Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 11 Commerce Accountancy Chapter 10 Depreciation are provided here with simple step-by-step explanations. These solutions for Depreciation are extremely popular among class 11 Commerce students for Accountancy Depreciation Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2016) Book of class 11 Commerce Accountancy Chapter 10 are provided here for you for free. You will also love the ad-free experience on Meritnationâ€™s Double Entry Book Keeping Ts Grewal (2016) Solutions. All Double Entry Book Keeping Ts Grewal (2016) Solutions for class 11 Commerce Accountancy are prepared by experts and are 100% accurate.

#### Answer:

 Machinery Account Dr. Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2013 2014 Apr. 01 Bank A/c 21,000 Mar. 31 Depreciation A/c 2,000 Mar. 31 Balance c/d 19,000 21,000 21,000 2014 2015 Apr. 01 Balance b/d 19,000 Mar. 31 Depreciation A/c 2,000 Mar. 31 Balance c/d 17,000 19,000 19,000 2015 2016 Apr. 01 Balance b/d 17,000 Mar. 31 Depreciation A/c 2,000 Mar. 31 Balance c/d 15,000 17,000 17,000

Working Notes:

1. Calculation of Depreciation

#### Answer:

 Book of Shri Ram Machinery Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2013 2014 April 01 Bank 40,000 Mar. 31 Depreciation 4,000 April 01 Bank (Erection Expense) 5,000 Mar. 31 Balance c/d 41,000 45,000 45,000 2014 2015 April 01 Balance b/d 41,000 Mar. 31 Depreciation 4,000 Mar. 31 Balance c/d 37,000 41,000 41,000 2015 2016 April 01 Balance b/d 37,000 Mar. 31 Depreciation 4,000 Mar. 31 Balance c/d 33,000 37,000 37,000

Calculation of Depreciation

#### Answer:

 Machinery Account Dr. Cr. Date Particulars Amount (Rs) Date Particulars Amount (Rs) 2012 2013 Apr. 01 Bank A/c 3,30,000 Mar. 31 Depreciation A/c 75,000 Mar. 31 Balance c/d 2,55,000 3,30,000 3,30,000 2013 2014 Apr. 01 Balance b/d 2,55,000 Mar. 31 Depreciation A/c 75,000 Mar. 31 Balance c/d 1,80,000 2,55,000 2,55,000 2014 2015 Apr. 01 Balance b/d 1,80,000 Mar. 31 Depreciation A/c 75,000 Mar. 31 Balance c/d 1,05,000 1,80,000 1,80,000 2015 2016 Apr. 01 Balance b/d 1,05,000 Mar. 31 Depreciation A/c 75,000 Mar. 31 Balance c/d 30,000 1,05,000 1,05,000

Working Notes:

1. Calculation of Amount of Depreciation

Cost of Asset = Purchase Price + Freight & Insurance + Carriage Inwards + Installation Charges
= 3,00,000 + 21,000 + 3,000 + 6,000
= Rs 3,30,000

#### Answer:

 Furniture Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2009 2009 Jan. 01 Bank (F1) 55,000 Dec. 31 Depreciation (F1) 5,000 Dec. 31 Balance c/d (F1) 50,000 55,000 55,000 2010 2010 Jan. 01 Balance b/d (F1) 50,000 Dec. 31 Depreciation Jan. 01 Bank (F2) 9,500 F1 5,000 F2 900 5,900 Dec. 31 Balance c/d F1 45,000 F2 8,600 53,600 59,500 59,500 2011 2011 Jan. 01 Balance b/d Dec. 31 Depreciation F1 45,000 F1 5,000 F2 8,600 53,600 F2 900 5,900 Dec. 31 Balance c/d F1 40,000 F2 7,700 47,700 53,600 53,600 2012 2012 Jan.01 Balance b/d Dec. 31 Depreciation F1 40,000 F1 5,000 F2 7,700 47,700 F2 900 July 01 Bank (F3) 8,400 F3 400 6,300 Dec. 31 Balance c/d F1 35,000 F2 6,800 F3 8,000 49,800 56,100 56,100

Working Notes:

#### Answer:

In this question, the word 'p.a.' is not suffixed with the rate of depreciation.

There are two ways of doing such a question.

1) Where the date of purchase is taken into consideration, so in this case, depreciation will be charged for six months. (less commonly followed practice)

2) Where the date of purchase of the asset is ignored and depreciation is charged for complete one year. (Most commonly followed practice)

The first way is given below:

 Machinery Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2010 2010 Jan. 01 Bank (M1) 2,50,000 Dec. 31 Depreciation July 01 Bank (M2) 1,00,000 M1 12,500 M2 (for 6 Months) 2,500 15,000 Dec. 31 Balance c/d M1 2,37,500 M2 97,500 3,35,000 3,50,000 3,50,000 2011 2011 Jan. 01 Balance b/d Dec. 31 Depreciation M1 2,37,500 M1 12,500 M2 97,500 3,35,000 M2 5,000 17,500 Dec. 31 Balance c/d M1 2,25,000 M2 92,500 3,17,500 3,35,000 3,35,000 2012 2012 Jan. 01 Balance b/d July 01 Depreciation (for 6 months) 6,250 M1 2,25,000 July 01 Bank (M1 sold) 1,43,000 M2 92,500 3,17,500 July 01 Profit and Loss (loss on sale) 75,750 July 01 Bank (M3) 2,00,000 Dec. 31 Depreciation M2 5,000 M3(for 6 months) 5,000 10,000 Dec. 31 Balance c/d M2 87,500 M3 1,95,000 2,82,500 5,17,500 5,17,500 2012 2013 Jan. 01 Balance b/d Dec. 31 Depreciation M2 87,500 M2 5,000 M3 1,95,000 2,82,500 M3 10,000 15,000 Dec. 31 Balance c/d M2 82,500 M3 1,85,000 2,67,500 2,82,500 2,82,500

Working Notes:

1. Calculation of Deprecation

2. Calculation of profit or loss on sale of Machine 1

 Particulars Amount (Rs) Book Value on Jan 01, 2008 2,25,000 Less: Deprecation for six month (6,250) Book Value on July 01, 2008 2,18,750 Less: Sale Proceeds (1,43,000) Loss on Sale of Machine 75,750

The second way of answering this question is:

 Machinery Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2010 2010 Jan.01 Bank (M1) 2,50,000 Dec.31 Depreciation July 01 Bank (M2) 1,00,000 M1 12,500 M2 (6 Months) 5,000 17,500 Dec.31 Balance c/d M1 2,37,500 M2 95,000 3,32,500 3,50,000 3,50,000 2011 2011 Jan.01 Balance b/d Dec.31 Depreciation M1 2,37,500 M1 12,500 M2 95,000 3,32,500 M2 5,000 17,500 Dec.31 Balance c/d M1 2,25,000 M2 90,000 3,15,000 3,32,500 3,32,500 2012 2012 Jan.01 Balance b/d July 01 Depreciation (for 6 months) 6,250 M1 2,25,000 July 01 Bank (M1 sold) 1,43,000 M2 90,000 3,15,000 July 01 Profit and Loss (loss on sale) 75,750 July 01 Bank (M3) 2,00,000 Dec.31 Depreciation M2 5,000 M3 10,000 15,000 Dec.31 Balance c/d M2 85,000 M3 1,90,000 2,75,000 5,15,000 5,15,000 2013 2013 Jan.01 Balance b/d Dec.31 Depreciation M2 85,000 M2 5,000 M3 1,90,000 2,75,000 M3 10,000 15,000 Dec.31 Balance c/d M2 80,000 M3 1,80,000 2,60,000 2,75,000 2,75,000

Working Notes:

1. Calculation of Deprecation

2. Calculation of profit or loss on sale of Machine 1

 Particulars Amount (Rs) Book Value on Jan 01, 2008 2,25,000 Less: Deprecation for six month (6,250) Book Value on July 01, 2008 2,18,750 Less: Sale Proceeds (1,43,000) Loss on Sale of Machine 75,750

Note: The answer obtained by following the second way is different from the one given in the textbook. However, it is advisable that students should follow the second method (i.e. charging depreciation for complete one year in case 'p.a.' word is not given with the rate of depreciation).

#### Answer:

 Machinery Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2014 2015 Apr. 01 Bank A/c (M1) (40,000 + 10,000) 50,000 Mar. 31 Depreciation A/c Sept. 30 Bank A/c (M2) 20,000 M1 5,000 M2 (for 6 months) 1,000 6,000 Mar. 31 Balance c/d M1 45,000 M2 (for 6 months) 19,000 64,000 70,000 70,000

Note:

Repair and renewal made on December 31, 2014 will not be recorded in Machinery Account because, this repair was made after putting the Machinery in to use.

#### Answer:

 Maruti Van Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2009 2009 Jan. 01 Bank A/c (I) 65,000 Dec. 31 Depreciation A/c (I) 6,500 Dec. 31 Balance c/d (I) 58,500 65,000 65,000 2010 2010 Jan. 01 Balance b/d (I) 58,500 Dec. 31 Depreciation A/c July 01 Bank A/c (II) 70,000 (I) 6,500 (II) (for 6 month) 3,500 10,000 Dec. 31 Balance c/d (I) 52,000 (II) 66,500 1,18,500 1,28,500 1,28,500 2011 2011 Jan. 01 Balance b/d Jan. 01 Bank A/c (I) 45,000 (I) 52,000 Jan. 01 Profit and Loss A/c (Loss on Sale) 7,000 (II) 66,500 1,18,500 Dec. 31 Depreciation A/c Jan. 01 Bank A/c (III) 1,70,000 (II) 7,000 (III) 17,000 24,000 Dec. 31 Balance c/d (II) 59,500 (III) 1,53,000 2,12,500 2,88,500 2,88,500

Working Notes

1. Calculation of Annual Depreciation

2. Calculation of profit or loss on Sale of Maruti Van (I)

 Particulars Amount (Rs) Book Value on Jan 01, 2002 52,000 Less: sale of Maruti Van (45,000) Loss on sale of Maruti Van 7,000

#### Answer:

 Books of Sohan Lal & Sons Plant Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2010 2010 April 01 Bank A/c (I) 60,000 Dec.31 Depreciation A/c (I) for 9 months 4,500 (II) for 3 months 1,000 5,500 Oct.01 Bank A/c (II) 40,000 Dec.31 Balance c/d (I) 55,500 (II) 39,000 94,500 1,00,000 1,00,000 2011 2011 Jan.01 Balance b/d Dec.31 Depreciation A/c (I) 55,500 (I) 6,000 (II) 39,000 94,500 (II) 4,000 July 01 Bank A/c (III) 20,000 (III) for 6 months 1,000 11,000 Dec.31 Balance c/d (I) 49,500 (II) 35,000 (III) 19,000 1,03,500 1,14,500 1,14,500 2012 2012 Jan.01 Balance b/d Jan.01 Bank A/c 6,000 (I) 49,500 Jan.01 Profit and Loss A/c (loss)(16,500 – 6,000) 10,500 (II) 35,000 Dec.31 Depreciation A/c (III) 19,000 1,03,500 (I) 4,000 (II) 4,000 (III) 2,000 10,000 Dec.31 Balance c/d (I) 29,000 (II) 31,000 (III) 17,000 77,000 1,03,500 1,03,500

Working Notes

1. Calculation of Depreciation

2. Calculation of profit or loss on Sale of Plant I

 Particulars Amount (Rs) 1/3rd of Book Value of Plant I as on Jan.01, 2012( 49,500 × 1/3) 16,500 Less: Sale of Plant (6,000) Loss on Sale of Plant 10,500

#### Answer:

â€‹
 Books of A. Co. Ltd Machinery Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2012 2013 July 01 Bank (I) (20,000 + 3,000) 23,000 Mar.31 Depreciation 2013 I (for 9 months) 1,725 Jan.01 Bank (II) 12,000 II (for 3 months) 300 2,025 Mar.31 Balance c/d I 21,275 II 11,700 32,975 35,000 35,000 2013 2014 April 01 Balance b/d Mar.31 Depreciation I 21,275 I 2,300 II 11,700 32,975 II 1,200 3,500 Mar.31 Balance c/d I 18,975 II 10,500 29,475 32,975 32,975 2014 2014 April 01 Balance b/d June 30 Bank (II) 8,000 I 18,975 June 30 Depreciation (II) (for 3 months) 300 II 10,500 29,475 June 30 Profit and Loss (Loss) 2,200 July 01 Bank (III) 5,000 2015 July 01 Creditors for plant (III) 10,000 Mar.31 Depreciation I 2,300 III (on 15,000 for 8 months) 1,125 3,425 Balance c/d I 16,675 III 13,875 30,550 44,475 44,475

Working Notes

1. Calculation of Depreciation

2.     Calculation of profit on loss on sale of Machine (II)

 Particulars Amount (Rs) Book Value of Machine (II) on April 01, 2007 10,500 Less: Depreciation for 3 Months (300) Book Value on June 30 10,200 Less: Sale (8,000) Loss on Sale 2,200

#### Answer:

 Asset Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2007 2008 April 01 Bank 10,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 9,500 10,500 10,500 2008 2009 April 01 Balance b/d 9,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 8,500 9,500 9,500 2009 2010 April 01 Balance b/d 8,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 7,500 8,500 8,500 2010 2011 April 01 Balance b/d 7,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 6,500 7,500 7,500 2011 2012 April 01 Balance b/d 6,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 5,500 6,500 6,500 2012 2013 April 01 Balance b/d 5,500 Mar.31 Depreciation 1,000 Mar.31 Balance c/d 4,500 5,500 5,500 2013 2014 April 01 Balance b/d 4,500 Mar.31 Depreciation 1,000 Mar.31 Bank 600 Mar.31 Profit and Loss (Loss) 2,900 4,500 4,500

(i) Depreciation Expense for the year ended March 31, 2008 is Rs 1,000

(ii) The Net Book Value of the asset on March 31, 2012 is Rs 5,500

(iii) Loss on Sale of the asset on March 31, 2014 is Rs 2,900

#### Answer:

 Books of X Machinery Account Dr. Cr. Date Particulars J.F. Amount (Rs) Date Particulars J.F. Amount (Rs) 2012 2012 Jan.01 Bank (I) 50,000 Dec.31 Depreciation (I) 5,000 Dec.31 Balance c/d 45,000 50,000 50,000 2013 2013 Jan.01