Question No 07 Chapter No 12
07. On 1st January 2016 a Ltd. Purchased a machine for 2,40,000 and spent 10,000 on its erection. On 1st July 2016 an additional machinery costing 1,00,000 was purchased. On 1st July 2018 the machine purchased on 1st January 2016 was sold for 1,43,000 and on the same date, a new machine was purchased at a cost of 2,00,000
Show the Machinery account for first three calendar years after charging depreciation at 5% by the straight line Method.
The solution of Question No 07 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jan.2016 | To Bank A/c | 2,50,000 | 31st Dec 2017 | By Deprecation A/c(12,500 + 2,500) | 15,000 | ||
| 1st Jul 2017 | To Bank A/c | 1,00,000 | 31st Dec 2017 | By Balance C/d | 3,35,000 | ||
| 3,50,000 | 3,50,000 | ||||||
| 1st Jan 2017 | To Balance b/f | 3,35,000 | 31st Dec 2018 | By Deprecation A/c(12,500 +5,000) | 17,500 | ||
| 31st Dec 2018 | By Balance C/d |
3,17,500 |
|||||
| 3,35,000 | 3,35,000 | ||||||
| 1st Apr 2018 | To Balance b/f | 3,17,500 | 1st Jul 2018 | By Deprecation A/c | 6,250 | ||
| 1st Jul 2018 | To Bank A/c | 2,00,000 | 1st Jul 2018 | By Loss A/c | 1,43,000 | ||
| 1st Jul 2018 | By Deprecation A/c(2,000 + 1,000) | 75,750 | |||||
| 1st Mar 2019 | By Balance C/d | 10,000 | |||||
| 31st Mar 2017 | By Balance C/d | 2,82,500 |
|||||
| 5,17,500 | 5,17,500 | ||||||
Working Note:
Calculation of Depreciation
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Plant value of Equipment as on 1st Jan, 2016 | 2,50,000 |
| Less: – Amount of Depreciation charged on the year 2016-17 | |
| 2,50,000 *5%* 12/12 | 12,500 |
| Amount of Depreciation charged on the year 2017-18 | |
| 2,50,000 *5%* 12/12 | 12,500 |
| Amount of Depreciation charged on the year 2018-19 | |
| 2,50,000 *5%* 6/12 | 6,250 |
| Book value of an asset as of 31st Dec 2018 | 2,18,750 |
| Sale Price of Machinery | 1,43,000 |
| Loss on the sale of the asset | 75,750 |
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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)
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