Question 1

Q.No.1 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA machine is purchased for ₹ 90,000. Expenses incurred on its cartage and installation are ₹ 10,000. The residual value at the end of its expected useful life of 10 years is estimated at ₹ 20,000. Calculate the amount of depreciation by Straight Line Method for the first year ending 31st March, 2023, if the machine is purchased on: (a) 1st April, 2022. (b) 1st July, 2022. (c) 1st October, 2022 (d) 1st January, 2023SolutionNote: Straight Line Method: annual depreciation = (cost + expenses

Question 2

Q.No.2 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionCalculate the amount of annual depreciation and rate of depreciation under Straight Line Method in each of the alternative cases:CasePurchase Price of Machinery (₹)Installation Charges (₹)Estimated Scrap Value (₹)Estimated useful Life (in years)(a)1,80,00020,00010,0005(b)4,75,00025,00050,0005(c)90,00010,00020,00010(d)3,40,00060,00040,00010(e)90,00010,00020,0004SolutionNote: Straight Line Method: annual depreciation = (cost + expenses on purchase and installation − scrap value) ÷ useful l

Question 3

Q.No.3 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionShiv & Co. purchased machinery for ₹ 21,000 on 1st April, 2020. The estimated useful life of the machinery is 10 years, after which its realisable value will be ₹ 1,000. Determine the amount of annual depreciation according to the Straight Line Method and prepare Machinery Account for the first three years. The books of account are closed on 31st March every year.SolutionNote: Straight Line Method: annual depreciation = (cost + expenses on purchase and installation − scrap value) ÷ usefu

Question 4

Q.No.4 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st April, 2020, Sanjay purchased machinery for ₹ 40,000 and spent ₹ 5,000 on its installation. Estimated useful Life of the Machinery is 10 years with a scrap value of ₹ 5,000. Calculate depreciation as per Straight Line method and show Machinery Account of first three years. The books are closed on 31st March every year.SolutionNote: Straight Line Method: annual depreciation = (cost + expenses on purchase and installation − scrap value) ÷ useful life. Depreciation for a part-year is

Question 5

Q.No.5 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st April, 2019, Rupa & Co. Purchased a machinery for ₹ 3,00,000 and incurred ₹ 21,000 as freight and insurance, ₹ 3,000 as carriage inwards and ₹ 6,000 as installation charges. It has estimated that the machinery will have a scrap value of ₹ 30,000 at the end of the estimated useful life of four years.Prepare Machinery Account for the first four financial years ended 31st March according to the Straight Line Method.SolutionNote: Straight Line Method: annual depreciation = (cost + exp

Question 6

Q.No.6 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st April, 2019, Ajay Bros. purchased office furniture for ₹ 55,000. It is estimated to have useful life of 10 years at the end of which it can be sold for ₹ 5,000. Additions were made on 1st April, 2020 and 1st October, 2022 costing ₹ 9,500 and ₹ 8,400 (Residual values ₹ 500 and ₹ 400 respectively).Prepare Furniture Account for the first four years ended 31st March, if depreciation is written off according to the Straight Line Method.SolutionNote: Straight Line Method: annual depreci

Question 7

Q.No.7 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionFrom the following transactions of a firm, prepare Machinery Account for the year ended 31st March, 2023:DateTransaction1st April, 2022Purchased second-hand machinery for ₹ 40,000.1st April, 2022Spent ₹ 10,000 on repairs for making it serviceable.30th September, 2022Purchased additional new machinery for ₹ 20,000.31st December, 2022Repairs and renewals of machinery ₹ 3,000.31st March, 2023Depreciate the machinery at 10% p.a.SolutionNote: Repairs needed to make second-hand machinery servi

Question 8

Q.No.8 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st April, 2019, Bhushan purchased a machine for ₹ 2,40,000 and spent ₹ 10,000 on its installation. On 1st October, 2019, another machinery costing ₹ 1,00,000 was purchased. On 1st October, 2021 the machine purchased on 1st April, 2019 was sold for ₹ 1,43,000 and on the same date, a new machine was purchased at a cost of ₹ 2,00,000.Show Machinery Account for the first four financial years after charging depreciation @ 5% p.a. by the Straight Line Method.SolutionNote: Straight Line Met

Question 9

Q.No.9 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA Van was purchased on 1st April, 2019 for ₹ 60,000 and ₹ 5,000 were spent on its repair and registration. On 1st October, 2020, another van was purchased for ₹ 70,000. On 1st April, 2021, the first van purchased on 1st April, 2019 was sold for ₹ 45,000 and a new van costing ₹ 1,70,000 was purchased on the same date.Prepare Van Account from 1st April, 2019 to 31st March, 2022 charging depreciation by Straight Line Method, the rate of depreciation charged being 10% p.a. and the books are

Question 10

Q.No.10 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionMuskan Traders purchased four machines of ₹ 25,000 each on 1st July, 2019. On 30th September, 2020, the firm sold one of the machine purchased on 1st July, 2019 at a loss of ₹ 2,500. The firm sold another machine on 31st December, 2021 and a profit of ₹ 3,750. A new machine was purchased on 30th September, 2022 for ₹ 31,250. Prepare Machinery Account for 4 years, if books of account are closed on 31st March each year and depreciation is charged @ 10% p.a. as per Straight Line Method.Solu

Question 11

Q.No.11 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionM/s Sharad Bros. purchased machinery on 1st April, 2019 for ₹ 50,000. On 1st October, 2020, additions were made of ₹ 10,000. On 1st July, 2021, further addition was made of ₹ 6,400. On 30th September, 2022, machinery the original value of which was ₹ 8,000 on 1st April, 2019, was sold for ₹ 6,000. Depreciation is charged @ 10% p.a. on the original cost.Prepare the Machinery Account for four years ending 31st March, 2023.SolutionNote: Straight Line Method: annual depreciation = (cost + ex

Question 12

Q.No.12 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA firm whose accounting year is a financial year, purchased on 1st July, 2019 machinery for ₹ 30,000. It further purchased machinery on 1st January, 2020 for ₹ 20,000 and on 1st October, 2020 for ₹ 10,000. On 1st April, 2021 one-third of the machinery installed on 1st July, 2019 became obsolete and was sold for ₹ 3,000.Show Machinery Account in the books of the company. Machinery was depreciated by Fixed Instalment Method @ 10% p.a. What will be the value of Machinery Account on 1st Apri

Question 13

Q.No.13 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA firm purchased a second-hand machine on 1st April, 2019 and paid ₹ 1,40,000 for it. It spent on its overhauling and installation ₹ 20,000. On 1st October, 2019, another machine costing ₹ 80,000 was purchased. On 1st October, 2021, the machine purchased on 1st April, 2019 was sold for ₹ 1,04,000 and a new machine costing ₹ 2,00,000 was installed. Depreciation was provided @ 10% p.a. by the Straight Line Method. Give the Machinery Account and Depreciation Account for 3 years. Firm's book

Question 14

Q.No.14 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st April, 2021, Machinery Account of Karan shows a balance of ₹ 96,000 (original cost ₹ 1,20,000). On 1st August, 2021, a machine for ₹ 60,000 was purchased and ₹ 9,000 were incurred for its freight and installation. On 1st September, 2022, another new machine was purchased for ₹ 50,000 by cheque, but the machine started functioning on 1st November, 2022.Depreciation was charged @ 10% by the Straight Line Method. Give the necessary entries in the books of Karan and show Machinery Acc

Question 15

Q.No.15 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionOn 1st July, 2019, A Co. Ltd. purchased second-hand machinery for ₹ 20,000 and spent ₹ 3,000 on reconditioning and installing it. On 1st January, 2020, the firm purchased new machinery of ₹ 12,000. On 30th June, 2021, the machinery purchased on 1st January, 2020 was sold for ₹ 8,000 and on 1st July, 2021, a fresh plant was installed. Payment for this plant was to be made as follows: 1st July, 2021 ₹ 5,000; 30th June, 2022 ₹ 6,000; 30th June, 2023 ₹ 5,500. Payments in 2022 and 2023 includ

Question 16

Q.No.16 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA firm purchased on 1st April, 2021, a plant for ₹ 1,00,000. On 1st October, in the same year an additional plant was purchased costing ₹ 50,000. On 1st October, 2022, the plant purchased on 1st April, 2021 having become obsolete, is sold for ₹ 40,000.Depreciation is provided at 10% per annum on original cost on 31st March, every year.Show Plant Account and Provision for Depreciation Account for the relevant years.SolutionNote: Provision for Depreciation method: the asset stays at cost i

Question 17

Q.No.17 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionFollowing balances exist in the books of Rama Bros.: On 1st April, 2022: Machinery Account ₹ 80,000; Provision for Depreciation Account ₹ 36,000.On 1st April, 2022, they sold a machine for ₹ 8,700. This machine was purchased for ₹ 16,000 in April, 2018. You are required to prepare Provision for Depreciation Account and Machinery Account on 31st March, 2023, the depreciation being charged @ 10% p.a. by Straight Line Method.SolutionNote: Provision for Depreciation method: the asset stays a

Question 18

Q.No.18 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionThe following balances exist in the books of X Ltd.: On 1st April, 2022: Machinery Account ₹ 5,00,000; Provision for Depreciation Account ₹ 2,25,000.The machinery is depreciated @ 10% p.a. by the Fixed Instalment Method, the accounting year being April – March. On 1st October, 2022, a machinery which was purchased on 1st July, 2019 for ₹ 1,00,000 was sold for ₹ 42,000 and on the same date a fresh machine was purchased for ₹ 2,00,000.Prepare Machinery Account and Provision for Depreciatio

Question 19

Q.No.19 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA Ltd. has the following balances on 1st April, 2022: Machinery Account ₹ 2,00,000; Provision for Depreciation Account ₹ 90,000.The company charged depreciation @ 10% p.a. as per Straight Line Method. Accounts are closed on 31st March every year. On 1st October, 2022 a part of machinery purchased on 1st July, 2019 for ₹ 40,000 was sold for ₹ 18,400 and on the same date a new plant was purchased for ₹ 1,00,000.Prepare 'Machinery Account' and 'Provision for Depreciation Account' for the ye

Question 20

Q.No.20 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

Sarbjit Singh · Accepted Answer

QuestionA boiler was purchased from abroad for ₹ 10,000. Shipping and forwarding charges ₹ 2,000, Customs Duty ₹ 7,000 and expenses of installation amounted to ₹ 1,000.Calculate depreciation for each of the first three years @ 10% p.a. as per Diminishing Balance Method.SolutionNote: Written Down (Diminishing Balance) Method: depreciation is charged every year at the same % on the balance (book value) at the start of the year; for a part-year it is charged for the months held. Amounts are rounded

Item	Working	₹
Cost of machine	90,000 + 10,000	1,00,000
Less: residual value		20,000
Depreciable amount		80,000
Annual depreciation	80,000 ÷ 10 years	8,000

Date of purchase	Months held to 31st March, 2023	Working	Depreciation (₹)
(a) 1st April, 2022	12 months	8,000 × 12/12	8,000
(b) 1st July, 2022	9 months	8,000 × 9/12	6,000
(c) 1st October, 2022	6 months	8,000 × 6/12	4,000
(d) 1st January, 2023	3 months	8,000 × 3/12	2,000

T.S. Grewal ISC Class 11 Accountancy Solutions Chapter 15 - Depreciation

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Q.No.1 | Chapter 15 – Depreciation | T.S. Grewal ISC Class 11 Solution

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