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Question No 9 Chapter No 14 – T.S. Grewal 11 Class

Question No 9 Chapter No 14
Question No.9 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

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Question No 9 Chapter No 14

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9. On 1st July 2015 A Co., Ltd. Purchases second-hand machinery for Rs 20,000 and spends Rs 30,000 on reconditioning and installing it. On 1st January 2016, the firm purchases new machinery worth Rs 12,000. on 30th June 2017, the machinery purchased on 1st January 2016 was sold for Rs 8,000 and on 1st July, a fresh Plant was installed payment for this plant was to be made as follows:
1st July 2017 Rs 5,000
30th Jun 2018 Rs 6,000
03rd June 2019 Rs 5,500
Payment in 2018 and 2019 include the interest of Rs 1,000 and RS 500 respectively.
The Company writes off 10 p.a. on the original cost. The account closed every year on 31st March. Show the Machinery account for the year ended 31st March 2018.

The solution of Question No 9 Chapter No 14: –

Dr.Machine A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/7/15To Cash A/c 23,00031/03/15By Deprecation A/c *1 2,075
01/1/16To Cash A/c 12,00031/03/15By Balance C/d 32,975
   35,000   35,000
01/04/16To Balance b/d 32,975
31/03/17By Deprecation A/c *2 3,500
    31/03/17By Balance C/d 29,475
   32,975
   32,975
01/04/17To Balance b/d  29,47530/6/17By Cash A/c 8,000
01/07/17To Cash A/c 15,00030/6/17By Deprecation A/c 300
    30/6/17By loss on the sale of van A/c 2,200
    30/3/18By Deprecation A/c*3 3,425
    30/3/18By Balance C/d 30,550
   51,750
   51,750


Working note:-

*1:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st July 2015

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 23,000
Rate of Depreciation = 10%
Period = from 01/07/15 to 31/03/16 i.e. 9 months
(from the date of purchase/Beginning balance to the end of the financial year)
=23,000 X 10/100 X 9/12
Depreciation =1,725

Purchased 1st January 2016

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 12,000
Rate of Depreciation = 10%
Period = from 01/1/15 to 31/03/16 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 12,000 X 10/100 X 3/12
Depreciation = 300
Total Depreciation for the finical year 2014-15 =2,025


*2:- Calculation of the amount of Depreciation on machinery for F/Y 2015-16
Purchased on 1st July 2014
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 23,000
Rate of Depreciation = 10%
Period = from 01/04/15 to 31/03/16 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
=23,000 X 10/100 X 12/12
Depreciation = 2,300

Purchased 1st January 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 15,000
Rate of Depreciation = 10%
Period = from 01/7/15 to 31/03/16 i.e. 3 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 15,000 X 10/100 X 9/12
Depreciation = 1,125
Total Depreciation for the finical year 2015-16=3,425

 

Statement Showing profit or loss on the sale of MachineryCr.
Particulars
Amount
Book value of machinery as on 1st June 2015 when it was purchased12,000
Less: – Amount of Depreciation charged on the year 2015-16 
12,000*10%*3/12300
 Amount of Depreciation charged on the year 2016-171,200
Amount of Depreciation charged on the year 2017-18 
12,000*10%*3/12300
Sale Price of Machinery 8,000
Loss on the sale of the asset2,200



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

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T.S. Grewal's Double Entry Book Keeping

T.S. Grewal’s Double Entry Book Keeping

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