Question 1

Question No 1 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 1 Chapter No 14
Straight Line Method Without Goods and Series Tax(GST) 
1. Calculate the rate of Deprecation under straight-line Method (SLM) from the following Purchased a second-hand machine for Rs 96,000, spent Rs 24,000 on its cartage, repairs and installation, estimated useful life of Rs 4 years. Estimated residual value Rs 72,000
The solution of Question No 1 Chapter No 14: -  
The method of calculating the Deprecation rate:

Amount of Depreciation =
Cost of assets- Estimate

Question 2

Question No 2 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 2 Chapter No 14
2. On 1st April 2015, X Ltd. Purchased me chine costing Rs 4,00,000 and spent Rs 50,000 on its installation. The estimated life of machinery is 10 years, after which its residual instalment Method and prepare Machinery Account for the three years. The books are closed on 31st March every year.
The solution of Question No 2 Chapter No 14: -  
The method of calculating the Deprecation rate:

Amount of Depreciation =
Cost of assets- Estimated Realizable or Scrap value

Question 3

Question No 3 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 3 Chapter No 14
3. On 1st April 2014, furniture costing Rs 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for Rs 5,000. The addition is made on 1st April 2015 and 1st October 2017 to the value of Rs 9,500 and Rs 8,400( Residual values Rs 500 and RS 400 respectively). Show the furniture Account for the first four years, if Depreciation is written off according to the Straight line Method.
The solution of Question No 3 Chapter No 14

Question 4

Question No 4 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 4 Chapter No 14
4. On 1st April 2014 A Ltd, purchased a machine for the Rs 2,40,000 and spent Rs 10,000 on its erection. On 1st October 2014, a piece of addition machinery costing Rs 1,00,000 was purchased, On October 2016 the machinery purchased on 1st April, 0214 was sold for Rs 1,43,000 and on the same date, a new machine was purchased at a cost of Rs 2,00,000.Show the Machinery Account for the first four financial years after charging Depreciation at 5% p.a. by the Straight Line

Question 5

Question No 5 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 5 Chapter No 14
5. From the following transaction of concern, prepare the Machinery account for the year ended 31st March 20181st April 2017: purchased a second – hand machinery for Rs 40,000.1st April 2017: Spent Rs 10,000 on repair for the making it serviceable.30th September 2017: purchased additional new machinery for Rs 20,00031st December 2017: Repair and renewals of machinery Rs 3,000*31st March 2018: Deprecate the machinery at 10% p.a.
The solution of Question No 5 Chapter N

Question 6

Question No 6 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 6 Chapter No 14
6. An asset was purchased for Rs 10,500 on 1st April 2011. The scrap value was estimated to be Rs 500 at the end of the asset’s 10 years ‘life. Straight Line method of the Depreciation was used. The accounting year ends on 31st March every year. The asset was sold for Rs 600 on 31st March 2018. calculation the following:The Depreciation expense for the year ended 31st March 2012The netbook value of the asset on 31st March 2016.The gain or loss on the sale of the asse

Question 7

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

Sarbjit Singh · Accepted Answer

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 ar

Question 8

Question No 8 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 8 Chapter No 14
8. A company whose accounting year is the financial year purchased on 1st July 2014 machinery costing Rs 30,000It purchased further machinery on 1st January 2015 costing Rs 20,000 and on 1st October 2015 costing Rs 10,000On 1st April 2016 one-third of the machinery installed on 1st July 2014 became obsolete and was sold for Rs 3,000Show how Machinery Account would appear in the books of the company. It is given that machinery was depreciated by Fixed Instalment Metho

Question 9

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

Sarbjit Singh · Accepted Answer

Question No 9 Chapter No 14
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 5,00030th Jun 2018 Rs 6,00003rd June 2019 Rs 5,500Payment in 2018 an

Question 10

Question No 10 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 10 Chapter No 14
10. On 1st April 2015, Shivam Enterprise purchased a second- hand machinery for Rs 52,000and spent Rs 2,000 on cartage, Rs 3,000 on unloading, Rs 2,000 on installation and Rs 1,000 as the brokerage of the middle man. It was estimated that the machinery will have a scrap value of Rs 6,000 at the end of its useful life, which is 10 year. On 31st December 2015, repairs and renewals amounted to Rs 2,500 were paid. On 1st October 2017, this machine was sold for Rs 30,600

Question 11

Question No 11 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 11 Chapter No 14With Goods and Services Tax (GST)
11. Modern Ltd. Purchased machinery on 1st August 2015 for Rs 60,000. on 1st October 2016, it purchased another machinery for Rs 20,000 plus CGST and SGST @6% each. On 30th June 2017, it sold the first machine purchased in 2015 for Rs 30,500 charging IGST @12%. Depreciation is provided @20% p.a. on the original cost each year. Accounts are closed on 31st March every year. Prepare the Machinery A/c for three years.The solution of Ques

Question 12

Question No 12 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 12 Chapter No 14
12. On 1st July 2015, Sohan Lal & Sons purchased a plant costing Rs 60,000. The additional plant was purchased on 1st January 2016 for Rs 40,000 and on 1st October 2016 for Rs 20,000, 1st July 2015 was found to have become obsolete and was sold for Rs 6,000, charging CGST and SGST @6% each. Prepare the plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged @ 10% p.a. on straight line Method . The account is closed o

Question 13

Question No 13 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 13 Chapter No 14
13. A firm purchased a second- hand machine on 1st April 2015 and paid 1,40,000 for it. It spent on its overhauling and installation Rs 20,000. on 1st October 2015, another machine costing Rs 80,000 was purchased. On 1st October 2017, the machine purchased on 1st April 2015 was disposed of for Rs 1,04,000, charging CGST and SGST @6% each and new machine costing Rs 2,00,000 was installed, paying CGST and SGST @6% each. Deprecation as provided @10%p.a. by the Straight

Question 14

Question No 14 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 14 Chapter No 14Recording of Depreciation by Creating Provision for Depreciation Account Without Good and Services Tax (GST)14. Following Goods and Services Tax (GST)

Rs

1st April 2015
Machinery A/c
80,000

Provision for Depreciation A/c
36,000

On 1st April 2015, they decided to sell a machine for Rs 8,700. this machine was purchased for Rs 16,000 in April 2011. prepare the Provision for the depreciation Account and Machinery Account on 31st March 2016, assuming the f

Question 15

Question No 15 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 15 Chapter No 14
15. Following balances appear in the books of Priyank Brothers:

Rs

1st April 2015
Machinery A/c
20,00,000

Provision for Depreciation A/c
8,00,000

On 1st April, 2016, they decide to sell a machine for ₹ 5,00,000. This machine was purchased for ₹ 7,50,000 on 1st April, 2013. Prepare the Machinery Account and Provision for Depreciation Account for the year ended 31st March, 2017 assuming that the firm has been charging Depreciation @ 10% p.a. on the Str

Question 16

Question No 16 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 16 Chapter No 14With Goods and Services Tax (GST)
16. Following balances appear in the books of X Ltd. as on 1st April 2017:

Rs

Machinery A/c
5,00,000

Provision for Depreciation A/c
2,25,000

The machinery is depreciated @ 10% p.a. on the Fixed Instalment Method. The accounting year being April-March. On 1st October 2017, machinery which was purchased on 1st July 2014 for ₹ 1,00,000 was sold for ₹ 42,000 plus CGST and SGST @ 6% each and on the same date, a new machine was

Question 17

Question No 17 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 17 Chapter No 14
17. A Limited has the following balances on 1st April, 2017:

Rs

Machinery A/c
2,00,000

Provision for Depreciation A/c
90,000

The company charged depreciation @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year. On 1st October 2017, a part of machinery purchased on 1st July 2014 for ₹ 40,000 was sold for ₹ 18,400, charging CGST and SGST @ 6% each and on the same date, a new plant was purchased for ₹ 1,00,000 plus IGST @ 12%.Pr

Question 18

Question No 18 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 18 Chapter No 14
Written Down value Method Without Goods and Services Tax (GST)18. The original cost of furniture amounted to ₹ 4,000 and it is decided to write off 5% on the original cost as depreciation at the end of each year. Show the Ledger Account as it will appear during the first four years. Show also how the same account will appear if it was decided to write off 5% on the diminishing balance of the asset each year.The solution of Question No 18  Chapter No 14: - 
(Original

Question 19

Question No 19 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 19 Chapter No 14
19. A boiler was purchased from abroad for ₹ 10,000; shipping and forwarding charges ₹ 2,000, Import duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000.Calculate the depreciation for the first three years (separately for each year) @ 10% on Diminishing Balance Method.The solution of Question No 19 Chapter No 14: -

Dr.
Furniture A/c
Cr.

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

I year
 
 
 
31/12/
By Deprecation A/c*1
 
2,000

01/

Question 20

Question No 20 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit Singh · Accepted Answer

Question No 20 Chapter No 14
20. Babu purchased on 1st April 2016, a machine for ₹ 6,000. On 1st October 2016, he also purchased another machine for ₹ 5,000. On 1st October 2017, he sold the machine purchased on 1st April 2016 for ₹ 4,000.It was decided that Depreciation @ 10% p.a. was to be written off every year under Diminishing Balance Method.Assuming the accounts were closed on 31st March every year, show the Machinery Account for the years ended 31st March 2017 and 2018The solution of Que

Rate of Depreciation =	Amount of Depreciation	X100
	Total Cost of Assets

Rate of Depreciation =	12,000	X100
	1,20,000

T.S. Grewal 11 Class Financial Accounting Solutions Chapter No 14- Depreciation

Quick Chapter Summary & Cheat Sheet

💡 Depreciation Rules & Formulas

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Question No 1 Chapter No 14 - T.S. Grewal 11 Class

Question No 2 Chapter No 14 - T.S. Grewal 11 Class

Question No 3 Chapter No 14 - T.S. Grewal 11 Class

Question No 4 Chapter No 14 - T.S. Grewal 11 Class

Question No 5 Chapter No 14 - T.S. Grewal 11 Class

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Question No 18 Chapter No 14 - T.S. Grewal 11 Class

Question No 19 Chapter No 14 - T.S. Grewal 11 Class

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Question No 31 Chapter No 14 - T.S. Grewal 11 Class

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Question No 34 Chapter No 14 - T.S. Grewal 11 Class

Question No 35 Chapter No 14 - T.S. Grewal 11 Class

Sarbjit SinghB.Com and M.Com

Amount of Depreciation =	Cost of assets- Estimated Realizable or Scrap value
	Number of years of expected useful life