Question No 38 Chapter No 12
38. On April 01, 2016, Jain & Sons purchased a second-hand plant costing 2,00,000 and spent 10,000 on its overhauling. It also spent 5,000 on transportation and installation of the plant. It was decided to provide for depreciation @ 20% on written down value. The plant was destroyed by fire on Oct. 31, 2019, and an insurance claim of 50,000 was admitted by the insurance company. Prepare plant account assuming that the company closes its books on March 31, every year.
The solution of Question No 38 Chapter No 12: –
| Dr. | Plant A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2016 | To Bank A/c(2,00,000 + 10,000 + 5,000) | 2,15,000 | 31st Mar 2017 | By Deprecation A/c | 43,000 | ||
| 31stMar2017 | By Balance C/d | 1,72,000 | |||||
| 2,15,000 | 2,15,000 | ||||||
| 1st Apr.2017 | To Balance b/f | 1,72,000 | 31st Mar 2018 | By Deprecation A/c | 34,400 | ||
| 31st Mar2018 | By Balance C/d | 1,37,600 | |||||
| 1,72,000 |
1,72,000 | ||||||
| 1st Apr.2018 | To Balance b/f | 1,37,600 | 31st Mar 2019 | By Deprecation A/c | 27,520 | ||
| 31st Mar 2019 |
By Balance C/d |
1,10,080 | |||||
| 1,37,600 |
1,37,600 |
||||||
| 1st Apr.2019 | To Balance b/f | 1,10,080 | 1st Oct 2019 | By Deprecation A/c | 12,843 | ||
| 1st Oct 2019 | By Statement of profit & Loss (loss by fire) | 47,237 | |||||
| 1st Oct 2019 | By Insurance claim A/c | 50,000 | |||||
| 1,10,080 | 1,10,080 | ||||||
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. 2019 | 1,10,080 |
| Less: Depreciation for 7 months | 12,843 |
| Book value of asset as on 1st Oct, 2019 | 97,237 |
| Less: Insurance claim received | 50,000 |
| Loss by fire transferred to Profit & Loss A/c | 47,237 |
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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.
