Question No 7 Chapter No 12 - Unimax 11 Class

Question No 7 Chapter No 12 – Unimax Class 11

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The solution of Question No 7 Chapter No 12 – Unimax Class 11:

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

7. It is estimated by a company that it will require an additional sum of ₹ 3,00,000 after four years to replace its existing plant. It created a specific reserve for the replacement of its plant and appropriated ₹ 75,000 to this reserve each year on 31st March. New plant is purchased for ₹ 3,00,000 after four years. Give necessary journal entries and ledger accounts.

The solution of Question No 7 Chapter No 12 – Unimax Class 11:


Date	Particulars		L.F.	Debit	Credit
1st year
Mar.31	Profit & Loss appropriation A/c	Dr		75,000
	To plant replacement reserve A/c				75,000
	(Being amount transferred to reserve a/c)

2nd year
Mar.31	Profit & Loss appropriation A/c	Dr		75,000
	To plant replacement reserve A/c				75,000
	(Being amount transferred to reserve a/c)

3rd year
Mar.31	Profit & Loss appropriation A/c	Dr		75,000
	To plant replacement reserve A/c				75,000
	(Being amount transferred to reserve a/c)

4th year
Mar.31	Profit & Loss appropriation A/c	Dr		75,000
	To plant replacement reserve A/c				75,000
	(Being amount transferred to reserve a/c)

Mar.31	Plant A/c	Dr		3,00,000
	To Bank A/c				3,00,000
	(Being new plant purchased)

Mar.31	Plant replacement reserve A/c			3,00,000
	To General reserve A/c				3,00,000
	(Being balance of plant replacement reserve account transferred to general reserve A/c)

Dr.	Plant replacement reserve A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1st year				1st year
Mar.31	To Balance c/d		75,000	Mar.31	By p & L A/c		75,000

			75,000				75,000

2nd year				2nd year
Mar.31	To Balance c/d		1,50,000	Apr.1	By Balance b/d		75,000
				Mar.31	By P & L A/c		75,000

			1,50,000				1,50,000

3rd year				3rd year
Mar.31	To Balance c/d		2,50,000	Apri.1	By Balance b/d		1,50,000
				Mar.31	By P & L A/c		75,000

			2,50,000				2,50,000

4th year				4th year
Mar.31	To General reserve A/c		3,00,000	Apr.1	By Balance b/d		2,25,000
				Mar.31	By P & L A/c		75,000

			3,00,000				3,00,000

Dr	Bad debts A/c						Cr
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
4th year
Mar.31	To Bank A/c		3,00,000

It is all about Question No 7 Chapter 12 of Class 11 unimax, If you have any problem please comment below.

Read out the full article to know the meaning of Depreciation

Provisions and Reserves | Meaning | Methods | Examples

Provision and Reserve: Differences with example

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

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Students may choose only one part from 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
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

Question No 7 Chapter No 12 – Unimax 11 Class

The solution of Question No 7 Chapter No 12 – Unimax Class 11:

Advanced Accountancy – Unimax Class 11 – 2021 – Solution.

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