Question No 14 Chapter No 12
14. A Company purchased a machinery for 50,000 on 1st Oct., 2016. Another machinery costing 10,000 was purchased on 1st Dec., 2017. On 31st March, 2019, the machinery purchased in 2016 was sold at a loss of 5,000. The Company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed on 31st March every year. Prepare Machinery account for 3 years.
The solution of Question No 14 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Oct. 2116 | To Bank A/c (36,000 + 4,000) | 50,000 | 31st Mar2017 | By Deprecation A/c (6 months) | 3,750 | ||
| 31st Mar2017 | By Balance C/d(36,000 + 19,000) | 46,250 | |||||
| 50,000 | 50,000 | ||||||
| 1st Apr 2017 | To Balance b/f | 46,250 | 31st Mar2018 | By Deprecation A/c (6,938 + 500) | 7,438 | ||
| 1st Dec.2108 | To Bank A/c | 10,000 | 31st Mar2018 | By Balance C/d(39,312 + 9,500 ) |
28,350 |
||
| 56,250 | 56,250 | ||||||
| 1st Apr 2018 | To Balance b/f | 48,812 | 31st Mar2019 | By Deprecation A/c | 5,897 | ||
| 31st Mar2019 | By Bank A/c | 28,415 | |||||
| 31st Mar2019 | By Profit & Loss A/c | 5,000 | |||||
| 31st Mar2019 | By Deprecation A/c (1,710 + 3,200) | 1,425 | |||||
| 31st Mar2019 | By Balance C/d | 8,075 | |||||
| 48,812 | 48,812 | ||||||
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 Oct. 2016 | 40,000 |
| Less: – Amount of Depreciation charged on the year 2016-17 | |
| 50,000 *15%* 6/12 | 3,750 |
| Amount of Depreciation charged on the year 2017-18 | |
| 46,250 *15%* 12/12 | 6,938 |
| Amount of Depreciation charged on the year 2018-19 | |
| 39,312 *15%* 12/12 | 5,897 |
| Book value of asset as of 1st Oct 2019 | 33,415 |
| Sale Price of Machinery | 28,415 |
| Loss on the sale of the asset | 5,000 |
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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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