 500

Amount of Depreciation = 10,500 – 500 = 1,000 per year
            10

 

Statement Showing profit or loss on the sale of Machinery Cr.
Particulars
Amount
Book value of machinery as on 1st April 2012 when it was purchased 10,500
Less: – Amount of Depreciation charged on the year 2011-12 1,000
   Amount of Depreciation charged on the year 2012-13 1,000
   Amount of Depreciation charged on the  year 2013-14 1,000
   Amount of Depreciation charged on the year 2014-15 1,000
   Amount of Depreciation charged on the year 2015-16 1,000
   Amount of Depreciation charged on the year 2016-17 1,000
   Amount of Depreciation charged on the year 2017-18 1,000
Sale Price of Machinery 600
Loss on the sale of the asset 2,900



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 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

Check out T.S. Grewal +1 Book 2019 @ Official Website of Sultan Chand Publication

T.S. Grewals Double Entry Book Keeping - Question No 6 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

Leave a Reply

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