Question No 04 Chapter No 12
04. A company purchased a plant for 2,00,000 on 1st April 2016.it further spent 10,000 on its installation.it was brought in use from 1st August 2016 Depreciation is written off at 10% p.a. on straight line method. On 31st December 2018 the plant is sold for 1,20,000. prepare the plant A/c assuming that the books are closed on 31st March each year
The solution of Question No 04 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Aug.2016 | To Bank A/c | 2,10,000 | 31stMar2017 | By Deprecation A/c | 14,000 | ||
| 31stMar2017 | By Balance C/d | 1,96,000 | |||||
| 2,10,000 | 2,10,000 | ||||||
| 1st Apr 2017 | To Balance b/f | 1,96,000 | 31stMar2018 | By Deprecation A/c | 21,000 | ||
| 31stMar2018 | By Balance C/d |
1,75,000 |
|||||
| 1,96,000 | 1,96,000 | ||||||
| 1st Apr.2018 | To Balance b/f | 1,75,000 | 31st Dec 2018 | By Deprecation A/c | 15,750 | ||
| 31st Dec 2018 | By Bank A/c | 1,20,000 | |||||
| 31st Dec 2018 | By Profit & Loss A/c | 39,250 | |||||
| 1,75,000 | 1,75,000 | ||||||
Working Note:
Calculation of Depreciation
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Plant value of Equipment as of 1st Aug 2016 | 2,10,000 |
| Amount of Depreciation charged on the year 2016-17 | |
| 2,10,000 *10%* 8/12 | 14,000 |
| Amount of Depreciation charged on the year 2017-18 | |
| 2,10,000 *10%* 12/12 | 21,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 2,10,000 *10%* 9/12 | 15,750 |
| Book value of asset as on 31st Dec , 2018 | 1,59,250 |
| Sale Price of Machinery | 1,20,000 |
| Loss on the sale of the asset | 39,250 |
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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)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
