Question No 37 Chapter No 12
37. A Limited purchased a machine on 1st July 2017 for 3,00,000 and on 1st January 2019 bought another machinery for 2,00,000. On 1st August 2019 machine bought in 2017 was sold for 1,60,000. Another machine was bought for 1,50,000 on 1st October 2019. It was decided to provide depreciation @ 10% p.a. on written down value method assuming books are closed on 31st March each year. Prepare Machinery Account and Provision for depreciation account for 3 years.
The solution of Question No 37 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 | |||||
| 31st Dec2017 | By Balance C/d | 3,00,000 | |||||
| 3,00,000 | 3,00,000 | ||||||
| 1st Jan.2018 | To Balance b/f | 3,00,000 | |||||
| 1st Jan.2019 | To Bank A/c | 2,00,000 | 31st Dec2018 | By Balance C/d | 5,00,000 | ||
| 5,00,000 |
5,00,000 | ||||||
| 1st Jan 2019 | To Balance b/f | 5,00,000 | 1st Aug 2019 | By Provision for Depreciation A/c | 58,575 | ||
| 1st Oct.2019 | To Bank A/c | 1,50,000 | 1st Aug 2019 | By Bank A/c | 1,60,000 | ||
| 1st Aug 2019 | By Profit & loss A/c | 81,425 | |||||
| 31st Mar 2019 |
By Balance C/d |
3,50,000 | |||||
| 6,50,000 | 6,50,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31st Mar 2018 | By Depreciation A/c | 22,500 | |||||
| 31stMar.2018 | Balance c/d | 22,500 | |||||
| 22,500 | 22,500 | ||||||
| 31st Apr 2018 | By Balance b/d | 22,500 | |||||
| 31st Mar.2018 | Balance c/d | 55,250 | 31st Mar 2019 | By Depreciation A/c (27,750 + 5,000) | 32,750 | ||
| 55,250 | 55,250 | ||||||
| 31stOct.2019 | To Machine Disposal A/c | 58,575 | 31st Apr 2019 | By Balance b/d | 55,250 | ||
| 1st Oct 2019 | By Depreciation A/c (6 Months) | 8,325 | |||||
| 31stMar.2020 | To Balance b/f | 32,000 |
31st Mar.2020 | By Depreciation A/c (19,500 +7,5000 | 27,000 | ||
| 90,575 | 90,575 | ||||||
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 | 3,00,000 |
| Less: Depreciation | 58,575 |
| Book value of asset as on 1st Oct, 2019 | 2,41,425 |
| Sale Price of Machinery | 1,60,000 |
| Profit on the sale of the asset | 81,425 |
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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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