Question No 30 Chapter No 12
30.Books of Mumbai Chemicals Ltd. showed the following balances on 1st April 2019:
| Machinery Account | 10,00,000 |
| Provision for Depreciation on Furniture Account | 4,05,000 |
On 1st April, 2019, a machine which had a cost of 2,00,000 on 1st October, 2016 was sold for 80,000. The firm writes off depreciation @ 10% p.a. under the Reducing Balance Method and its accounts are made up on 31st March each year. You are required to prepare the Machinery A/c and Provision for Depreciation A/c for the year ending 31st March, 2020.
The solution of Question No 30 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2018 | To Balance b/f(8,00,000 + 2,00,000) | 10,00,000 | 1st Apr.2019 | By Provision for Depreciation A/c |
46,100 | ||
| 1st Apr.2019 | By Bank A/c (Sale) | 80,000 | |||||
| 1st Apr.2019 | By Profit & Loss A/c | 73,900 | |||||
| 31st Mar 2019 | By Balance C/d | 8,00,000 | |||||
| 10,00,000 | 10,00,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31stApr.2019 | To Machinery A/c | 46,100 | 31stApr.2018 | By Balance b/d (46,100 + 3,28,900) | 4,05,000 | ||
| 31stApr.2019 | By Depreciation A/c* | 44,110 | |||||
| 31stMar.2019 | Balance c/d | 18,250 | |||||
| 4,49,110 | 4,49,110 | ||||||
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 Oct. 2016 | 2,00,000 |
| Less: – Amount of Depreciation charged on the year 2016-17 | |
| 2,00,000 *10%* 6/12 | 10,000 |
| Amount of Depreciation charged on the year 2017-18 | |
| 1,90,000 *10%* 12/12 | 19,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 1,71,000 *10%* 12/12 | 17,100 |
| Book value of asset as on 1st Apr, 2019 | 1,53,900 |
| Sale Price of Machinery | 80,000 |
| Loss on the sale of the asset | 73,900 |
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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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