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. | Machinery A/c | Cr. | |||||
| Dat | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 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 |
||||||
| Dr. | Depreciation A/c |
Cr. | |||||
| Dat | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 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 | ||||||
Working Note:
Calculation of Depreciation
The method of calculating the Deprecation rate:
| Amount of Depreciation | = | Cost of assets- Estimated Realizable or Scrap value |
| Number of years of expected useful life |
Cost of assets = Cost of Machine = 2,00,000
Number of years of expected useful life = 6 years
Estimated Retaliated or Scrap value = 50,000
| Amount of Depreciation | = | 2,00,000 -50,000 |
| 6 | ||
| = | 25,000 |
Rate of Depreciation = 25,000 / 2,00,000 X 100 = 12.5%
https://tutorstips.com/depreciation/
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Also, Check out the solved question of all Chapters: –
D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
- Chapter 1 Evolution of Accounting & Basic Accounting Terms
- Chapter 2 Accounting Equations
- Chapter 3 Meaning and Objectives of Accounting
- Chapter 4 Double Entry System
- Chapter 5 Books of Original Entry – Journal
- Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
- Chapter 7 Books of Original Entry – Cash Book (Coming soon)
- Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
- Chapter 9 Ledger (Coming soon)
- Chapter 10 Trial Balance and Errors (Coming soon)
- Chapter 11 Bank Reconciliation Statement (Coming soon)
- Chapter 12 Depreciation (Coming soon)
- Chapter 13 Bills of Exchange (Coming soon)
- Chapter 14 Generally Accepted Accounting Principles(GAAP)
- Chapter 15 Bases of Accounting
- Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
- Chapter 17 Capital and Revenue
- Chapter 18 Provisions and Reserves
- Chapter 19 Final Accounts (Coming soon)
- Chapter 20 Final Accounts – With Adjustments (Coming soon)
- Chapter 21 Errors and their Rectification (Coming soon)
- Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
- Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
- Chapter 24 Computerised Accounting System (Coming soon)
- Chapter 25 Introduction to Accounting Information System (Coming soon)
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