Question No 12 Chapter No 12
12. A Company purchased a second-hand machine on 1st April, 2016, for 30,000 and immediately spent 4,000 on its repair and 1,000 on its installation. On Oct. 1, 2018, the machine was sold for 25,000. Prepare Machine Account after charging depreciation @ 10% p.a. by diminishing balance method, assuming that the books are closed on 31st March every year. IGST was charged @ 12% on purchase and sale of machine.
The solution of Question No 12 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2106 | To Bank A/c (30,000 +4,000 + 1,000) | 35,000 | 31st Mar2017 | By Deprecation A/c | 3,500 | ||
| 31st Mar2017 | By Balance C/d | 31,500 | |||||
| 35,000 | 35,000 | ||||||
| 1st Apr 2017 | To Balance b/f | 31,500 | 31st Mar2018 | By Deprecation A/c | 3,150 | ||
| 31st Mar2018 | By Balance C/d |
28,350 |
|||||
| 31,500 | 31,500 | ||||||
| 1st Apr 2018 | To Balance b/f | 28,350 | 1st Oct 2018 | By Deprecation A/c | 1,418 | ||
| 1st Oct 2018 | By Bank A/c | 25,000 | |||||
| 1st Oct 2018 | By Profit & Loss A/c | 1,932 | |||||
| 25,350 | 25,350 | ||||||
Working Note:
Calculation of Profit or Loss on Sale
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Machinery Purchase on of Equipment as on 1st Apr. 2016 | 35,000 |
| Less: – Amount of Depreciation charged on the year 2016-17 | |
| 35,000 *10%* 12/12 | 15,000 |
| Amount of Depreciation charged on the year 2017-18 | |
| 35,0000 *10%* 12/12 | 3,150 |
| Amount of Depreciation charged on the year 2018-19 | |
| 28,350 *10%* 6/12 | 1,418 |
| Book value of asset as on 1st Oct , 2019 | 26,932 |
| Sale Price of Machinery | 25,000 |
| Loss on the sale of the asset | 1,932 |
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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.
