Question No 26 Chapter No 12
26. On 1st April 2012, Banglore Silk Ltd. purchased machinery for 20,00,000. It provides depreciation at 10% p.a. on the Written Down Value Method and closes its books on 31st March every year. On 1st July 2014, a part of the machinery purchased on 1st April 2012 for 4,00,000 was sold for 3,20,000. On 1st November 2014, new machinery was purchased for 4,80,000. You are required to prepare Machinery Account, Depreciation Account, and Provision for Depreciation Account for three years ending 31st March 2015.
The solution of Question No 26 Chapter No 12: –
| Dr. | Plant A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2012 | To Bank A/c(4,00,000+ 16,00,000) | 20,00,000 | |||||
| 31st Mar 2013 | By Balance C/d | 20,00,000 | |||||
| 20,00,000 | 20,00,000 | ||||||
| 1st Apr.2013 | To Balance b/f | 20,00,000 | |||||
| 31st Mar 2014 | By Balance C/d |
20,00,000 | |||||
| 20,00,000 | 20,00,000 | ||||||
| 1st Apr.2014 | To Balance b/f | 12,00,000 | 1st Jul.2014 | By Provision for Depreciation A/c |
84,100 | ||
| 1st Jun.2014 | To Profit & Loss A/c | 4,100 | 1st Jul.2014 | By Bank A/c (Sale) | 3,20,0000 | ||
| 1stNov.2014 | To Bank A/c | 4,80,000 | |||||
| 31st Mar 2012 | By Balance C/d(3,00,000 + 6,00,000) | 20,80,000 | |||||
| 24,81,100 | 24,81,100 | ||||||
| Dr. | Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31stMar2013 | To Provision for Depreciation A/c | 2,00,000 | |||||
| 31st Mar 2013 | By Profit & Loss A/c | 2,00,000 | |||||
| 2,00,000 | 2,00,000 | ||||||
| 31stMar.2014 | To Provision for Depreciation A/c | 1,80,000 | |||||
| 31st Mar 2014 | By Profit & Loss A/c | 1,80,000 | |||||
| 1,80,000 | 1,80,000 | ||||||
| 1st Apr.2015 | To Provision for Depreciation A/c | 1,57,700 | |||||
| 1,57,700 | 1,57,700 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Mar.2013 | By Depreciation A/c (40,000 + 1,60,000) | 2,00,000 | |||||
| 31stMar.2013 | Balance c/d | 2,00,000 | |||||
| 2,00,000 | 2,00,000 | ||||||
| 31st Apr 2013 | By Balance b/d | 2,00,000 | |||||
| 31stMar.2014 | Balance c/d | 3,80,000 | 31st Mar 2014 | By Depreciation A/c (36,000 + 1,44,000) | 1,80,000 | ||
| 3,80,000 | 3,80,000 | ||||||
| 31st Jul.2011 | To Machinery A/c (40,000+ 36,000 + 8,100) | 84,000 | 31st Apr 2014 | By Balance b/d | 3,80,000 | ||
| 31st Jul.2014 | By Depreciation A/c (3 Months) | 8,100 | |||||
| 1st Apr.2012 | To Balance b/f | 4,53,600 | 31st Mar.2015 | By Depreciation A/c (1,29,600 + 20,000) | 1,49,600 | ||
| 5,57,700 | 5,57,700 | ||||||
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 Apr. 2012 | 4,00,000 |
| Less: – Amount of Depreciation charged on the year 2012-13 | |
| 4,00,000 *10%* 12/12 | 40,000 |
| Amount of Depreciation charged on the year 2013-14 | |
| 3,60,000 *10%* 12/12 | 36,000 |
| Amount of Depreciation charged on the year 2014-15 | |
| 3,24,000 *10%* 3/12 | 8,100 |
| Book value of asset as on 30st Jul, 2014 | 3,15,900 |
| Sale Price of Machinery | 3,20,000 |
| Loss on the sale of the asset | 4,100 |
Note: In order to make easy calculation, machinery purchased on Apr. 01, 2012 has been divided into two parts i.e. M1 and M2.
Thus,
M1: Rs 4,00,000 (sold for Rs 3,20,000 on July 01, 2014)
M2: Rs 16,00,000
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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)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
