Question No 24 Chapter No 12
24. X Ltd. purchased a plant on 1st July 2010 costing 5,00,000. It purchased another plant on 1st September 2010 costing 3,00,000. On 31st December 2012, the plant purchased on 1st July 2010 got out of order and was sold for 2,15,000. Another plant was purchased to replace the same for 6,00,000. Depreciation is to be provided at 20% p.a. according to Written Down Value Method. The accounts are closed every year on 31st March.
Show the Plant Account and Provision for Depreciation Account.
The solution of Question No 24 Chapter No 12: –
| Dr. | Plant A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jul.2010 | To Bank A/c(P1) | 5,00,000 | |||||
| 1st Sep.2010 | To Bank A/c(P2) | 3,00,000 | 31st Mar 2011 | By Balance C/d | 8,00,000 | ||
| 8,00,000 | 8,00,000 | ||||||
| 1st Apr.2011 | To Balance b/f | 8,00,000 | |||||
| 31st Mar 2012 | By Balance C/d |
8,00,000 | |||||
| 8,00,000 | 8,00,000 | ||||||
| 1st Apr.2012 | To Balance b/f | 8,00,000 | 31st Dec.2012 | By Provision for Depreciation A/c |
2,11,000 | ||
| 31stDec.2012 | To Bank A/c | 6,00,000 | 31st Dec.2012 | By Bank A/c (Sale) | 2,15,000 | ||
| 31st Dec.2012 | By Profit & Loss A/c | 74,000 | |||||
| 31st Mar 2012 | By Balance C/d(3,00,000 + 6,00,000) | 9,00,000 | |||||
| 14,00,000 | 14,00,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Mar 2011 | By Depreciation A/c (75,0000 + 35,000) | 1,10,000 | |||||
| 31stMar.2011 | Balance c/d | 1,10,000 | |||||
| 1,10,000 | 1,10,000 | ||||||
| 31st Apr 2011 | By Balance b/d | 1,10,000 | |||||
| 31stMar.2012 | Balance c/d | 2,48,000 | 31st Mar 2012 | By Depreciation A/c (85,000 + 53,000) | 1,38,000 | ||
| 2,48,000 | 2,48,000 | ||||||
| 31st Jul.2011 | To Machinery A/c (75,000 + 85,000 + 66,000) | 2,11,000 | 31st Apr 2012 | By Balance b/d | 2,02,500 | ||
| 31st Dec.2012 | By Depreciation A/c (9 Months) | 51,000 | |||||
| 1st Apr.2012 | To Balance b/f | 1,60,400 | 31st Mar.2012 | By Depreciation A/c (60,000 + 42,000) | 72,400 | ||
| 3,71,400 | 3,71,400 | ||||||
Working Note:
Calculation of Profit or Loss on Sale M1
| Statement Showing profit or loss on the sale of Machinery | |
| Particulars |
Amount |
| Machinery Purchase on of Equipment as on 1st Jul. 2010 | 5,00,000 |
| Less: – Amount of Depreciation charged on the year 2010-11 | |
| 5,00,000 *20%* 6/12 | 75,000 |
| Amount of Depreciation charged on the year 2011-12 | |
| 5,00,000 *20%* 12/12 | 85,000 |
| Amount of Depreciation charged on the year 2012-13 | |
| 5,00,000 *20%* 9/12 | 51,000 |
| Book value of the asset as of 30th Jul 2011 | 2,89,000 |
| Sale Price of Machinery | 2,15,000 |
| Loss on the sale of the asset | 74,000 |
https://tutorstips.com/depreciation/
Comment if you have any question.
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.
