Question No 11 Chapter No 12
11. A plant is purchased for 60,000 on 1st April 2009. It is estimated that the residual value of this plant at the end of its working life of 10 years will be 20,920. Depreciation is to be provided at 10% p.a. on the diminishing balance method.
You are required to show the Plant Account for 4 years, assuming that the books are closed on 31st March every year.
The solution of Question No 11 Chapter No 12: –
| Dr. | Plant & Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2106 | To Bank A/c | 60,000 | 31st Mar2017 | By Deprecation A/c | 6,000 | ||
| 31st Mar2017 | By Balance C/d | 54,000 | |||||
| 60,000 | 60,000 | ||||||
| 1st Apr 2017 | To Balance b/f | 54,000 | 31st Mar2018 | By Deprecation A/c | 5,400 | ||
| 31st Mar2018 | By Balance C/d |
48,600 |
|||||
| 54,000 | 54,000 | ||||||
| 1st Apr 2018 | To Balance b/f | 48,600 | 31stMar2019 | By Deprecation A/c | 4,860 | ||
| 31stMar2019 | By Balance C/d | 43,730 |
|||||
| 48,600 | 48,600 | ||||||
| 1st Apr.2019 | To Balance b/f | 43,740 | 31stMar2020 | By Deprecation A/c | 4,374 | ||
| 31stMar2020 | By Balance C/d | 39,336 |
|||||
| 43,740 |
43,740 |
||||||
Note: When deprecation is charged as per the written down value method, the scrap value of the asset is ignored.
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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.
Question 2
(a) The Machinery Account of a Factory showed a balance of 95 Lakhs on 1st April, 2020. The Books of Accounts
Depreciation is written off of the Factory are closed on 31st March every year and @ 10% per annum under the Diminishing Balance Method. On 1st September, 2020 a new machine was acquired at a cost of 14 Lakhs and 44,600 was incurred on the same day as installation charges for erecting the machine. On 1st September, 2020 a machine which had cost 21,87,000 on 1st April, 2018 was sold for 3,75,000. Another machine which had cost 21,85,000 on 1st April, 2019 was scrapped on 1st September, 2020 and it realized nothing.
Prepare Machinery Account for the year ended 31st March, 2021. Allow the same rate of depreciation as in the past and calculate depreciation to the nearest multiple of a rupee. Also show all the necessary working notes.
(10 Marks)