Question No 16 Chapter No 12
16. A company whose accounting year is calendar year purchased machinery for 5,00,000on 1st January 2010. Additional machinery was acquired for 3,00,000 on 1st September 2011 and for 2,40,000 on 1st December 2014. Certain machinery purchased for 1,00,000 on 1st January 2010 was 2010 was sold for 48,200 on 30th June 2013.
Prepare the machinery account upto the year 2014 after providing depreciation at 10% per annum on reducing instalment method.
The solution of Question No 16 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jan.2010 | To Bank A/c | 5,00,000 | 31st Dec 2011 | By Deprecation A/c | 50,000 | ||
| 31st Dec 2011 | By Balance C/d | 4,50,000 | |||||
| 5,00,000 | 5,00,000 | ||||||
| 1st Jan.2011 | To Balance b/f | 4,50,000 | 31st Dec 2012 | By Deprecation A/c(45,000+10,000) | 55,000 | ||
| 1st Sep.2011 | To Bank A/c | 3,00,000 | 31st Dec 2012 | By Balance C/d |
6,95,000 | ||
| 7,50,000 | 7,50,000 | ||||||
| 1st Jan.2012 | To Balance b/f | 6,95,000 | 31st Dec 2013 | By Deprecation A/c(40,500 + 29,000) | 69,500 | ||
| 31st Dec 2013 | By Balance C/d (3,64,500 + 2,61,000) | 6,25,500 |
|||||
| 6,95,000 |
6,95,000 |
||||||
| 1st Jan.2013 | To Balance b/f | 6,25,500 | 1st Jun 2014 | By Deprecation A/c | 3,645 | ||
| 1st Dec.2014 | To Profit & Loss A/c | 2,40,000 | 1st Jun 2014 | By Bank A/c | 48,200 | ||
| 1st Jun 2014 | By Profit & Loss A/c | 21,055 | |||||
| 31st Dec 2014 | By Deprecation A/c (29,160 + 26,100+2,000) | 57,260 | |||||
| 31st Dec 2014 | By Balance C/d | 7,35,340 | |||||
| 8,65,500 | 8,65,500 | ||||||
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 Jan. 2010 | 1,00,000 |
| Less: – Amount of Depreciation charged on the year 2010-11 | |
| 1,00,000 *10%* 12/12 | 10,000 |
| Amount of Depreciation charged on the year 2011-12 | |
| 90,000 *10%* 12/12 | 9,000 |
| Amount of Depreciation charged on the year 2012-13 | |
| 81,000 *10%* 12/12 | 8,100 |
| Amount of Depreciation charged on the year 2018-19 | |
| 72,900 *10%* 11/12 | 3,645 |
| Book value of asset as of 1st Oct 2019 | 69,255 |
| Sale Price of Machinery | 48,200 |
| Loss on the sale of the asset | 21,055 |
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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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