Question No 05 Chapter No 12
05. On 1st January 2016, a company purchased a plant for 3,00,000 Depreciation is charged 20% p.a. on the original cost each year. On 30th November 2018, the plant is sold for 1,00,000. prepare the Plant A/c assuming that the books are closed on 31st March every year.
The solution to Question No 05 Chapter No 12: –
| Dr. | Plant & Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 2016 | 2016 | ||||||
| 1 Jan | To Bank A/c | 3,00,000 | 31 Mar | By Dep. A/c | 15,000 | ||
| 31 Mar | By Bal. C/d | 3,85,000 | |||||
| 3,00,000 | 3,00,000 | ||||||
| 2016 | 2017 | ||||||
| 1 Apr | To Bal. b/f | 3,85,000 | 31 Mar | By Dep. A/c | 60,000 | ||
| 31 Mar | By Bal. C/d |
2,25,000 |
|||||
| 3,85,000 | 3,85,000 | ||||||
| 2017 | 2018 | ||||||
| 1 Apr | To Balance b/f | 2,25,000 | 31 Mar | By Dep. A/c | 60,000 | ||
| 31Mar 2018 | By Bal. C/d | 1,65,000 |
|||||
| 2,25,000 |
2,25,000 |
||||||
| 2018 | 2018 | ||||||
| 1 Apr | To Balance b/f | 1,65,000 | 30 Nov | By Dep. A/c | 40,000 | ||
| 30 Nov | By Bank A/c | 1,00,000 | |||||
| 30 Nov | By P/L A/c | 25,000 | |||||
| 1,65,000 | 1,65,000 | ||||||
Working Note:
Calculation of Depreciation
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Plant value of Equipment as of 1st Jan 2016 | 3,00,000 |
| Less: – Amount of Depreciation charged on the year 2015-16 | |
| 3,00,000 *20%* 3/12 | 15,000 |
| Amount of Depreciation charged in the year 2016-17 | |
| 3,00,000 *20%* 12/12 | 60,000 |
| Amount of Depreciation charged in the year 2017-18 | |
| 3,00,000 *20%* 12/12 | 60,000 |
| Amount of Depreciation charged in the year 2018-19 | |
| 3,00,000 *20%* 8/12 | 40,000 |
| Book value of an asset as of 31st Dec 2018 | 1,25,000 |
| Sale Price of Machinery | 1,00,000 |
| Loss on the sale of the asset | 25,000 |
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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)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
How are you getting 40,000 in the year 2018 when we are selling the plant because in my calculation it’s 45,000
Sorry, it’s Typing mistake.
Please check it now Corrected