Advertisement

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

Question No 6 Chapter No 14
Question No.6 - Chapter No.14- T.S. Grewal +1 Book 2019-SolutionQuestion No.6 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Advertisement

Question No 6 Chapter No 14

Advertisement

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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/11To Cash A/c 10,50031/03/12By Deprecation A/c 1,000
    31/03/12By Balance C/d 9,500
   10,500   10,500
01/04/12To Balance b/d 9,50031/03/13By Deprecation A/c 1,000
    31/03/13By Balance C/d 8,500
   9,500   9,500
01/04/13To Balance b/d 8,500
31/03/14By Deprecation A/c 1,000
    31/03/14By Balance C/d 7,500
   8,500
   8,500
01/04/14To Balance b/d  7,500
31/03/15By Deprecation A/c 1,000
    31/03/15By Balance C/d 6,500
   7,500
   7,500
01/04/15To balance b/d 6,500
31/03/16By Deprecation A/c 1,000
    31/03/16By Balance C/d 5,500
   6,500
   6,500
01/04/16To Balance b/d 5,500
31/03/17By Deprecation A/c 1,000
    31/03/17By Balance C/d 4,500
   5,500
   5,500
01/04/17To Balance b/f 4,500
31/03/18By Deprecation A/c 1,000
    31/03/18By Cash A/c 900
    31/03/18By 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

Advertisement-X

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 MachineryCr.
Particulars
Amount
Book value of machinery as on 1st April 2012 when it was purchased10,500
Less: – Amount of Depreciation charged on the year 2011-121,000
   Amount of Depreciation charged on the year 2012-131,000
   Amount of Depreciation charged on the  year 2013-141,000
   Amount of Depreciation charged on the year 2014-151,000
   Amount of Depreciation charged on the year 2015-161,000
   Amount of Depreciation charged on the year 2016-171,000
   Amount of Depreciation charged on the year 2017-181,000
Sale Price of Machinery 600
Loss on the sale of the asset2,900



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

Advertisement-X

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

T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

Advertisement

Advertisement

error: Content is protected !!