Question 1

Question No 01 Chapter No 12 - D.K Goal 11 Class

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Question No 01 Chapter No 12
1. On 1st April, 2015, a limited company purchased a Machine for 1,90,000 and spent 10,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be 50,000 at the end of sixth year.Give Machine Account and Depreciation A/c in the books of the Company for 4 years after providing depreciation by Fixed Instalment Method. The books are closed on 31st March every year.
The solution of Question No 01 Chapter No 12: -

Dr

Question 2

Question No 02 Chapter No 12 - D.K Goal 11 Class

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Question No 02 Chapter No 12
02.On 1st April, 2015, a Company bought Plant and Machinery costing 68,000. It is estimated that its working life is 10 years, at the end of which it will fetch 8,000. Additions are made on 1st April, 2016 to the value of 40,000 (Residual value 4,000). More additions are made on Oct. 1, 2017 to the value of 9,800 (Break up value 800). The working life of both the additional Plant and machinery is 20 years.Show the Plant and Machinery account for the first four years

Question 3

Question No 03 Chapter No 12 - D.K Goal 11 Class

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Question No 03 Chapter No 12
03. Chandra Ltd. purchased a second-hand machine for 8,000 plus CGST and SGST @ 6% each on 1st July, 2015. They spent 3,500 on its overhaul and installation.Depreciation is written off 10% p.a. on the original cost. On 30th September, 2018, the machine was found to be unsuitable and sold for 6,500. Prepare the Machinery A/c for four years assuming that accounts are closed on 31st March
The solution of Question No 03 Chapter No 12: -

Dr.
Machinery A/c
Cr.

Date
P

Question 4

Question No 04 Chapter No 12 - D.K Goal 11 Class

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Question No 04 Chapter No 12
04. A company purchased a plant for 2,00,000 on 1st April 2016.it further spent 10,000 on its installation.it was brought in use from 1st August 2016 Depreciation is written off at 10% p.a. on straight line method. On 31st December 2018 the plant is sold for 1,20,000. prepare the plant A/c assuming that the books are closed on 31st March each year
The solution of Question No 04 Chapter No 12: -

Dr.
Machinery A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particulars

Question 5

Question No 05 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 05 Chapter No 12
05. On 1st January 2016, a company purchased a plant for 3,00,000 Depreciation is charged 20% p.a. on the original cost each year. On 30th November 2018, the plant is sold for 1,00,000. prepare the Plant A/c assuming that the books are closed on 31st March every year.
The solution to Question No 05 Chapter No 12: -

Dr.
Plant & Machinery A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particulars
J.F.
Amount

2016
 
 
 
2016

1 Jan
To Bank A/c
 
3,00,000
3

Question 6

Question No 06 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 06 Chapter No 12
06. A company purchased on 1st July 2015 machinery costing 30,000. it purchases further machinery on 1st January 2016 costing 20,000 and on 1st October 2016 costing 10,000. on 1st April 2017, the machinery installed on 1st July 2015 become absolute and was sold for 3,000Show the Machinery Account for 3 years charging depreciation by fixed installment Method at 10% per annum. Accounts are closed on 31st March every year.
The solution of Question No 06 Chapter No 12:

Question 7

Question No 07 Chapter No 12 - D.K Goal 11 Class

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Question No 07 Chapter No 12
07. On 1st January 2016 a Ltd. Purchased a machine for 2,40,000 and spent 10,000 on its erection. On 1st July 2016 an additional machinery costing 1,00,000 was purchased. On 1st July 2018 the machine purchased on 1st January 2016 was sold for 1,43,000 and on the same date, a new machine was purchased at a cost of 2,00,000Show the Machinery account for first three calendar years after charging depreciation at 5% by the straight line Method.
The solution of Question N

Question 8

Question No 08 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 08 Chapter No 12
08.Bhushan & Company purchased a Machinery on 1st April, 2015, for 54,000 and spent 6,000 on its installation. On 1st December, 2016, it purchased another machine for 30,000.On 30th June 2017, the first machine purchased on 1st April, 2015, is sold for 36,000 and on the same date it purchased a new machinery for 80,000.On December 1, 2018, the second machine (purchased on December 1, 2016) was also sold off for 26,000.Depreciation was provided on machinery @ 10%

Question 9

Question No 09 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 09 Chapter No 12
09. On 1st April 2010, Plant and Machinery was purchased for 1,20,000. New machinery was purchased on 1st Oct. 2010, for 50,000 and on 1st July 2011, for 25,000.On 1st January 2013, the machinery of the original value of 20,000 which was included in the machinery purchased on 1st April 2010,was sold for 6,000. Prepare Plant & Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method.Accounts are closed on 31st March every yea

Question 10

Question No 10 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 10 Chapter No 12
10. From the following transactions of concern, prepare Machinery Account for the year ending 31st March 2013:-

2019

Apr-01
:
Purchased second-hand machinery for 40,000.

Apr-01
:
Spent 10,000 on repairs for making it serviceable

Sept. 30 
:
Purchased additional new machinery for 20,000.

Dec. 31
:
Repairs and renewals of machinery 2,000.

2013

Mar-31
:
Depreciate the machinery at 10% p.a

The solution of Question No 10 Chapter No 12: -

Dr.

Question 11

Question No 11 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 11 Chapter No 12
11. A plant is purchased for 60,000 on 1st April 2009. It is estimated that the residual value of this plant at the end of its working life of 10 years will be 20,920. Depreciation is to be provided at 10% p.a. on the diminishing balance method.You are required to show the Plant Account for 4 years, assuming that the books are closed on 31st March every year.
The solution of Question No 11 Chapter No 12: -

Dr.
Plant & Machinery A/c
Cr.

Date
Particulars
J.F.

Question 12

Question No 12 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 12 Chapter No 12
12. A Company purchased a second-hand machine on 1st April, 2016, for 30,000 and immediately spent 4,000 on its repair and 1,000 on its installation. On Oct. 1, 2018, the machine was sold for 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @ 12% on purchase and sale of machine.
The solution of Question No 12 Chapter No 12: -

Dr.
Mach

Question 13

Question No 13 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 13 Chapter No 12
13. A firm purchased on 1st April, 2009, a second-hand Machinery for 36,000 and spent 4,000 on its installation. On 1st Oct. in the same year another Machinery costing 20,000 was purchased. On 1st Oct., 2011, the Machinery bought on 1st April, 2009 was sold off for 12,000 and on the same date a fresh Machine was purchased for 64,000. Depreciation is provided annually on 31st March, @ 10% p.a. on the Written Down Value Method. Show the Machine A/c from 1st April, 200

Question 14

Question No 14 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 14 Chapter No 12
14. A Company purchased a machinery for 50,000 on 1st Oct., 2016. Another machinery costing 10,000 was purchased on 1st Dec., 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of 5,000. The Company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare Machinery account for 3 years.
The solution of Question No 14 Chapter No 12: -

Dr.
Machinery A/c
Cr.

Date
Par

Question 15

Question No 15 Chapter No 12 - D.K Goal 11 Class

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Question No 15 Chapter No 12
15. The Sameer Transport Company purchased 10 Trucks at 90,000 each on 1st April 2011. on 1st October 2013 one of the Trucks was involved in accident and is completely destroyed 56,200 was received from the Insurance Company for the sum of 1,00,000. the company writes off 20% per annum on Diminishing Balance Method. The company Maintains the calendar year as its financial year. Show the Truck Account for four years 31st December 2014.
The solution of Question No 15

Question 16

Question No 16 Chapter No 12 - D.K Goal 11 Class

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Question No 16 Chapter No 12
16. A company whose accounting year is calendar year purchased machinery for 5,00,000on 1st January 2010. Additional machinery was acquired for 3,00,000 on 1st September 2011 and for 2,40,000 on 1st December 2014. Certain machinery purchased for 1,00,000 on 1st January 2010 was 2010 was sold for 48,200 on 30th June 2013.Prepare the machinery account upto the year 2014 after providing depreciation at 10% per annum on reducing instalment method.
The solution of Questi

Question 17

Question No 17 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 17 Chapter No 12
17. Raja Textiles Co. which closes its books on 31st March, purchased a machine on 1-4-2009 for 50,000. On 1-10-2010, it purchased an additional machine for 30,000. The part of the machine which was purchased on 1-4-2009 costing 10,000 was sold for 3,600 on 30th Sept., 2012. Prepare the Machine Account for four years, if the depreciation is provided at the rate of 10% p.a. on Diminishing Balance Method.
The solution of Question No 17 Chapter No 12: -

Dr.
Machiner

Question 18

Question No 18 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 18 Chapter No 12
18. A Company, which closes its books on 31st March every year, purchased on 1st July 2017, machinery costing 30,000. It purchased further machinery on 1st January 2018, costing 20,000, and on 1st October 2011, costing 10,000. On 1st April 2019, one-third of the machinery installed on 1st July 2019, became obsolete and was sold for 3,000.Show how the machinery account would appear in the books of the Company, it is given that machinery was depreciated by Diminishing

Question 19

Question No 19 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 19 Chapter No 12
19. On July 1, 2016 Pushpak Ltd. purchased a machinery for 5,70,000 and paid 30,000 for its overhauling and installation. Depreciation is provided @ 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2019 for a sum of 1,60,000. You are required to show the Machinery Account and Provision for Depreciation Account for three years.
The solution of Question No 19 Chapter No 12: -

Dr.
Machinery A/c

Question 20

Question No 20 Chapter No 12 - D.K Goal 11 Class

Sarbjit Singh · Accepted Answer

Question No 20 Chapter No 12
20.On 1st April 2008, a Company purchased 6 machines for 50,000 each. Depreciation at the rate of 10% p.a. is charged on the Straight Line Method. The accounting year of the Company ends on 31st March and the depreciation is credited to a separate 'Provision for Depreciation Account'.On 1st October 2010, one machine was sold for 30,000 and on 1st April 2011, a second machine was sold for 24,000. You are required to prepare Machinery Account and Provision for Depreci

Dat	Particulars	Amount	Date	Particulars	Amount
Dr.	Machinery A/c				Cr.
1st Apr.2015	To Balance b/f	2,00,000	31st Mar2016	By Deprecation A/c	25,000
			31st Mar2016	By Balance C/d	1,75,000
		2,00,000			2,00,000
1st Apr 2016	To Balance b/f	1,75,000	31st Mar2017	By Machinery Disposal A/c	25,000
			31st Mar2017	By Balance C/d	1,50,000
		2,00,000			2,00,000
1st Apr 2017	To Balance b/f	1,50,000	31st Mar2018	By Deprecation A/c	25,000
			31st Mar2018	By Balance C/d	1,25,000
		1,50,000			1,50,000
1st Apr.2018	To Balance b/f	1,25,000	31st Mar2019	By Deprecation A/c	25,000
			31st Mar2019	By Balance C/d	1,00,000
		1,25,000			1,25,000

Dat	Particulars	Amount	Date	Particulars	Amount
Dr.	Depreciation A/c				Cr.
31st Mar.2016	To Machinery A/c	25,000
			31stMar2016	By Balance C/d	25,000
		25,000			25,000
1st Apr 2016	To Machinery A/c	25,000
			31stMar2017	By Balance C/d	25,000
		25,000			25,000
1st Apr 2017	To Machinery A/c	25,000
			31st Mar2018	By Balance C/d	25,000
		25,000			25,000
1st Apr.2018	To Machinery A/c	25,000
			31stMar2019	By Balance C/d	25,000
		25,000			25,000

Amount of Depreciation	=	2,00,000 -50,000
Amount of Depreciation	=	6

	=	25,000

D.K Goal +1 New ISC Accountancy Solutions Chapter No. 12. Depreciation

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Table of Contents

Question No 01 Chapter No 12 - D.K Goal 11 Class

The solution of Question No 01 Chapter No 12: -

D K Goel – New ISC Accountancy -(Class 11 - ICSE)- Solution

Question No 02 Chapter No 12 - D.K Goal 11 Class

Question No 03 Chapter No 12 - D.K Goal 11 Class

Question No 04 Chapter No 12 - D.K Goal 11 Class

Question No 05 Chapter No 12 - D.K Goal 11 Class

Question No 06 Chapter No 12 - D.K Goal 11 Class

Question No 07 Chapter No 12 - D.K Goal 11 Class

Question No 08 Chapter No 12 - D.K Goal 11 Class

Question No 09 Chapter No 12 - D.K Goal 11 Class

Question No 10 Chapter No 12 - D.K Goal 11 Class

Question No 11 Chapter No 12 - D.K Goal 11 Class

Question No 12 Chapter No 12 - D.K Goal 11 Class

Question No 13 Chapter No 12 - D.K Goal 11 Class

Question No 14 Chapter No 12 - D.K Goal 11 Class

Question No 15 Chapter No 12 - D.K Goal 11 Class

Question No 16 Chapter No 12 - D.K Goal 11 Class

Question No 17 Chapter No 12 - D.K Goal 11 Class

Question No 18 Chapter No 12 - D.K Goal 11 Class

Question No 19 Chapter No 12 - D.K Goal 11 Class

Question No 20 Chapter No 12 - D.K Goal 11 Class

Question No 21 Chapter No 12 - D.K Goal 11 Class

Question No 22 Chapter No 12 - D.K Goal 11 Class

Question No 23 Chapter No 12 - D.K Goal 11 Class

Question No 24 Chapter No 12 - D.K Goal 11 Class

Question No 25 Chapter No 12 - D.K Goal 11 Class

Question No 26 Chapter No 12 - D.K Goal 11 Class

Question No 27 Chapter No 12 - D.K Goal 11 Class

Question No 28 Chapter No 12 - D.K Goal 11 Class

Question No 29 Chapter No 12 - D.K Goal 11 Class

Question No 30 Chapter No 12 - D.K Goal 11 Class

Question No 31 Chapter No 12 - D.K Goal 11 Class

Question No 32 Chapter No 12 - D.K Goal 11 Class

Question No 33 Chapter No 12 - D.K Goal 11 Class

Question No 34 Chapter No 12 - D.K Goal 11 Class

Question No 35 Chapter No 12 - D.K Goal 11 Class

Question No 36 Chapter No 12 - D.K Goal 11 Class

Question No 37 Chapter No 12 - D.K Goal 11 Class

Question No 38 Chapter No 12 - D.K Goal 11 Class

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