Question No 06 Chapter No 12
06. A company purchased on 1st July 2015 machinery costing 30,000. it purchases further machinery on 1st January 2016 costing 20,000 and on 1st October 2016 costing 10,000. on 1st April 2017, the machinery installed on 1st July 2015 become absolute and was sold for 3,000
Show the Machinery Account for 3 years charging depreciation by fixed installment Method at 10% per annum. Accounts are closed on 31st March every year.
The solution of Question No 06 Chapter No 12: –
| Dr. | Plant & Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jul.2015 | To Bank A/c | 30,000 | 31st Mar2016 | By Deprecation A/c(2,250 +500) | 2,750 | ||
| 1st Jan.2016 | To Bank A/c | 20,000 | 31st Mar2016 | By Balance C/d | 47,250 | ||
| 50,000 | 50,000 | ||||||
| 1st Apr 2016 | To Balance b/f | 47,250 | 31st Mar2017 | By Deprecation A/c | 5,500 | ||
| 1st Oct 2016 | To Bank A/c | 10,000 | 31st Mar2017 | By Balance C/d |
53,250 |
||
| 57,250 | 57,250 | ||||||
| 1st Apr 2017 | To Balance b/f | 51,750 | 1st Apr 2017 | By Deprecation A/c | 3,000 | ||
| 1st Apr 2017 | By Loss A/c | 21,750 | |||||
| 31st Mar2018 | By Deprecation A/c(2,000 + 1,000) | 3,000 | |||||
| 1st Apr 2017 | By Balance C/d | 24,000 |
|||||
| 51,750 | 51,750 |
||||||
Working Note:
Calculation of Depreciation
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Plant value of Equipment as on 1st Jul, 2015 | 30,000 |
| Less: – Amount of Depreciation charged on the year 2015-16 | |
| 30,000 *10%* 9/12 | 2,250 |
| Amount of Depreciation charged on the year 2016-17 | |
| 30,000 *10%* 12/12 | 3,000 |
| Book value of asset as of 31st Dec 2018 | 24,750 |
| Sale Price of Machinery | 3,000 |
| Loss on the sale of the asset | 21,750 |
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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.
