Question No 09 Chapter No 12
09. On 1st April 2010, Plant and Machinery was purchased for 1,20,000. New machinery was purchased on 1st Oct. 2010, for 50,000 and on 1st July 2011, for 25,000.
On 1st January 2013, the machinery of the original value of 20,000 which was included in the machinery purchased on 1st April 2010,
was sold for 6,000. Prepare Plant & Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method.
Accounts are closed on 31st March every year.
The solution of Question No 09 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2010 | To Bank A/c(20,000+1,00,000 ) | 1,20,000 | 31st Mar2011 | By Deprecation A/c(2,000+10,000+2,500) | 14,500 | ||
| 1st Oct.2010 | To Bank A/c | 50,000 | 31st Mar 2011 | By Balance C/d | 54,000 | ||
| 1,70,000 | 1,70,000 | ||||||
| 1st Apr.2011 | To Balance b/f | 1,55,500 | 31stMar2012 | By Deprecation A/c(2,000+10,000+5,000+1,875) | 18,875 | ||
| 1st Jul.2011 | To Bank A/c | 25,000 | 31st Mar2012 | By Balance C/d |
1,61,625 |
||
| 1,80,500 | 1,80,500 | ||||||
| 1st Apr 2012 | To Balance b/f | 1,61,625 | 30th Jan 2013 | By Deprecation A/c | 1,500 | ||
| 30th Jan 2013 | By Bank A/c (Sale of M1) A/c | 6,000 | |||||
| 30th Jan 2013 | By Profit & Loss A/c | 8,500 | |||||
| 1st Mar 2018 | By Deprecation A/c (10,000 + 5,000 +2,500) | 17,500 | |||||
| 31st Mar2018 | By Balance C/d | 1,28,125 |
|||||
| 1,61,625 | 1,61,625 | ||||||
Working Note:
Calculation of Depreciation
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Machinery Purchase on of Equipment as on 1st Apr. 2010 | 20,000 |
| Less: – Amount of Depreciation charged on the year 2010-11 | |
| 20,000 *10%* 12/12 | 2,000 |
| Amount of Depreciation charged on the year 2011-12 | |
| 20,000 *10%* 12/12 | 2,000 |
| Amount of Depreciation charged on the year 2013-14 | |
| 20,000 *10%* 9/12 | 1,500 |
| Book value of asset as of 1st Jan 2013 | 14,500 |
| Sale Price of Machinery | 6,000 |
| Loss on the sale of the asset | 8,500 |
Note: In order to make easy calculation plant and machinery purchased on April 01, 2010 has been divided into two parts i.e. M1 and M2. Thus, M1: Rs 20,000 (sold for Rs 6,000) M2: Rs 1,00,000 (remains in the business)
https://tutorstips.com/depreciation/
Comment if you have any question.
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)
- Chapter 7 Books of Original Entry – Cash Book
- 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.
