Question No 7 Chapter No 11 – Unimax Class 11
A company purchased a small plant on 1st April,2017 for ₹ 45,000. On 1st Oct., 2017 additional plant was purchased costing ₹ 22,500. On 1st Oct., 2018 plant purchased on 1st April, 2017 was sold for ₹ 18,000. On 1st Oct., 2019 a new plant was purchased for ₹ 54,000 and plant purchased on 1st Oct., 2017 was sold for ₹ 18,900. Depreciation is Provid @ 10% p.a. on straight line method every year on 31st March. Prepare the Machinery account up to 31st March,2020.
The solution of Question No 7 Chapter No 11 –
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/04/17 | To Bank A/c | 45,000 | 31/03/18 | By Deprecation A/c | 5,625 | ||
| 01/10/17 | To Bank A/c | 22,500 | 31/03/18 | By Balance C/d | 61,875 | ||
| 67,500 | 67,500 | ||||||
| 01/04/18 | To Balance b/d | 61,875 | 01/10/18 | By Bank A/c | 18,000 | ||
| 01/10/18 | By Profit & Loss A/c | 20,250 | |||||
| 31/03/19 | By Deprecation A/c | 4,500 | |||||
| 31/03/19 | By Balance C/d | 19,125 | |||||
| 61,875 | 61,875 | ||||||
| 01/04/19 | To Balance b/d | 19,125 | 01/10/19 | By Bank A/c | 18,900 | ||
| 01/10/19 | To Bank A/c | 54,000 | 01/10/19 | By Depreciation A/c | 3,825 | ||
| 01/10/19 | To Profit & Loss A/c | 900 | 31/03/20 | By Balance c/d | 51,300 | ||
| 74,025 | 74,025 | ||||||
Working Note:
(1) Annul depreciation on machinery purchases on apr.1, 2017 = ₹ 4,500.
(2) Loss on sale of first machinery = ₹ (38,250-18,000) = ₹ 20,250.
(3) Annual depreciation on second machinery purchases = ₹ 2,250.
(4) Profit on sale of Machinery = (18,900-18,000) = ₹ 900.
(5) Book value of third machinery purchased = ₹ 5,400.
It is all about Question No 7 Chapter 11 of Class 11 unimax, If you have any problem please comment below.
Read out the full article to know the meaning of Depreciation
Depreciation | Meaning | Methods | Examples
Depreciation | Meaning | Methods | Examples
Also, Check out the same article in Hindi from the following link
Depreciation | Meaning | Methods | Examples-in Hindi
Also, Check out the solved question of all Chapters: –
Advanced Accountancy – Unimax Class 11 – 2021 – Solution.
Part-I
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
Students may choose only one part from the Part II and Part III
Part-II
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
Part-III
- Chapter No. 18 – Introduction to Computers and Accounting information System
- Chapter No. 19 – Computerised Accounting
- Chapter No. 20 – Accounting Software: Tally
- Chapter No. 21 – Data Base System
- Chapter No. 22 – Concept of Entity and Relationship