Question No 36 Chapter No 12
36. A limited company purchased on 01-01-2017 a plant for 38,000 and spent 2,000 for carriage and brokerage. On 01-04-2018 it purchased additional plant costing 20,000. On 01-08-2019 the plant purchased on 01-01-2017 was sold for 25,000. On the same date, the plant purchased on 01-04-2018 was sold at a profit of 2,800. Depreciation is provided @10% per annum on diminishing balance method every year. Accounts are closed on 31st December every year. Show the plant A/c for 3 years.
The solution of Question No 36 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(38,000 + 2,000) | 40,000 | 31st Dec 2017 | By Deprecation A/c | 4,000 | ||
| 31st Dec2017 | By Balance C/d | 40,000 | |||||
| 40,000 | 40,000 | ||||||
| 1st Jan.2018 | To Balance b/f | 36,000 | |||||
| 1st Jan.2018 | To Bank A/c | 20,000 | 31st Dec2018 | By Balance C/d | 56,000 | ||
| 56,000 |
56,000 | ||||||
| 1st Jan 2019 | To Balance b/f | 50,900 | 1st Aug 2019 | By Deprecation A/c | 1,890 | ||
| 1st Aug2019 | To Profit & loss A/c | 2,800 | 1st Aug 2019 | By Bank A/c | 25,000 | ||
| 1st Aug 2019 | By Profit & loss A/c | 5,510 | |||||
| 1st Aug 2019 | By Deprecation A/c | 1,080 | |||||
| 31st Mar 2019 |
By Balance C/d |
20,220 | |||||
| 53,700 | 53,700 | ||||||
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 Jan. 2017 | 40,000 |
| Less: – Amount of Depreciation charged on the year 2017-18 | |
| 40,000 *10%* 12/12 | 4,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 36,000 *10%* 12/12 | 3,600 |
| Amount of Depreciation charged on the year 2019-20 | |
| 32,400 *10%* 8/12 | 1,890 |
| Book value of asset as of 1st Oct 2019 | 30,510 |
| Sale Price of Machinery | 25,000 |
| Profit on the sale of the asset | 5,510 |
| Statement Showing the Profit and loss on the sale of Plant | |
| Particulars |
Amount |
| Machinery Purchase on of Equipment as on 1stApr. 2018 | 20,000 |
| Amount of Depreciation charged on the year 2018-19 | |
| 36,000 *10%* 12/12 | 1,500 |
| Amount of Depreciation charged on the year 2019-20 | |
| 32,400 *10%* 8/12 | 1,080 |
| Book value of asset as on 1st Aug, 2019 | 17,420 |
| Sale Profit on sale | 2,800 |
| Sale Value | 20,220 |
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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.
