Question No 7 Chapter No 14 – T.S. Grewal 11 Class

Question No.7 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Question No 7 Chapter No 14

7. A Van was purchased on 1st April 2015 for Rs 60,000 and Rs 5,000 spent on its repair and registration. On 1st October 2016, another van was purchased for Rs 70,000. On 1st April 2017, the first van was purchased on 1st April 2015 was sold for Rs 45,000 and new van costing Rs 1,70,000 was purchased on the same date. Show the van Account from 2015-16 to 2017-18 on the basis of straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year.
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 7 Chapter No 14: –

 Dr. Machine A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/15 To Cash A/c 65,000 31/03/16 By Deprecation A/c 6,500 31/03/16 By Balance C/d 58,500 65,000 65,000 01/04/16 To Balance b/d 58,500 31/03/17 By Deprecation A/c 10,000 01/10/16 To Cash A/c 70,000 31/03/17 By Balance C/d 1,18,500 1,28,500 1,28,500 01/04/17 To Balance b/d 1,18,500 01/04/17 By Cash A/c 45,000 01/04/17 To Cash A/c 1,70,000 01/04/17 By loss on the sale of van A/c 7,000 31/03/15 By Deprecation A/c 24,000 31/03/15 By Balance C/d 2,12,500 2,88,500 2,88,500

Working note:-

 Statement Showing profit or loss on the sale of Machinery Cr. Particulars Amount Book value of van as on 1st April 2015 when it was purchased 65,000 Less: – Amount of Depreciation charged on the year 2015-16 65,000*10%*12/12 6,500 Amount of Depreciation charged on the year 2016-17 6,500 Sale Price of Machinery 45,000 Loss on the sale of the asset 7,000

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

T.S. Grewal’s Double Entry Book Keeping