Question No 19 Chapter No 12
19. On July 1, 2016 Pushpak Ltd. purchased a machinery for 5,70,000 and paid 30,000 for its overhauling and installation. Depreciation is provided @ 20% p.a. on Original Cost Method and the books are closed on 31st March every year. The machine was sold on 31st January 2019 for a sum of 1,60,000. You are required to show the Machinery Account and Provision for Depreciation Account for three years.
The solution of Question No 19 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jul.2016 | To Bank A/c (10,000+ 20,000) | 6,00,000 | |||||
| 31st Mar 2017 | By Balance C/d | 6,00,000 | |||||
| 6,00,000 | 6,00,000 | ||||||
| 1st Apr.2017 | To Balance b/f | 6,00,000 | |||||
| 31st Mar 2018 | By Balance C/d |
6,00,000 | |||||
| 6,00,000 | 6,00,000 | ||||||
| 1st Apr.2018 | To Balance b/f | 6,00,000 | 1st Jan.2019 | By Provision for Depreciation A/c |
3,10,000 | ||
| 1st Jan.2019 | By Bank A/c (Sale) | 1,60,000 | |||||
| 1st Jan.2019 | By Profit & Loss A/c | 1,30,000 | |||||
| 6,00,000 | 6,00,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Mar.2017 | By Depreciation A/c (for 9 Month) | 90,000 | |||||
| 31stMar.2017 | Balance c/d | 90,000 | |||||
| 90,000 | 90,000 | ||||||
| 31st Apr 2017 | By Balance b/d | 90,000 | |||||
| 31stMar.2018 | Balance c/d | 2,10,000 | 31st Mar 2018 | By Depreciation A/c | 1,20,000 | ||
| 2,10,000 | 2,10,000 | ||||||
| 31st Apr 2018 | By Balance b/d | 2,10,000 | |||||
| 1st Apr.2018 | To Balance b/f | 3,10,000 | 1st Jan.2019 | By Depreciation A/c (for 10 months) |
1,00,000 | ||
| 3,10,000 | 3,10,000 | ||||||
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 Jul. 2016 | 6,00,000 |
| Less: – Amount of Depreciation charged on the year 2016-17 | |
| 6,00,000 *20%* 9/12 | 90,000 |
| Amount of Depreciation charged on the year 2017-18 | |
| 6,00,000 *20%* 12/12 | 1,20,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 6,00,000 *20%* 10/12 | 1,00,000 |
| Book value of asset as on 30st Sep, 2019 | 2,90,000 |
| Sale Price of Machinery | 1,60,000 |
| Profit on the sale of the asset | 1,30,000 |
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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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