Question No 28 Chapter No 12
28. The following balances appear in the books of Y Ltd:
| Machinery A/c as on 1-4-2014 | 8,00,000 |
| Provision for Depreciation A/c as on 1-4-2014 | 3,10,000 |
On 1-7-2014, machinery which was purchased on 1-4-2011 for 1,20,000 was sold for 50,000 and on the same date another machinery was purchased for 3,20,000. The firm has been charging depreciation at 15% p.a. on Original Cost Method and closes its books on 31st March every year. Prepare the Machinery A/c and Provision for Depreciation A/c for the year ending 31st March 2015.
The solution of Question No 28 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2014 | To Balance b/f(6,80,000 + 1,20,000) | 8,00,000 | 1st Jul.2014 | By Provision for Depreciation A/c |
58,500 | ||
| 1st Jul.2014 | To Bank A/c | 3,20,000 | 1st Jul.2014 | By Bank A/c (Sale) | 50,000 | ||
| 1st Jul.2014 | By Profit & Loss A/c | 11,500 | |||||
| 31st Mar 2011 | By Balance C/d | 10,00,000 | |||||
| 11,20,000 | 11,20,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Jul.2014 | To Machinery A/c (54,000 +4,500) | 58,500 | 31st Apr 2014 | By Balance b/d | 3,10,000 | ||
| 31st Mar.2015 | By Depreciation A/c* | 1,42,500 | |||||
| 31stMar.2015 | Balance c/d | 3,94,000 | |||||
| 4,52,500 | 4,52,500 | ||||||
Working Note:
Calculation of Profit or Loss on Sale M1
| Statement Showing the Profit and loss on the sale of Plant | |
| Particulars |
Amount |
| Machinery Purchase on of Equipment as on 1st Apr. 2011 | 1,20,000 |
| Less: – Depreciation for 3 Years 3 months | 58,500 |
| Book value of asset as on 1st Jul, 2014 | 61,500 |
| Sale Price of Machinery | 50,000 |
| Loss on the sale of the asset | 11,500 |
| *Depreciation charged during the year | |
| Particulars |
Amount |
| On Rs 6,80,000 @ 15% | 1,02,000 |
| On Rs 1,20,000 @ 15% for 3 months | 4,500 |
| On Rs 3,20,000 @ 15% for 9 months | 36,000 |
| 1,42,500 | |
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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.
