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

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	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
1st Jul.2015	To Bank A/c (8,000 + 3,500)		11,500	31st Mar2016	By Deprecation A/c		863
				31st Mar2016	By Balance C/d		10,637
			11,500				11,500
1st Apr 2016	To Balance b/f		10,637	31st Mar2017	By Deprecation A/c		1,150
				31st Mar2017	By Balance C/d		9,487
			10,637				10,637
1st Apr 2017	To Balance b/f		9,487	31st Mar2018	By Deprecation A/c		1,150
				31st Mar2018	By Balance C/d		8,337
			9,487				9,487
1st Apr.2018	To Balance b/f		8,337	30thSep 2019	By Deprecation A/c		575
				30thSep 2019	By Bank A/c		6,500
				30thSep 2019	By Profit & Loss A/c		1,262
			8,337				8,337

Working Note:
Calculation of Depreciation

Statement Showing profit or loss on the sale of Machinery
Particulars	Amount
Purchase value of Equipment as of 1st Jul 2015	50,000
Less: – Amount of Depreciation charged on the year 2015-16
11,500 *10%* 9/12	863
Amount of Depreciation charged on the year 2016-17
11,500 *10%* 12/12	1,150
Amount of Depreciation charged on the year 2017-18
11,500 *10%* 12/12	1,150
Amount of Depreciation charged on the year 2018-19
11,500 *10%* 6/12	575
Book value of an asset as on 30th Sep , 2019	7,762
Sale Price of Machinery	6,500
Loss on the sale of the asset	1,262

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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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