Question 1

Question 1 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 1 Chapter 11 – Unimax Publications of Class 11
Straight Line Method
A company purchases a plant for ₹ 20,000. The useful life of the plant of the plant is 8 years and the estimated residual value after 8 years id ₹ 4,000. Determine the rate of depreciation if management wants to depreciate it by straight line method.
The solution of Question 1 Chapter 11 – Unimax Publications of Class 11
Amount of Depreciation = (Total Value − Residual Value) ÷ Useful Life= (₹ 20,000 − ₹ 4,000) ÷ 8= ₹

Question 2

Question 2 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 2 Chapter 11 – Unimax Publications of Class 11
On 1st January 2016, a limited company purchases a machine for ₹ 72,000 and spent ₹ 4,000 on its installation. At the date of purchase, it was estimated that the scrap value of the machine would be 4 6,000 at the end of ten year.Prepare machinery account by and Depreciation A/c in the books of company for 4 years it deprecation is provided by Fixed Instalment method. The books are closed on 31st December each year.
The solution of Question

Question 3

Question 3 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 3 Chapter 11 – Unimax Publications of Class 11
Vasu & Co. acquired a machine on 1st July,2016 at a cost of ₹ 70,000 and spent ₹ 5,000 on its installation and carriage. The firm writes off depreciation at 10% of the original cost every year. Prepare Machinery A/c and Deprecation A/c for Four years. The books are closed on 31st December each year.
The solution of Question 3 Chapter 11 – Unimax Publications of Class 11

Dr.
Machine A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particu

Question 4

Question 4 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 4 Chapter 11 – Unimax Publications of Class 11
A company purchases a plant for ₹ 31,000 on January 1,2019. If further spent ₹ 1400 on its installation. It was brought into use from 1st May,2019. You are required to prepare plant account and depreciation account for the first four years when rate of depreciation is 10% p.a. on straight line method.
The solution of Question 4 Chapter 11 – Unimax Publications of Class 11

Dr.
Machine A/c
Cr.

Date
Particulars
J.F.
Amount
Date
Particula

Question 5

Question 5 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 5 Chapter 11 – Unimax Publications of Class 11
A Maruti van was purchased on 1.1.2021 for ₹ 60,000 and ₹ 5,000 was spent on its repairs and registration. On 1.7.2022 another van was purchases for ₹ 70,000. On 1.1.2023 first van purchased on 1.1.2021 was sold for ₹ 45,000 and a new van costing ₹ 1,70,000 was purchased on the same date. Show Maruti van account from 2021-2023 on the basis of straight line method, if the rate of depreciation charged is 10% p.a. assume that books are closed

Question 6

Question 6 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 6 Chapter 11 – Unimax Publications of Class 11
A company purchased machinery on 1st April,2018 costing ₹ 29,500, it spent ₹ 500 on its carriage. It further purchased machinery on 1st October,2018 costing ₹ 20,000 and on 1st July,2019 costing ₹ 10,000. On 1st January 2020. The machinery installed on 1st April 2018 was sold for ₹ 3,000.Prepare machinery account for 3 years if depreciation is to be charged @ 10% p.a. by Fixed installment method. The books are closed on 31st December each

Question 7

Question 8 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 8 Chapter 11 – Unimax Publications of Class 11
From the following transactions of a concern, prepare machinery account for the year ending 31st Dec.2019:Jan.1: Purchased a second-hand machinery for ₹ 40,000.Jan.1: Spent ₹ 10,000 on repair for making it serviceable.Jun.30: Purchased additional new machinery for ₹ 20,000.Set.10: Repair and renewals of machinery for ₹ 2,000.Dec.31: Depreciate the machinery at 10% p.a.
The solution of Question 8 Chapter 11 – Unimax Publications of Class 11

Question 8

Question 9 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 9 Chapter 11 – Unimax Publications of Class 11
K. Ltd. Purchased a machinery worth ₹ 8,00,000 as 1st January,2016. On 1st July,2017 it purchased a new machinery for ₹ 2,60,000 and spent ₹ 40,000 on its cartage and installation. On 1st October,2018 it purchased another machinery for ₹ 1,80,000and spent ₹ 20,000 for its installation. The machine purchased on 1st July,2017 was sold off on 31st march 2020 for ₹ 1,55,000. Depreciation is charges @ 15% p.a. on straight line method. Prepare p

Question 9

Question 10 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 10 Chapter 11 – Unimax Publications of Class 11
X Ltd. has imported a machinery on 1st July, 2021 for ₹ 1,28,000, paid customs duty and freight ₹ 65,000 and incurred erection charges ₹ 48,000. Another local machinery costing ₹ 80,000 was purchased on January 1, 2022. On 1st July 2022, a portion of the imported machinery (value one-third) got out of order and was sold for ₹ 27,840. Another machinery was purchased to replace the same for ₹ 40,000 on 1.7.19. depreciation is being provided

Question 10

Question 11 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 11 Chapter 11 – Unimax Publications of Class 11
Diminishing Balance Method Question.11 A company purchased a plant for ₹ 60,000 on 1st Jan.,2016. It is estimated that scrap value of this plant at the end of its working life of 12 years will be ₹ 12,420. Depreciation is to be provided @ 10% p.a. by ‘Diminishing balance method’.Prepare plant account for 4 years assuming that books are closed on 31st Dec., each year.
The solution of Question 11 Chapter 11 – Unimax Publications of Class 11

Question 11

Question 12 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 12 Chapter 11 – Unimax Publications of Class 11
The original cost of machinery amount to ₹ 4,000 and it is decided to write off 5% on the Diminishing value of asset as depreciation at the end of each year.Prepare the ledger account as it will appear during first four years.
The solution of Question 12 Chapter 11 – Unimax Publications of Class 11

Dr.
Machine A/c
Cr.

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

1st year
To Bank A/c
 
4,000
 
By Deprecation A/c
 
200

Question 12

Question 13 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 13 Chapter 11 – Unimax Publications of Class 11
The original cost of machinery amount to ₹ 4,000 and it is decided to write off 5% on the Diminishing value of asset as depreciation at the end of each year.Prepare the ledger account as it will appear during first four years.
The solution of Question 13 Chapter 11 – Unimax Publications of Class 11

Dr.
Machine A/c
Cr.

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

01/01/20
To Balance b/d
 
20,000
31/12/20
By Deprecation

Question 13

Question 14 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 14 Chapter 11 – Unimax Publications of Class 11
M/s Krishana publication purchased machinery for ₹ 40,000 on 1.7.2021. Depreciation is provided @ 10% p.a. on Diminishing balance. On 31.10.2023 one -fourth of the machinery was found unsuitable and disposed off at ₹ 5,600. On the same date new machinery at a cost of ₹ 15,000 was purchased. Write up the machinery account from 2021 to 2023. The account are closed on 31 December every year
The solution of Question 14 Chapter 11 – Unimax Pub

Question 14

Question 15 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 15 Chapter 11 – Unimax Publications of Class 11
15. A company purchased a machinery for ₹ 50,000 on 1st July,2021. Another machinery costing ₹ 10,000 was purchased on 1st sept. 2022. On 31st dec.,2023, the machinery purchased in 2021 was sold at a loss of ₹ 5,000. The company charges depreciation at the rate of 15% on diminishing balance method. Accounts are closed on 31st dec. every year. Prepare machinery account for 3 years.
The solution of Question 15 Chapter 11 – Unimax Publicatio

Question 15

Question 16 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 16 Chapter 11 – Unimax Publications of Class 11
“Astha” Engineering works purchased a machine on 1st April, 2021 for ₹ 1,80,000 and spent ₹ 20,000 on its installation.On the 1st January 2022 it purchased another machine for ₹ 2,40,000. On 1st July 2023, the machine purchased on 1st April, 2021 was sold for ₹ 1,45,000. On 1st October,2023 another machine was purchased for ₹ 4,00,000.Prepare machinery account from 2021 to 2023 after charging depreciation @ 10% p.a. diminishing balance me

Question 16

Question 17 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 17 Chapter 11 – Unimax Publications of Class 11
On 1.1.2019, Mrs. Neelam Sharma bought a machinery for ₹ 25,000 on which she spent ₹ 5,000 for carriage and freight, ₹ 1,000 for brokerage of the middle-man, ₹ 3,500 for installation and ₹ 500 for an iron pad. The machinery is depreciated @ 10% per annum on written down value basis. After four years the machine was sold to Deep for ₹ 30,500 and ₹ 500 were paid or loss on sale of machine if the accounts are closed on 31st December every ye

Question 17

Question 18 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 18 Chapter 11 – Unimax Publications of Class 11
A company whose accounting year is the calendar year purchased on 1st April, 2017 machinery costing ₹ 30,000. It further purchased machinery on 1st Oct.2017 costing ₹ 20,000 and on 1st July, 2018 costing ₹ 10,000.On 1st Jan., 2019 one third of the machinery installed on 1st April, 2017 become obsolete and was sold for ₹ 3,000.Show how the machinery account would appear in the books of company if depreciation is charges at 10% p.a. on writ

Question 18

Question 19 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 19 Chapter 11 – Unimax Publications of Class 11
A firm purchased on 1st January, 2017 certain machinery for ₹ 5,82,000 and spent ₹ 10,8000 on its erection. On 1st July, 2017, additional machinery costing ₹ 2,00,000 was purchased. On 1st July,2019, the machinery purchased on 1st January, 2017 was auctioned for ₹ 2,86,000 and a fresh machinery for ₹ 4,00,000 was purchased on same date. Depreciation was provided annually on 31st December at the rate of 10% on written down value method. Pr

Question 19

Question 20 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 20 Chapter 11 – Unimax Publications of Class 11
On 1st Jan., 2017 a company purchased a machinery for ₹ 10,000. It spent ₹ 2,000 on its erection. On 1st July,2017 it purchased another machinery for ₹ 4,000. On 1st Jan., 2019 the machinery purchased on 1st Jan. 2017 ₹ was sold for ₹ 4,600. The company writes on depreciation a 10% p.a. on the diminishing balance method. Prepare machinery account for three years ending 31st Dec., 2019.
The solution of Question 20 Chapter 11 – Unimax Publi

Question 20

Question 21 Chapter 11 – Unimax Publications of Class 11

Sarbjit Singh · Accepted Answer

Question 21 Chapter 11 – Unimax Publications of Class 11
The following balance appear in the books of Gupta Ltd.Machinery A/c as on 1.4.2019 = ₹ 8,00,000povision for depreciation as on 1.4.2019 = ₹ 3,10,000On 1.7.2019 a machinery which was purchased on 1.4.2017 for ₹ 1,20,000 was sold for ₹ 50,000 and on the same date anther machinery was purchased was purchased for ₹ 32,000. The firms charges depreciation @ 15% p.a. on original method and closed its books on 31st March every year. Prepare the

Unimax Accountancy Class 11 - 2023 Solutions Chapter 11 - Depreciation - Unimax

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Question 1 Chapter 11 – Unimax Publications of Class 11

The solution of Question 1 Chapter 11 – Unimax Publications of Class 11

Question 2 Chapter 11 – Unimax Publications of Class 11

Question 3 Chapter 11 – Unimax Publications of Class 11

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