Question No 34 Chapter No 12
34. On 1st Jan. 2017, Panjim Dryfruits Ltd. bought a plant for 15,00,000. The company writes off depreciation @ 20% p.a. on Written Down Value Method and closes its books on 31st March every year. On 1st Oct. 2019, a part of the plant purchased on 1st Jan. 2020 for 3,00,000 was sold for 1,75,000. On 1st Jan. 2020 a fresh plant was purchased for 5,00,000. Prepare Plant A/c, Provision for Dep. A/c and Plant Disposal A/c.
The solution of Question No 34 Chapter No 12: –
| Dr. | Plant A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Jan.2017 | To Bank A/c (3,00,000 + 12,00,000) | 15,00,000 | |||||
| 31st Mar 2017 | By Balance C/d | 15,00,000 | |||||
| 15,00,000 | 15,00,000 | ||||||
| 1st Apr.2017 | To Balance b/f | 15,00,000 | |||||
| 31st Mar 2018 | By Balance C/d | 15,00,000 |
|||||
| 15,00,000 |
15,00,000 |
||||||
| 1st Apr.2018 | To Balance b/f | 15,00,000 | |||||
| 31st Mar 2019 |
By Balance C/d |
15,00,000 | |||||
| 15,00,000 | 15,00,000 | ||||||
| 1st Apr.2019 | To Balance b/f | 15,00,000 | 31st Oct 2019 | By Plant Disposal A/c | 3,00,000 | ||
| 1st Jan.2020 | To Bank A/c | 5,00,000 | |||||
| 31st Mar 2020 |
By Balance C/d |
17,00,000 |
|||||
| 20,00,000 |
20,00,000 | ||||||
| Dr. | Plant Disposal A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Oct 2019 | To Plant A/c | 3,00,000 | 1st Oct 2020 | By Provision for Depreciation A/c | 1,35,840 | ||
| 1st Oct 2020 | To Profit & Loss A/c | 10,840 | 1st Oct 2020 | By Bank A/c (Sale) | 1,75,000 | ||
| 3,10,840 | 3,10,840 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Mar 2018 | By Depreciation A/c (15,000 + 60,000) | 75,000 | |||||
| 31stMar.2018 | Balance c/d | 75,000 | |||||
| 75,000 | 75,000 | ||||||
| 31st Apr 2018 | By Balance b/d | 75,000 | |||||
| 31st Mar.2018 | Balance c/d | 3,60,000 | 31st Mar 2018 | By Depreciation A/c (57,000 + 2,28,000) | 2,85,000 | ||
| 3,60,000 | 3,60,000 | ||||||
| 31st Apr 2018 | By Balance b/d | 3,60,000 | |||||
| 31stMar.2019 | Balance c/d | 5,88,000 |
31st Mar 2019 |
By Depreciation A/c (45,600 + 1,8,2,400) |
2,28,000 |
||
| 5,88,000 |
5,88,000 |
||||||
| 31stOct.2019 | To Machine Disposal A/c | 1,35,840 | 31st Apr 2019 | By Balance b/d | 5,88,000 | ||
| 1st Oct 2019 | By Depreciation A/c (6 Months) | 18,240 | |||||
| 31stMar.2020 | To Balance b/f | 6,41,230 |
31st Mar.2019 | By Depreciation A/c (1,45,920 + 25,000) | 1,70,920 | ||
| 7,77,160 | 7,77,160 | ||||||
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 Jun. 2017 | 3,00,000 |
| Less: – Amount of Depreciation charged on the year 2017-18 | |
| 3,00,000 *20%* 3/12 | 15,000 |
| Amount of Depreciation charged on the year 2017-18 | |
| 2,85,000 *20%* 12/12 | 57,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 2,28,000 *20%* 12/12 | 45,600 |
| Amount of Depreciation charged on the year 2019-20 | |
| 1,82,400 *20%* 3/12 | 18,240 |
| Book value of asset as of 1st Oct 2019 | 1,64,160 |
| Sale Price of Machinery | 1,75,000 |
| Profit on the sale of the asset | 10,840 |
Note: In order to make easy calculation, the plant purchased on Jan 01, 2012, has been divided into two parts i.e.
P1 and P2. Thus,
P1: Rs 3,00,000 (sold for Rs 1,75,000 on Oct. 01, 2014)
P2: Rs 12,00,000
https://tutorstips.com/depreciation/
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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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