Chapter 10 from Textbook Double Entry Book Keeping Ts Grewal 2017 for Class 11 ACCOUNTANCY

Question 1:

Answer:

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2014			2015
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
2015			2016
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
2016			2017
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

Question 2:

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2014			2015
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
2015			2016
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
2016			2017
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)
2014				2015
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
2015				2016
April 01	Balance b/d		41,000	Mar. 31	Depreciation		4,000
				Mar. 31	Balance c/d		37,000
			41,000				41,000
2016				2017
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

Question 3:

Book of Shri Ram Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2014				2015
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
2015				2016
April 01	Balance b/d		41,000	Mar. 31	Depreciation		4,000
				Mar. 31	Balance c/d		37,000
			41,000				41,000
2016				2017
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)
2013			2014
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
2014			2015
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
2015			2016
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
2016			2017
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

Question 4:

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2013			2014
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
2014			2015
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
2015			2016
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
2016			2017
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)
2012					2013
Apr.01	Bank (F1)			55,000	Mar. 31	Depreciation (F1)			5,000
					Mar. 31	Balance c/d (F1)			50,000
				55,000					55,000
2013					2014
Apr.01	Balance b/d (F1)			50,000	Mar. 31	Depreciation
Apr.01	Bank (F2)			9,500		F1	5,000
						F2	900		5,900
					Mar. 31	Balance c/d
						F1	45,000
						F2	8,600		53,600
				59,500					59,500
2014					2015
Apr.01	Balance b/d				Mar. 31	Depreciation
	F1	45,000				F1	5,000
	F2	8,600		53,600		F2	900		5,900
					Mar. 31	Balance c/d
						F1	40,000
						F2	7,700		47,700
				53,600					53,600
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	F1	40,000				F1	5,000
	F2	7,700		47,700		F2	900
Oct.01	Bank (F3)			8,400		F3	400		6,300

					Mar. 31	Balance c/d
						F1	35,000
						F2	6,800
						F3	8,000		49,800
				56,100					56,100

Working Notes:

Question 5:

Furniture Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2012					2013
Apr.01	Bank (F1)			55,000	Mar. 31	Depreciation (F1)			5,000
					Mar. 31	Balance c/d (F1)			50,000
				55,000					55,000
2013					2014
Apr.01	Balance b/d (F1)			50,000	Mar. 31	Depreciation
Apr.01	Bank (F2)			9,500		F1	5,000
						F2	900		5,900
					Mar. 31	Balance c/d
						F1	45,000
						F2	8,600		53,600
				59,500					59,500
2014					2015
Apr.01	Balance b/d				Mar. 31	Depreciation
	F1	45,000				F1	5,000
	F2	8,600		53,600		F2	900		5,900
					Mar. 31	Balance c/d
						F1	40,000
						F2	7,700		47,700
				53,600					53,600
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	F1	40,000				F1	5,000
	F2	7,700		47,700		F2	900
Oct.01	Bank (F3)			8,400		F3	400		6,300

					Mar. 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)
2014					2015
Apr.01	Bank (M1)			2,50,000	Mar. 31	Depreciation
Apr.01	Bank (M2)			1,00,000		M1	12,500
						M2 (for 6 Months)	2,500			15,000
					Mar. 31	Balance c/d
						M1	2,37,500
						M2	97,500			3,35,000
				3,50,000						3,50,000
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	M1	2,37,500				M1		12,500
	M2	97,500		3,35,000		M2		5,000		17,500

					Mar. 31	Balance c/d
						M1	2,25,000
						M2	92,500			3,17,500
				3,35,000						3,35,000
2016					2017
Apr.01	Balance b/d				Oct. 01	Depreciation (for 6 months)				6,250
	M1	2,25,000			Oct. 01	Bank (M1 sold)				1,43,000
	M2	92,500		3,17,500	Oct. 01	Profit and Loss (loss on sale)				75,750
Oct. 01	Bank (M3)			2,00,000	Mar. 31	Depreciation
						M2	5,000
						M3(for 6 months)	5,000			10,000
					Mar. 31	Balance c/d
						M2	87,500
						M3	1,95,000			2,82,500
				5,17,500						5,17,500
2017					2018
Apr.01	Balance b/d				Mar. 31	Depreciation
	M2	87,500				M2	5,000
	M3	1,95,000		2,82,500		M3	10,000			15,000
					Mar. 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 Apr 01, 2016	2,25,000
Less: Deprecation for six month	(6,250)
Book Value on Oct 01, 2016	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)
2014					2015
Apr.01	Bank (M1)			2,50,000	Mar. 31	Depreciation
Oct. 01	Bank (M2)			1,00,000		M1	12,500
						M2 (6 Months)	5,000			17,500
					Mar. 31	Balance c/d
						M1	2,37,500
						M2	95,000			3,32,500
				3,50,000						3,50,000
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	M1	2,37,500				M1		12,500
	M2	95,000		3,32,500		M2		5,000		17,500

					Mar. 31	Balance c/d
						M1	2,25,000
						M2	90,000			3,15,000
				3,32,500						3,32,500
2016					2017
Apr.01	Balance b/d				Oct. 01	Depreciation (for 6 months)				6,250
	M1	2,25,000			Oct. 01	Bank (M1 sold)				1,43,000
	M2	90,000		3,15,000	Oct. 01	Profit and Loss (loss on sale)				75,750
Oct. 01	Bank (M3)			2,00,000	Mar. 31	Depreciation
						M2	5,000
						M3	10,000			15,000
					Mar. 31	Balance c/d
						M2	85,000
						M3	1,90,000			2,75,000
				5,15,000						5,15,000
2017					2018
Apr.01	Balance b/d				Mar. 31	Depreciation
	M2	85,000				M2	5,000
	M3	1,90,000		2,75,000		M3	10,000			15,000
					Mar. 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, 2016	2,25,000
Less: Deprecation for six month	(6,250)
Book Value on July 01, 2016	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).

Question 6:

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)
2014					2015
Apr.01	Bank (M1)			2,50,000	Mar. 31	Depreciation
Apr.01	Bank (M2)			1,00,000		M1	12,500
						M2 (for 6 Months)	2,500			15,000
					Mar. 31	Balance c/d
						M1	2,37,500
						M2	97,500			3,35,000
				3,50,000						3,50,000
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	M1	2,37,500				M1		12,500
	M2	97,500		3,35,000		M2		5,000		17,500

					Mar. 31	Balance c/d
						M1	2,25,000
						M2	92,500			3,17,500
				3,35,000						3,35,000
2016					2017
Apr.01	Balance b/d				Oct. 01	Depreciation (for 6 months)				6,250
	M1	2,25,000			Oct. 01	Bank (M1 sold)				1,43,000
	M2	92,500		3,17,500	Oct. 01	Profit and Loss (loss on sale)				75,750
Oct. 01	Bank (M3)			2,00,000	Mar. 31	Depreciation
						M2	5,000
						M3(for 6 months)	5,000			10,000
					Mar. 31	Balance c/d
						M2	87,500
						M3	1,95,000			2,82,500
				5,17,500						5,17,500
2017					2018
Apr.01	Balance b/d				Mar. 31	Depreciation
	M2	87,500				M2	5,000
	M3	1,95,000		2,82,500		M3	10,000			15,000
					Mar. 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 Apr 01, 2016	2,25,000
Less: Deprecation for six month	(6,250)
Book Value on Oct 01, 2016	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)
2014					2015
Apr.01	Bank (M1)			2,50,000	Mar. 31	Depreciation
Oct. 01	Bank (M2)			1,00,000		M1	12,500
						M2 (6 Months)	5,000			17,500
					Mar. 31	Balance c/d
						M1	2,37,500
						M2	95,000			3,32,500
				3,50,000						3,50,000
2015					2016
Apr.01	Balance b/d				Mar. 31	Depreciation
	M1	2,37,500				M1		12,500
	M2	95,000		3,32,500		M2		5,000		17,500

					Mar. 31	Balance c/d
						M1	2,25,000
						M2	90,000			3,15,000
				3,32,500						3,32,500
2016					2017
Apr.01	Balance b/d				Oct. 01	Depreciation (for 6 months)				6,250
	M1	2,25,000			Oct. 01	Bank (M1 sold)				1,43,000
	M2	90,000		3,15,000	Oct. 01	Profit and Loss (loss on sale)				75,750
Oct. 01	Bank (M3)			2,00,000	Mar. 31	Depreciation
						M2	5,000
						M3	10,000			15,000
					Mar. 31	Balance c/d
						M2	85,000
						M3	1,90,000			2,75,000
				5,15,000						5,15,000
2017					2018
Apr.01	Balance b/d				Mar. 31	Depreciation
	M2	85,000				M2	5,000
	M3	1,90,000		2,75,000		M3	10,000			15,000
					Mar. 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, 2016	2,25,000
Less: Deprecation for six month	(6,250)
Book Value on July 01, 2016	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)
2016				2017
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, 2016 will not be recorded in Machinery Account because, this repair was made after putting the Machinery in to use.

Question 7:

Machinery Account
Dr.										Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2016				2017
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, 2016 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)
2015					2006
Apr. 01	Bank A/c (I)			65,000	Mar. 31	Depreciation A/c (I)				6,500
					Mar. 31	Balance c/d (I)				58,500
				65,000						65,000
2016					2017
Apr. 01	Balance b/d (I)			58,500	Mar. 31	Depreciation A/c
July 01	Bank A/c (II)			70,000		(I)	6,500
						(II) (for 6 month)	3,500			10,000
					Mar. 31	Balance c/d
						(I)		52,000
						(II)		66,500		1,18,500
				1,28,500						1,28,500
2017					2017
Apr. 01	Balance b/d				Apr. 01	Bank A/c (I)				45,000
	(I)	52,000			Apr. 01	Profit and Loss A/c (Loss on Sale)				7,000
	(II)	66,500		1,18,500	2018 Mar. 31	Depreciation A/c
Apr. 01	Bank A/c (III)			1,70,000		(II)		7,000
						(III)		17,000		24,000
					Mar. 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, 2017	52,000
Less: sale of Maruti Van	(45,000)
Loss on sale of Maruti Van	7,000

Question 8:

Maruti Van Account
Dr.											Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2015					2006
Apr. 01	Bank A/c (I)			65,000	Mar. 31	Depreciation A/c (I)				6,500
					Mar. 31	Balance c/d (I)				58,500
				65,000						65,000
2016					2017
Apr. 01	Balance b/d (I)			58,500	Mar. 31	Depreciation A/c
July 01	Bank A/c (II)			70,000		(I)	6,500
						(II) (for 6 month)	3,500			10,000
					Mar. 31	Balance c/d
						(I)		52,000
						(II)		66,500		1,18,500
				1,28,500						1,28,500
2017					2017
Apr. 01	Balance b/d				Apr. 01	Bank A/c (I)				45,000
	(I)	52,000			Apr. 01	Profit and Loss A/c (Loss on Sale)				7,000
	(II)	66,500		1,18,500	2018 Mar. 31	Depreciation A/c
Apr. 01	Bank A/c (III)			1,70,000		(II)		7,000
						(III)		17,000		24,000
					Mar. 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, 2017	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)
2015						2016
July 01	Bank A/c (I)				60,000	Mar.31	Depreciation A/c
							(I) for 9 months			4,500
2016							(II) for 3 months			1,000		5,500
Jan.01	Bank A/c (II)				40,000	Mar.31	Balance c/d
							(I)	55,500
							(II)	39,000				94,500
					1,00,000							1,00,000
2016						2017
Apr.01	Balance b/d					Mar.31	Depreciation A/c
	(I)		55,500				(I)		6,000
	(II)		39,000		94,500		(II)		4,000
Oct 01	Bank A/c (III)				20,000		(III) for 6 months		1,000			11,000
						Mar.31	Balance c/d
							(I)		49,500
							(II)		35,000
							(III)		19,000			1,03,500
					1,14,500							1,14,500
2017						2017
Apr.01	Balance b/d					Apr.01	Bank A/c					6,000
	(I)	49,500				Apr.01	Profit and Loss A/c (loss)(16,500 – 6,000)					10,500
	(II) (III)	35,000 19,000				2018 Mar.31	Depreciation A/c
					1,03,500		(I)		4,000
							(II)		4,000
							(III)		2,000			10,000
						Mar.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)
1/3^rd of Book Value of Plant I as on Jan.01, 2017( 49,500 × 1/3)	16,500
Less: Sale of Plant	(6,000)
Loss on Sale of Plant	10,500

Question 9:

Books of Sohan Lal & Sons Plant Account
Dr.													Cr.
Date	Particulars			J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2015						2016
July 01	Bank A/c (I)				60,000	Mar.31	Depreciation A/c
							(I) for 9 months			4,500
2016							(II) for 3 months			1,000		5,500
Jan.01	Bank A/c (II)				40,000	Mar.31	Balance c/d
							(I)	55,500
							(II)	39,000				94,500
					1,00,000							1,00,000
2016						2017
Apr.01	Balance b/d					Mar.31	Depreciation A/c
	(I)		55,500				(I)		6,000
	(II)		39,000		94,500		(II)		4,000
Oct 01	Bank A/c (III)				20,000		(III) for 6 months		1,000			11,000
						Mar.31	Balance c/d
							(I)		49,500
							(II)		35,000
							(III)		19,000			1,03,500
					1,14,500							1,14,500
2017						2017
Apr.01	Balance b/d					Apr.01	Bank A/c					6,000
	(I)	49,500				Apr.01	Profit and Loss A/c (loss)(16,500 – 6,000)					10,500
	(II) (III)	35,000 19,000				2018 Mar.31	Depreciation A/c
					1,03,500		(I)		4,000
							(II)		4,000
							(III)		2,000			10,000
						Mar.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)
1/3^rd of Book Value of Plant I as on Jan.01, 2017( 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

Question 10:

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)
2009				2010
April 01	Bank		10,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		9,500
			10,500				10,500
2010				2011
April 01	Balance b/d		9,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		8,500
			9,500				9,500
2011				2012
April 01	Balance b/d		8,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		7,500
			8,500				8,500
2012				2013
April 01	Balance b/d		7,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		6,500
			7,500				7,500
2013				2014
April 01	Balance b/d		6,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		5,500
			6,500				6,500
2014				2015
April 01	Balance b/d		5,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		4,500
			5,500				5,500
2015				2016
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, 2010 is Rs 1,000

(ii) The Net Book Value of the asset on March 31, 2014 is Rs 5,500

(iii) Loss on Sale of the asset on March 31, 2016 is Rs 2,900

Question 11:

Asset Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2009				2010
April 01	Bank		10,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		9,500
			10,500				10,500
2010				2011
April 01	Balance b/d		9,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		8,500
			9,500				9,500
2011				2012
April 01	Balance b/d		8,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		7,500
			8,500				8,500
2012				2013
April 01	Balance b/d		7,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		6,500
			7,500				7,500
2013				2014
April 01	Balance b/d		6,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		5,500
			6,500				6,500
2014				2015
April 01	Balance b/d		5,500	Mar.31	Depreciation		1,000
				Mar.31	Balance c/d		4,500
			5,500				5,500
2015				2016
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, 2010 is Rs 1,000

(ii) The Net Book Value of the asset on March 31, 2014 is Rs 5,500

(iii) Loss on Sale of the asset on March 31, 2016 is Rs 2,900

Answer:

Books of X Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
Apr.01	Bank (I)			50,000	Mar.31	Depreciation (I)			5,000
					Mar.31	Balance c/d			45,000
				50,000					50,000
2016					2017
Apr.01	Balance b/d (I)			45,000	Mar.31	Depreciation
Oct.01	Bank (II)			10,000		I	5,000
						II	500		5,500
					Mar.31	Balance c/d
						I	40,000
						II	9,500		49,500
				55,000					55,000
2017					2017
					Sept 30	Depreciation (I of Rs 8,000)			400
					Sept30 2018	Bank			6,000
Apr.01	Balance b/d				Mar.31	Depreciation
	I	40,000				I (42,000 $\times$ 10%)	4,200
	II	9,500		49,500		II	1,000
April 01	Bank (III)			6,400		III	480		5,680
					Mar.31	Balance c/d
						I	29,400
						II	8,500
						III	5,920		43,820
				55,900					55,900

Working Notes

1. Calculation of Depreciation

2. Calculation of profit or loss on sale of part of Machine (I)

Book value of part of Machine (I) (Costing Rs 8000):

$On Jan 01, 2017 = 40, 000 \times \frac{8, 000}{50, 000} = 6, 400$

Particulars	Amount (Rs)
Book Value on Jan 01, 2017	6,400
Less: Depreciation for 6 Months (8,000 × 10% × 6/12)	(400)
Book Value on June 31, 2017	6,000
Less: Sale	(6,000)
Profit on Sale	NIL

Question 12:

Books of X Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
Apr.01	Bank (I)			50,000	Mar.31	Depreciation (I)			5,000
					Mar.31	Balance c/d			45,000
				50,000					50,000
2016					2017
Apr.01	Balance b/d (I)			45,000	Mar.31	Depreciation
Oct.01	Bank (II)			10,000		I	5,000
						II	500		5,500
					Mar.31	Balance c/d
						I	40,000
						II	9,500		49,500
				55,000					55,000
2017					2017
					Sept 30	Depreciation (I of Rs 8,000)			400
					Sept30 2018	Bank			6,000
Apr.01	Balance b/d				Mar.31	Depreciation
	I	40,000				I (42,000 $\times$ 10%)	4,200
	II	9,500		49,500		II	1,000
April 01	Bank (III)			6,400		III	480		5,680
					Mar.31	Balance c/d
						I	29,400
						II	8,500
						III	5,920		43,820
				55,900					55,900

Working Notes

1. Calculation of Depreciation

2. Calculation of profit or loss on sale of part of Machine (I)

Book value of part of Machine (I) (Costing Rs 8000):

$On Jan 01, 2017 = 40, 000 \times \frac{8, 000}{50, 000} = 6, 400$

Particulars	Amount (Rs)
Book Value on Jan 01, 2017	6,400
Less: Depreciation for 6 Months (8,000 × 10% × 6/12)	(400)
Book Value on June 31, 2017	6,000
Less: Sale	(6,000)
Profit on Sale	NIL

Answer:

Journal In the Books of Mr. K. Gupta
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2014
Aug 01	Machinery A/c	Dr.		69,000
	To Bank A/c				69,000
	(Purchased Machinery)
2015
Mar. 31	Depreciation A/c	Dr.		16,600
	To Machinery A/c				16,600
	(Depreciation charged on machinery)

Sept 01	Machinery A/c	Dr.		50,000
	To Bank A/c				50,000
	(Purchased Machinery)

Mar. 31	Depreciation A/c	Dr.		20,983
	To Machinery A/c				20,983
	(Depreciation charged on machinery)

Machinery Account
Dr.									Cr.
Date	Particulars		Amount (Rs)	Date	Particulars			Amount (Rs)
2014				2015
Apr. 01	Balance b/d (M1)		96,000	Mar. 31	Depreciation A/c
Aug 01	Bank A/c ( M2) (60,000 + 9,000)		69,000		M1		12,000
					M2 (for 8 months)		4,600	16,600
				Mar. 31	Balance c/d
					M1		84,000
					M2		64,400	1,48,400

			1,65,000					1,65,000
2015				2016
Apr. 01	Balance b/d			Mar. 31	Depreciation A/c
	M1	84,000			M1		12,000
	M2	64,400	1,48,400		M2		6,900
Sept. 01	Bank A/c (M3)		50,000		M3 (for 5 months)		2,083	20,983
				Mar. 31	Balance c/d
					M1	72,000
					M2	57,500
					M3	47,917		1,77,417
			1,98,400					1,98,400

Working Note:

Calculation of Depreciation

Year	Depreciation on M1	Depreciation on M2	Depreciation on M3
2014-15			-
2015-16

Note: Since Machinery started functioning from 1^st November 2015, so depreciation is charged for 5 months only.

Question 13:

Journal In the Books of Mr. K. Gupta
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2014
Aug 01	Machinery A/c	Dr.		69,000
	To Bank A/c				69,000
	(Purchased Machinery)
2015
Mar. 31	Depreciation A/c	Dr.		16,600
	To Machinery A/c				16,600
	(Depreciation charged on machinery)

Sept 01	Machinery A/c	Dr.		50,000
	To Bank A/c				50,000
	(Purchased Machinery)

Mar. 31	Depreciation A/c	Dr.		20,983
	To Machinery A/c				20,983
	(Depreciation charged on machinery)

Machinery Account
Dr.									Cr.
Date	Particulars		Amount (Rs)	Date	Particulars			Amount (Rs)
2014				2015
Apr. 01	Balance b/d (M1)		96,000	Mar. 31	Depreciation A/c
Aug 01	Bank A/c ( M2) (60,000 + 9,000)		69,000		M1		12,000
					M2 (for 8 months)		4,600	16,600
				Mar. 31	Balance c/d
					M1		84,000
					M2		64,400	1,48,400

			1,65,000					1,65,000
2015				2016
Apr. 01	Balance b/d			Mar. 31	Depreciation A/c
	M1	84,000			M1		12,000
	M2	64,400	1,48,400		M2		6,900
Sept. 01	Bank A/c (M3)		50,000		M3 (for 5 months)		2,083	20,983
				Mar. 31	Balance c/d
					M1	72,000
					M2	57,500
					M3	47,917		1,77,417
			1,98,400					1,98,400

Working Note:

Calculation of Depreciation

Year	Depreciation on M1	Depreciation on M2	Depreciation on M3
2014-15			-
2015-16

Note: Since Machinery started functioning from 1^st November 2015, so depreciation is charged for 5 months only.

Answer:

Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
April 01	Bank (I)			1,60,000	Mar.31	Depreciation
Oct.01	Bank (II)			80,000		I	16,000
						II	4,000		20,000
					Mar.31	Balance c/d
						I	1,44,000
						II	76,000		2,20,000
				2,40,000					2,40,000
2016					2017
April 01	Balance b/d				Mar.31	Depreciation
	I	1,44,000				I	16,000
	II	76,000		2,20,000		II	8,000		24,000
					Mar.31	Balance c/d
						I	1,28,000
						II	68,000		1,96,000
				2,20,000					2,20,000
2017					2017
April 01	Balance b/d				Oct.01	Depreciation (I) (6 Months)			8,000
	I	1,28,000			Oct.01	Bank			1,04,000
	II	68,000		1,96,000	Oct.01	Profit and Loss (Loss)			16,000
Oct.01	Bank (III)			2,00,000	201
					Mar.31	Depreciation
						II	8,000
						III (for 6 months)	10,000		18,000
					Mar.31	Balance c/d
						II	60,000
						III	1,90,000		2,50,000
				3,96,000					3,96,000

Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
Mar. 31	Machinery A/c		20,000	Mar. 31	Profit and Loss A/c		20,000
			20,000				20,000
2017				2017
Mar. 31	Machinery A/c		24,000	Mar. 31	Profit and Loss A/c		24,000
			24,000				24,000
2017				2018
Oct.01	Machinery A/c		8,000
2018
Mar.31	Machinery A/c		18,000	Mar.31	Profit and Loss A/c		26,000
			26,000				26,000

Working Notes

1. Calculation of Depreciation

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

Particulars	Amount (Rs)
Book Value on April 01, 2017	1,28,000
Less: Depreciation for 6 Months	(8,000)
Book Value on Oct 01, 2017	1,20,000
Less: Sale Value	(1,04,000)
Loss on Sale	16,000

Question 14:

Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
April 01	Bank (I)			1,60,000	Mar.31	Depreciation
Oct.01	Bank (II)			80,000		I	16,000
						II	4,000		20,000
					Mar.31	Balance c/d
						I	1,44,000
						II	76,000		2,20,000
				2,40,000					2,40,000
2016					2017
April 01	Balance b/d				Mar.31	Depreciation
	I	1,44,000				I	16,000
	II	76,000		2,20,000		II	8,000		24,000
					Mar.31	Balance c/d
						I	1,28,000
						II	68,000		1,96,000
				2,20,000					2,20,000
2017					2017
April 01	Balance b/d				Oct.01	Depreciation (I) (6 Months)			8,000
	I	1,28,000			Oct.01	Bank			1,04,000
	II	68,000		1,96,000	Oct.01	Profit and Loss (Loss)			16,000
Oct.01	Bank (III)			2,00,000	201
					Mar.31	Depreciation
						II	8,000
						III (for 6 months)	10,000		18,000
					Mar.31	Balance c/d
						II	60,000
						III	1,90,000		2,50,000
				3,96,000					3,96,000

Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
Mar. 31	Machinery A/c		20,000	Mar. 31	Profit and Loss A/c		20,000
			20,000				20,000
2017				2017
Mar. 31	Machinery A/c		24,000	Mar. 31	Profit and Loss A/c		24,000
			24,000				24,000
2017				2018
Oct.01	Machinery A/c		8,000
2018
Mar.31	Machinery A/c		18,000	Mar.31	Profit and Loss A/c		26,000
			26,000				26,000

Working Notes

1. Calculation of Depreciation

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

Particulars	Amount (Rs)
Book Value on April 01, 2017	1,28,000
Less: Depreciation for 6 Months	(8,000)
Book Value on Oct 01, 2017	1,20,000
Less: Sale Value	(1,04,000)
Loss on Sale	16,000

Answer:

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2013			2014
Apr. 01	Bank A/c (50,000 + 5,000)	55,000	Mar. 31	Depreciation A/c	10,000
			Mar. 31	Balance c/d	45,000
		55,000			55,000
2014			2015
Apr. 01	Balance b/d	45,000	Mar. 31	Depreciation A/c	10,000
			Mar. 31	Balance c/d	35,000
		45,000			45,000
2015			2015
Apr. 01	Balance b/d	35,000	Apr. 01	Bank A/c (Sale proceeds)	32,000
Apr. 01	Bank A/c (25,000 + 1,000)	26,000	Apr. 01	Profit & Loss A/c (Loss on sale)	3,000
			2016 Mar. 31	Depreciation A/c	2,200
			Mar. 31	Balance c/d	23,800

		61,000			61,000

Working Notes:

WN1 Calculation of Depreciation

WN2 Calculation of Loss on Sale of M1

Particulars	Amount (Rs)
Value of Machinery as on Apr. 01, 2015	35,000
Less: Sale Value	32,000
Loss on Sale	3,000

Question 15:

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2013			2014
Apr. 01	Bank A/c (50,000 + 5,000)	55,000	Mar. 31	Depreciation A/c	10,000
			Mar. 31	Balance c/d	45,000
		55,000			55,000
2014			2015
Apr. 01	Balance b/d	45,000	Mar. 31	Depreciation A/c	10,000
			Mar. 31	Balance c/d	35,000
		45,000			45,000
2015			2015
Apr. 01	Balance b/d	35,000	Apr. 01	Bank A/c (Sale proceeds)	32,000
Apr. 01	Bank A/c (25,000 + 1,000)	26,000	Apr. 01	Profit & Loss A/c (Loss on sale)	3,000
			2016 Mar. 31	Depreciation A/c	2,200
			Mar. 31	Balance c/d	23,800

		61,000			61,000

Working Notes:

WN1 Calculation of Depreciation

WN2 Calculation of Loss on Sale of M1

Particulars	Amount (Rs)
Value of Machinery as on Apr. 01, 2015	35,000
Less: Sale Value	32,000
Loss on Sale	3,000

Answer:

$\begin{array}{l} Amount of Depreciation = \frac{Cost of Machine - Scrap Value of Machine}{Life in Years} \\ = \frac{60, 000 (Note) - 6, 000}{10} = Rs 5,400 \\ Rate of Depreciation = \frac{Amount of Depreciation}{Cost of Machine} \times 100 \\ = \frac{5, 400}{60, 000} \times 100 = 9 % p.a. \end{array}$

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2016
Apr. 01	Bank A/c	60,000	Mar. 31		Depreciation A/c	5,400
			Mar. 31		Balance c/d	54,600
		60,000				60,000
2016			2017
Apr. 01	Balance b/d	54,600	Mar. 31		Depreciation A/c	5,400
			Mar. 31		Balance c/d	49,200

		54,600				54,600
2017			2017
Apr. 01	Balance b/d	49,200	Oct. 01		Depreciation A/c (for 6 months)	2,700
					Bank A/c (Sale)	30,000
					Profit and Loss A/c (Loss on Sale)	16,500

		49,200				49,200

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2017	49,200
Less: Depreciation for 6 months	2,700
Value of M1 as on Oct. 01, 2017	46,500
Less: Sale Value	30,000
Loss on Sale	16,500

Note:

1. All the expenses incurred up to the date at which machine is put in use will be added to cost of machine.
2. The amount spent on repairs is a recurring nature expenses. So, it will not be added to Machine A/c.
3. Cost of Machine = 52,000 + 2,000 + 3,000 + 2,000 + 1,000 = Rs 60,000

Question 16:

$\begin{array}{l} Amount of Depreciation = \frac{Cost of Machine - Scrap Value of Machine}{Life in Years} \\ = \frac{60, 000 (Note) - 6, 000}{10} = Rs 5,400 \\ Rate of Depreciation = \frac{Amount of Depreciation}{Cost of Machine} \times 100 \\ = \frac{5, 400}{60, 000} \times 100 = 9 % p.a. \end{array}$

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2016
Apr. 01	Bank A/c	60,000	Mar. 31		Depreciation A/c	5,400
			Mar. 31		Balance c/d	54,600
		60,000				60,000
2016			2017
Apr. 01	Balance b/d	54,600	Mar. 31		Depreciation A/c	5,400
			Mar. 31		Balance c/d	49,200

		54,600				54,600
2017			2017
Apr. 01	Balance b/d	49,200	Oct. 01		Depreciation A/c (for 6 months)	2,700
					Bank A/c (Sale)	30,000
					Profit and Loss A/c (Loss on Sale)	16,500

		49,200				49,200

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2017	49,200
Less: Depreciation for 6 months	2,700
Value of M1 as on Oct. 01, 2017	46,500
Less: Sale Value	30,000
Loss on Sale	16,500

Note:

1. All the expenses incurred up to the date at which machine is put in use will be added to cost of machine.
2. The amount spent on repairs is a recurring nature expenses. So, it will not be added to Machine A/c.
3. Cost of Machine = 52,000 + 2,000 + 3,000 + 2,000 + 1,000 = Rs 60,000

Answer:

Books of Rama Bros. Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Apr. 01	Balance b/d (64,000 + 16,000)		80,000	Apr. 01	Provision for Depreciation		6,400
				Apr. 01	Bank		8,700
				Apr. 01	Profit and Loss		900
				2016
				Mar. 31	Balance c/d		64,000
			80,000				80,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Apr. 01	Machinery Account (Accumulated Dep. on Machine Sold)		6,400	Apr. 01	Balance b/d		36,000
Mar. 31	Balance c/d		36,000	Mar. 31	Depreciation (on 64,000 @10%)		6,400
			42,400				42,400

Working Notes

(1) Calculation of Book Value of Machine Sold on April 01, 2014

Particulars	Amount (Rs)
Machine purchased in April 2011	16,000
Less: Accumulate Deprecation for 4 years till March 31, 2015 (1,600 × 4)	(6,400)
Book value on April 01, 2015	9,600

(2)Calculation of profit or loss on Sale of Machine

Particulars	Amount (Rs)
Book Value on April 01, 2015	9,600
Less: Sale Value	(8,700)
Loss on Sale of Machine	900

Question 17:

Books of Rama Bros. Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Apr. 01	Balance b/d (64,000 + 16,000)		80,000	Apr. 01	Provision for Depreciation		6,400
				Apr. 01	Bank		8,700
				Apr. 01	Profit and Loss		900
				2016
				Mar. 31	Balance c/d		64,000
			80,000				80,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Apr. 01	Machinery Account (Accumulated Dep. on Machine Sold)		6,400	Apr. 01	Balance b/d		36,000
Mar. 31	Balance c/d		36,000	Mar. 31	Depreciation (on 64,000 @10%)		6,400
			42,400				42,400

Working Notes

(1) Calculation of Book Value of Machine Sold on April 01, 2014

Particulars	Amount (Rs)
Machine purchased in April 2011	16,000
Less: Accumulate Deprecation for 4 years till March 31, 2015 (1,600 × 4)	(6,400)
Book value on April 01, 2015	9,600

(2)Calculation of profit or loss on Sale of Machine

Particulars	Amount (Rs)
Book Value on April 01, 2015	9,600
Less: Sale Value	(8,700)
Loss on Sale of Machine	900

Answer:

Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Balance b/d (4,00,000 + 1,00,000)		5,00,000	Oct.01	Provision for Depreciation		32,500
Oct.01	Bank		2,00,000	Oct.01	Bank		42,000
				Oct.01	Profit and Loss *(WN1)*		25,500
				2017
				Mar.31	Balance c/d		6,00,000
			7,00,000				7,00,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
Oct.01	Machinery		32,500	April 01	Balance b/d		2,25,000
2017				2017
Mar.31	Balance c/d		2,47,500	Mar.31	Depreciation *(WN2)*		55,000
			2,80,000				2,80,000

Working Notes:

1. Calculation of Loss on Sale of Machinery

Particulars	Amount (Rs)
Original cost of Machine Sold	1,00,000
Less: Accumulated Depreciation on Machine Sold, from July 2013 to Oct 01, 2016 (1,00,000 × 10% × 3.25 years)	(32,500)
Book Value of Machine Sold	67,500
Less: Sale Value	(42,000)
Loss on Sale of Machine	25,500

2. Calculation of Depreciation Charged during the year

Particulars	Amount (Rs)
On 4,00,000 @ 10% (4,00,000 × 10%)	40,000
On 2,00,000 @ 10% for 6 months (2,00,000 × 10% × 6/12)	10,000
On 1,00,000 @ 10% for 6 months (1,00,000 × 10% × 6/12)	5,000
Total	55,000

Question 18:

Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Balance b/d (4,00,000 + 1,00,000)		5,00,000	Oct.01	Provision for Depreciation		32,500
Oct.01	Bank		2,00,000	Oct.01	Bank		42,000
				Oct.01	Profit and Loss *(WN1)*		25,500
				2017
				Mar.31	Balance c/d		6,00,000
			7,00,000				7,00,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
Oct.01	Machinery		32,500	April 01	Balance b/d		2,25,000
2017				2017
Mar.31	Balance c/d		2,47,500	Mar.31	Depreciation *(WN2)*		55,000
			2,80,000				2,80,000

Working Notes:

1. Calculation of Loss on Sale of Machinery

Particulars	Amount (Rs)
Original cost of Machine Sold	1,00,000
Less: Accumulated Depreciation on Machine Sold, from July 2013 to Oct 01, 2016 (1,00,000 × 10% × 3.25 years)	(32,500)
Book Value of Machine Sold	67,500
Less: Sale Value	(42,000)
Loss on Sale of Machine	25,500

2. Calculation of Depreciation Charged during the year

Particulars	Amount (Rs)
On 4,00,000 @ 10% (4,00,000 × 10%)	40,000
On 2,00,000 @ 10% for 6 months (2,00,000 × 10% × 6/12)	10,000
On 1,00,000 @ 10% for 6 months (1,00,000 × 10% × 6/12)	5,000
Total	55,000

Answer:

Books of Priyank Brothers Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Balance b/d		20,00,000	April 01	Provision for Depreciation		2,25,000
				April 01	Bank		5,00,000
				April 01	Profit and Loss (Loss)		25,000
				2017
				Mar.31	Balance c/d		12,50,000
			20,00,000				20,00,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Machinery		2,25,000	April 01	Balance b/d		8,00,000
2017				2017
Mar.31	Balance c/d		7,00,000	Mar.31	Depreciation (for the year)		1,25,000

			9,25,000				9,25,000

Working Notes

1 Calculation of Loss on Sale of Machinery

Particulars	Amount (Rs)
Original cost of Machine Sold	7,50,000
Less: Accumulated Depreciation on Machine Sold, for 3 years, (7,50,000 × 10% × 3 years)	(2,25,000)
Book Value of Machine Sold	5,25,000
Less: Sale Value	(5,00,000)
Loss on Sale of Machine	25,000

Question 19:

Books of Priyank Brothers Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Balance b/d		20,00,000	April 01	Provision for Depreciation		2,25,000
				April 01	Bank		5,00,000
				April 01	Profit and Loss (Loss)		25,000
				2017
				Mar.31	Balance c/d		12,50,000
			20,00,000				20,00,000

Provision for Depreciation Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2016				2016
April 01	Machinery		2,25,000	April 01	Balance b/d		8,00,000
2017				2017
Mar.31	Balance c/d		7,00,000	Mar.31	Depreciation (for the year)		1,25,000

			9,25,000				9,25,000

Working Notes

1 Calculation of Loss on Sale of Machinery

Particulars	Amount (Rs)
Original cost of Machine Sold	7,50,000
Less: Accumulated Depreciation on Machine Sold, for 3 years, (7,50,000 × 10% × 3 years)	(2,25,000)
Book Value of Machine Sold	5,25,000
Less: Sale Value	(5,00,000)
Loss on Sale of Machine	25,000

Answer:

Case 1: When Fixed Instalment Method is followed

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2014			2015
Oct. 01	Bank A/c ( 25,000 + 1,000)	26,000	Mar. 31		Depreciation A/c (for 6 months)	1,300
			Mar. 31		Balance c/d	24,700
		26,000				26,000
2015			2016
Apr. 01	Balance b/d	24,700	Mar. 31		Depreciation A/c	2,600
			Mar. 31		Balance c/d	22,100
		24,700				24,700
2016			2017
Apr. 01	Balance b/d	22,100	Mar. 31		Depreciation A/c	2,600
			Mar. 31		Balance c/d	19,500

		22,100				22,100

Case 2: When Reducing Instalment Method is followed

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2014			2015
Oct. 01	Bank A/c (25,000 + 1,000)	26,000	Mar. 31	Depreciation A/c	1,300
			Mar. 31	Balance c/d	24,700
		26,000			26,000
2015			2016
Apr. 01	Balance b/d	24,700	Mar. 31	Depreciation A/c	2,470
			Mar. 31	Balance c/d	22,230
		24,700			24,700
2016			2017
Apr. 01	Balance b/d	22,230	Mar. 31	Depreciation A/c	2,223
			Mar. 31	Balance c/d	20,007

		22,230			22,230

Working Note:

WN1 Calculation of Depreciation

Years	2014-154	2015-16	2016-17
Depreciation

Question 20:

Case 1: When Fixed Instalment Method is followed

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2014			2015
Oct. 01	Bank A/c ( 25,000 + 1,000)	26,000	Mar. 31		Depreciation A/c (for 6 months)	1,300
			Mar. 31		Balance c/d	24,700
		26,000				26,000
2015			2016
Apr. 01	Balance b/d	24,700	Mar. 31		Depreciation A/c	2,600
			Mar. 31		Balance c/d	22,100
		24,700				24,700
2016			2017
Apr. 01	Balance b/d	22,100	Mar. 31		Depreciation A/c	2,600
			Mar. 31		Balance c/d	19,500

		22,100				22,100

Case 2: When Reducing Instalment Method is followed

Machinery Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
2014			2015
Oct. 01	Bank A/c (25,000 + 1,000)	26,000	Mar. 31	Depreciation A/c	1,300
			Mar. 31	Balance c/d	24,700
		26,000			26,000
2015			2016
Apr. 01	Balance b/d	24,700	Mar. 31	Depreciation A/c	2,470
			Mar. 31	Balance c/d	22,230
		24,700			24,700
2016			2017
Apr. 01	Balance b/d	22,230	Mar. 31	Depreciation A/c	2,223
			Mar. 31	Balance c/d	20,007

		22,230			22,230

Working Note:

WN1 Calculation of Depreciation

Years	2014-154	2015-16	2016-17
Depreciation

Answer:

Furniture Account (Original Cost Method)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank		4,000	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,800
			4,000				4,000
II year				II year
Jan.01	Balance b/d		3,800	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,600
			3,800				3,800
III year				III year
Jan.01	Balance b/d		3,600	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,400
			3,600				3,600
IV year				IV year
Jan.01	Balance b/d		3,400	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,200
			3,400				3,400

Note:

Furniture Account (Diminishing Balance Method)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank		4,000	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,800
			4,000				4,000
II year				II year
Jan.01	Balance b/d		3,800	Dec.31	Depreciation		190
				Dec.31	Balance c/d		3,610
			3,800				3,800
III year				III year
Jan.01	Balance b/d		3,610	Dec.31	Depreciation		181
				Dec.31	Balance c/d		3,429
			3,610				3,610
IV year				IV year
Jan.01	Balance b/d		3,429	Dec.31	Depreciation		171
				Dec.31	Balance c/d		3,258
			3,429				3,429

Note: Depreciation p.a. =

Question 21:

Furniture Account (Original Cost Method)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank		4,000	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,800
			4,000				4,000
II year				II year
Jan.01	Balance b/d		3,800	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,600
			3,800				3,800
III year				III year
Jan.01	Balance b/d		3,600	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,400
			3,600				3,600
IV year				IV year
Jan.01	Balance b/d		3,400	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,200
			3,400				3,400

Note:

Furniture Account (Diminishing Balance Method)
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank		4,000	Dec.31	Depreciation		200
				Dec.31	Balance c/d		3,800
			4,000				4,000
II year				II year
Jan.01	Balance b/d		3,800	Dec.31	Depreciation		190
				Dec.31	Balance c/d		3,610
			3,800				3,800
III year				III year
Jan.01	Balance b/d		3,610	Dec.31	Depreciation		181
				Dec.31	Balance c/d		3,429
			3,610				3,610
IV year				IV year
Jan.01	Balance b/d		3,429	Dec.31	Depreciation		171
				Dec.31	Balance c/d		3,258
			3,429				3,429

Note: Depreciation p.a. =

Answer:

Boiler Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
Beginning of Year			End of Year
1	Bank A/c	20,000	1	Depreciation A/c	2,000
				Balance c/d	18,000
		20,000			20,000

2	Balance b/d	18,000	2	Depreciation A/c	1,800
				Balance c/d	16,200
		18,000			18,000

3	Balance b/d	16,200	3	Depreciation A/c	1,620
				Balance c/d	14,580
		16,200			16,200

Working Notes:

WN1 Calculation of Amount of Boiler

Cost Price of Boiler = Purchase Price + Shipping Charges + Import Duty + Installation Charges
= 10,000 + 2,000 + 7,000 + 1,000
= Rs 20,000

WN2 Calculation of Depreciation

Years	Depreciation on M1
1
2
3

Question 22:

Boiler Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)
Beginning of Year			End of Year
1	Bank A/c	20,000	1	Depreciation A/c	2,000
				Balance c/d	18,000
		20,000			20,000

2	Balance b/d	18,000	2	Depreciation A/c	1,800
				Balance c/d	16,200
		18,000			18,000

3	Balance b/d	16,200	3	Depreciation A/c	1,620
				Balance c/d	14,580
		16,200			16,200

Working Notes:

WN1 Calculation of Amount of Boiler

Cost Price of Boiler = Purchase Price + Shipping Charges + Import Duty + Installation Charges
= 10,000 + 2,000 + 7,000 + 1,000
= Rs 20,000

WN2 Calculation of Depreciation

Years	Depreciation on M1
1
2
3

Answer:

Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

I year

Jan.01

Bank (I)

90,000

Dec.31

Depreciation

Jan.01

Bank (II)

10,000

I

9,000

II

1,000

10,000

Dec.31

Balance c/d

I

81,000

II

9,000

90,000

1,00,000

II year

Jan.01

Balance b/d

Dec.31

Depreciation

I

81,000

I

8,100

II

9,000

90,000

II

900

9,000

Dec.31

Balance c/d

I

72,900

II

8,100

81,000

90,000

III year

Jan.01

Balance b/d

Dec.31

Depreciation

I

72,900

I

7,290

II

8,100

81,000

II

810

8,100

Dec.31

Balance c/d

I

65,610

II

7,290

72,900

81,000

IV year

Jan.01

Balance b/d

Dec.31

Depreciation

I

65,610

I

6,561

II

7,290

72,900

II

729

7,290

Dec.31

Balance c/d

I

59,049

II

6,561

65,610

72,900

V year

Jan.01

Balance b/d

Jan.01

Bank A/c (II)

2,000

I

59,049

Profit and Loss (Loss)

4,561

II

6,561

Dec.31

Depreciation(I)

5,905

Balance c/d (I)

53,144

65,610

Working Note:

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of boiler on the beginning of 5^th year	6,561
Less: Sale	(2,000)
Loss on Sale of boiler	4,561

Note: The answer for balance of machinery as given in the textbook is not correct. The correct answer is 'Rs 53,144'.

Question 23:

Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

I year

Jan.01

Bank (I)

90,000

Dec.31

Depreciation

Jan.01

Bank (II)

10,000

I

9,000

II

1,000

10,000

Dec.31

Balance c/d

I

81,000

II

9,000

90,000

1,00,000

II year

Jan.01

Balance b/d

Dec.31

Depreciation

I

81,000

I

8,100

II

9,000

90,000

II

900

9,000

Dec.31

Balance c/d

I

72,900

II

8,100

81,000

90,000

III year

Jan.01

Balance b/d

Dec.31

Depreciation

I

72,900

I

7,290

II

8,100

81,000

II

810

8,100

Dec.31

Balance c/d

I

65,610

II

7,290

72,900

81,000

IV year

Jan.01

Balance b/d

Dec.31

Depreciation

I

65,610

I

6,561

II

7,290

72,900

II

729

7,290

Dec.31

Balance c/d

I

59,049

II

6,561

65,610

72,900

V year

Jan.01

Balance b/d

Jan.01

Bank A/c (II)

2,000

I

59,049

Profit and Loss (Loss)

4,561

II

6,561

Dec.31

Depreciation(I)

5,905

Balance c/d (I)

53,144

65,610

Working Note:

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of boiler on the beginning of 5^th year	6,561
Less: Sale	(2,000)
Loss on Sale of boiler	4,561

Note: The answer for balance of machinery as given in the textbook is not correct. The correct answer is 'Rs 53,144'.

Answer:

Books of Babu Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
Apr. 01	Bank (I)			6,000	Mar. 31	Depreciation
Oct. 01	Bank (II)			5,000		I	600
						II (for 6 months)	250		850
					Mar. 31	Balance c/d
						I	5,400
						II	4,750		10,150
				11,000					11,000
2016					2016
Apr. 01	Balance b/d				Oct. 01	Depreciation (I) (for 6 months)			270
	I	5,400			Oct. 01	Bank (I)			4,000
	II	4,750		10,150	Oct. 01	Profit and Loss (Loss)			1,130
					2017
					Mar. 31	Depreciation (II)			475
					Mar. 31	Balance c/d (II)			4,275
				10,150					10,150

Working Note

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of Machinery Apr. 01, 2016	5,400
Less: Depreciation (for 6 Months)	(270)
Book Value of Machinery on Oct. 01, 2016	5,130
Less: Sale	(4,000)
Loss on Sale	1,130

Question 24:

Books of Babu Machinery Account
Dr.										Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars		J.F.	Amount (Rs)
2015					2016
Apr. 01	Bank (I)			6,000	Mar. 31	Depreciation
Oct. 01	Bank (II)			5,000		I	600
						II (for 6 months)	250		850
					Mar. 31	Balance c/d
						I	5,400
						II	4,750		10,150
				11,000					11,000
2016					2016
Apr. 01	Balance b/d				Oct. 01	Depreciation (I) (for 6 months)			270
	I	5,400			Oct. 01	Bank (I)			4,000
	II	4,750		10,150	Oct. 01	Profit and Loss (Loss)			1,130
					2017
					Mar. 31	Depreciation (II)			475
					Mar. 31	Balance c/d (II)			4,275
				10,150					10,150

Working Note

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of Machinery Apr. 01, 2016	5,400
Less: Depreciation (for 6 Months)	(270)
Book Value of Machinery on Oct. 01, 2016	5,130
Less: Sale	(4,000)
Loss on Sale	1,130

Answer:

Machinery Account
Dr.							Cr.
Date	Particulars				Amount (Rs)	Date		Particulars		Amount (Rs)
2013						2014
Apr. 01	Bank A/c					Mar.31		Depreciation A/c
	M1		10,000					M1	1,000
	M2		40,000		50,000			M2	4,000	5,000
						Mar.31		Balance c/d
								M1	9,000
								M2	36,000	45,000
					50,000					50,000
2014						2015
Apr. 01	Balance b/d					Mar.31		Depreciation A/c
	M1			9,000				M1	900
	M2			36,000	45,000			M2	3,600
Oct.01	Bank A/c (M3)				10,000			M3 (Oct. to March)	500	5,000
						Mar.31		Balance c/d
								M1	8,100
								M2	32,400
								M3	9,500	50,000
					55,000					55,000
2015						2016
Apr. 01	Balance b/d					Mar.31		Depreciation A/c
	M1			8,100				M1	810
	M2			32,400				M2	3,240
	M3			9,500	50,000			M3	950	5,000
						Mar.31		Balance c/d
								M1	7,290
								M2	29,160
								M3	8,550	45,000
					50,000					50,000
2016						2016
Apr. 01	Balance b/d					Jul. 31		Depreciation A/c (on M1 for 4 months)		243
	M1	7,290						Bank A/c (Sale of M1)		5,000
	M2	29,160						Profit and Loss A/c (Loss on Sale)		2,047
	M3	8,550			45,000	2017
						Mar.31		Depreciation on-
								M2	2,916
								M3	855	3,771
						Mar. 31		Balance c/d
								M2	26,244
								M3	7,695	33,939
					45,000					45,000

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of M1 as on Apr. 01, 2016	7,290
Less: Depreciation for 4 months	243
Value of M1 as on Jul. 31, 2016	7,047
Less: Sale Value	5,000
Loss on Sale	2,047

Question 25:

Machinery Account
Dr.							Cr.
Date	Particulars				Amount (Rs)	Date		Particulars		Amount (Rs)
2013						2014
Apr. 01	Bank A/c					Mar.31		Depreciation A/c
	M1		10,000					M1	1,000
	M2		40,000		50,000			M2	4,000	5,000
						Mar.31		Balance c/d
								M1	9,000
								M2	36,000	45,000
					50,000					50,000
2014						2015
Apr. 01	Balance b/d					Mar.31		Depreciation A/c
	M1			9,000				M1	900
	M2			36,000	45,000			M2	3,600
Oct.01	Bank A/c (M3)				10,000			M3 (Oct. to March)	500	5,000
						Mar.31		Balance c/d
								M1	8,100
								M2	32,400
								M3	9,500	50,000
					55,000					55,000
2015						2016
Apr. 01	Balance b/d					Mar.31		Depreciation A/c
	M1			8,100				M1	810
	M2			32,400				M2	3,240
	M3			9,500	50,000			M3	950	5,000
						Mar.31		Balance c/d
								M1	7,290
								M2	29,160
								M3	8,550	45,000
					50,000					50,000
2016						2016
Apr. 01	Balance b/d					Jul. 31		Depreciation A/c (on M1 for 4 months)		243
	M1	7,290						Bank A/c (Sale of M1)		5,000
	M2	29,160						Profit and Loss A/c (Loss on Sale)		2,047
	M3	8,550			45,000	2017
						Mar.31		Depreciation on-
								M2	2,916
								M3	855	3,771
						Mar. 31		Balance c/d
								M2	26,244
								M3	7,695	33,939
					45,000					45,000

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of M1 as on Apr. 01, 2016	7,290
Less: Depreciation for 4 months	243
Value of M1 as on Jul. 31, 2016	7,047
Less: Sale Value	5,000
Loss on Sale	2,047

Answer:

Books of X Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank (25,000 + 5,000 + 1,000 + 3,500 + 500)		35,000	Dec.31	Depreciation		3,500
				Dec.31	Balance c/d		31,500
			35,000				35,000
II year				II year
Jan.01	Balance b/d		31,500	Dec.31	Depreciation		3,150
				Dec.31	Balance c/d		28,350
			31,500				31,500
III year				III year
Jan.01	Balance b/d		28,350	Dec.31	Depreciation		2,835
				Dec.31	Balance c/d		25,515
			28,350				28,350
IV year				IV year
Jan.01	Balance b/d		25,515	Jan.01	Bank (30,500 – 500 brokerage)		30,000
Dec.31	Profit and Loss (Profit)		4,485
			30,000				30,000

Question 26:

Books of X Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
I year				I year
Jan.01	Bank (25,000 + 5,000 + 1,000 + 3,500 + 500)		35,000	Dec.31	Depreciation		3,500
				Dec.31	Balance c/d		31,500
			35,000				35,000
II year				II year
Jan.01	Balance b/d		31,500	Dec.31	Depreciation		3,150
				Dec.31	Balance c/d		28,350
			31,500				31,500
III year				III year
Jan.01	Balance b/d		28,350	Dec.31	Depreciation		2,835
				Dec.31	Balance c/d		25,515
			28,350				28,350
IV year				IV year
Jan.01	Balance b/d		25,515	Jan.01	Bank (30,500 – 500 brokerage)		30,000
Dec.31	Profit and Loss (Profit)		4,485
			30,000				30,000

Answer:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars			Amount (Rs)
2014				2015
Apr. 01	Bank A/c (M1)		40,000	Mar. 31		Depreciation A/c
Oct. 01	Bank A/c (M2)		20,000			M1	4,000
2015						M2	1,000
Jan. 01	Bank A/c (M3)		10,000			M3	250		5,250
				Mar. 31		Balance c/d
						M1	36,000
						M2	19,000
						M3	9,750		64,750

			70,000						70,000
2015				2015
Apr. 01	Balance b/d			June 30		Depreciation (M2) (for 3 months)			475
	M1	36,000		June 30		Bank A/c (Sale proceeds)			15,000
	M2	19,000		June 30		Profit & Loss A/c (Loss on sale)			3,525
	M3	9,750	64,750	2016
				Mar. 31		Depreciation A/c
						M1		3,600
						M3		975	4,575
						Balance c/d
						M1		32,400
						M3		8,775	41,175
			64,750						64,750

Working Notes:

Calculation of Loss on Sale of M2

Particulars	Amount
Value of M2 as on Apr. 01, 2015	19,000
Less: Depreciation for 3 month	475
Value of Machinery as on June 30, 2015	18,525
Less: Sale Value	15,000
Loss on Sale	3,525

Question 27:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars			Amount (Rs)
2014				2015
Apr. 01	Bank A/c (M1)		40,000	Mar. 31		Depreciation A/c
Oct. 01	Bank A/c (M2)		20,000			M1	4,000
2015						M2	1,000
Jan. 01	Bank A/c (M3)		10,000			M3	250		5,250
				Mar. 31		Balance c/d
						M1	36,000
						M2	19,000
						M3	9,750		64,750

			70,000						70,000
2015				2015
Apr. 01	Balance b/d			June 30		Depreciation (M2) (for 3 months)			475
	M1	36,000		June 30		Bank A/c (Sale proceeds)			15,000
	M2	19,000		June 30		Profit & Loss A/c (Loss on sale)			3,525
	M3	9,750	64,750	2016
				Mar. 31		Depreciation A/c
						M1		3,600
						M3		975	4,575
						Balance c/d
						M1		32,400
						M3		8,775	41,175
			64,750						64,750

Working Notes:

Calculation of Loss on Sale of M2

Particulars	Amount
Value of M2 as on Apr. 01, 2015	19,000
Less: Depreciation for 3 month	475
Value of Machinery as on June 30, 2015	18,525
Less: Sale Value	15,000
Loss on Sale	3,525

Answer:

Machinery Account
Dr.												Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2014					2014
Oct01	Bank (I)			50,000	Mar. 31	Depreciation (for 6 Months)					3,750
					Mar. 31	Balance c/d					46,250
				50,000							50,000
2015					2015
Apr. 01	Balance b/d (I)			46,250	Mar. 31	Depreciation
Dec. 01	Bank (II)			10,000		I		6,938
						II		500			7,438
					Mar.31	Balance c/d
						I	39,312
						II	9,500				48,812
				56,250							56,250
2016					2016
Apr. 01	Balance b/d				Mar. 31	Depreciation
	I	39,312				I			5,897
	II	9,500		48,812		II			1,425		7,322
					Mar. 31	Bank (I)					28,415
					Mar. 31	Profit and Loss (Loss)					5,000
					Mar. 31	Balance c/d (II)					8,075
				48,812							48,812

Working Note:

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of Machine I on Apr. 01, 2016	39,312
Less: Depreciation (39,312 × 15%)	5,897
Book Value of Machine I on Mar. 31, 2016	33,415
Less: Sale Value	(28,415)
Loss on Sale of Machine I	5,000

Question 28:

Machinery Account
Dr.												Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2014					2014
Oct01	Bank (I)			50,000	Mar. 31	Depreciation (for 6 Months)					3,750
					Mar. 31	Balance c/d					46,250
				50,000							50,000
2015					2015
Apr. 01	Balance b/d (I)			46,250	Mar. 31	Depreciation
Dec. 01	Bank (II)			10,000		I		6,938
						II		500			7,438
					Mar.31	Balance c/d
						I	39,312
						II	9,500				48,812
				56,250							56,250
2016					2016
Apr. 01	Balance b/d				Mar. 31	Depreciation
	I	39,312				I			5,897
	II	9,500		48,812		II			1,425		7,322
					Mar. 31	Bank (I)					28,415
					Mar. 31	Profit and Loss (Loss)					5,000
					Mar. 31	Balance c/d (II)					8,075
				48,812							48,812

Working Note:

(1) Calculation of profit or loss on sale of machine:

Particulars	Amount (Rs)
Book Value of Machine I on Apr. 01, 2016	39,312
Less: Depreciation (39,312 × 15%)	5,897
Book Value of Machine I on Mar. 31, 2016	33,415
Less: Sale Value	(28,415)
Loss on Sale of Machine I	5,000

Answer:

Books of Sahara Transport Company Truck Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Jan. 01	Bank (I)		4,00,000	Mar. 31	Depreciation (for 3 Months)		20,000
				Mar. 31	Balance c/d (I)		3,80,000
			4,00,000				4,00,000
2015				2016
Apr. 01	Balance b/d (I)		3,80,000	Mar. 31	Depreciation		76,000
				Mar. 31	Balance c/d (I)		3,04,000
			3,80,000				3,80,000
2016				2017
Apr.01	Balance b/d (I)		3,04,000	July 01	Depreciation (I) (for 3 Months)		15,200
July 01	Profit and Loss (profit)		11,200	July 01	Bank (Insurance Claim)		3,00,000
July01	Bank (II)		5,00,000	Mar. 31	Depreciation(II) (for 9 Months)		75,000
				Mar. 31	Balance c/d (II)		4,25,000
			8,15,200				8,15,200

Working Note:

(1)Calculation of profit or loss on destruction of truck:

Particulars	Amount (Rs)
Book Value of Truck I on Apr.01, 2016	3,04,000
Less: Depreciation for 3 Months	(15,200)
Book Value of Truck I on July 01, 2016	2,88,800
Less: Insurance Claim Received	(3,00,000)
Profit	11,200

Question 29:

Books of Sahara Transport Company Truck Account
Dr.								Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
2015				2015
Jan. 01	Bank (I)		4,00,000	Mar. 31	Depreciation (for 3 Months)		20,000
				Mar. 31	Balance c/d (I)		3,80,000
			4,00,000				4,00,000
2015				2016
Apr. 01	Balance b/d (I)		3,80,000	Mar. 31	Depreciation		76,000
				Mar. 31	Balance c/d (I)		3,04,000
			3,80,000				3,80,000
2016				2017
Apr.01	Balance b/d (I)		3,04,000	July 01	Depreciation (I) (for 3 Months)		15,200
July 01	Profit and Loss (profit)		11,200	July 01	Bank (Insurance Claim)		3,00,000
July01	Bank (II)		5,00,000	Mar. 31	Depreciation(II) (for 9 Months)		75,000
				Mar. 31	Balance c/d (II)		4,25,000
			8,15,200				8,15,200

Working Note:

(1)Calculation of profit or loss on destruction of truck:

Particulars	Amount (Rs)
Book Value of Truck I on Apr.01, 2016	3,04,000
Less: Depreciation for 3 Months	(15,200)
Book Value of Truck I on July 01, 2016	2,88,800
Less: Insurance Claim Received	(3,00,000)
Profit	11,200

Answer:

Book of Astha Engineering Works Machinery Account
Dr.											Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2013					2014
July 01	Bank (I) (1,80,000 + 20,000)			2,00,000	Mar. 31	Depreciation (for 9 months)				15,000
					Mar. 31	Balance c/d				1,85,000
				2,00,000						2,00,000
2014					2015
Apr. 01	Balance b/d (I)			1,85,000	Mar. 31	Depreciation
Apr. 01	Bank (II)			2,40,000		I		18,500
						II		24,000		42,500
					Mar. 31	Balance c/d
						I	1,66,500
						II	2,16,000			3,82,500
				4,25,000						4,25,000
2015					2015
Apr. 01	Balance b/d				Oct. 01	Depreciation (I) (for 6 months)				8,325
	I	1,66,500			Oct. 01	Bank (I)				1,45,000
	II	2,16,000		3,82,500	Oct. 01	Profit and Loss (Loss)				13,175
2016					2016
Jan. 01	Bank (III)			4,00,000	Mar. 31	Depreciation
						II	21,600
						III (for 3 months)	10,000			31,600
					Mar. 31	Balance c/d
						II	1,94,400
						III	3,90,000			5,84,400
				7,82,500						7,82,500

Working Note:

(1) Calculation of profit or loss on sale of Machine I:

Particulars	Amount (Rs)
Book Value of as on Apr. 01, 2015	1,66,500
Less: Depreciation (for 6 Months)	(8,325)
Book Value on Oct. 01 2015	1,58,175
Less: Sale Value	(1,45,000)
Loss on Sale	13,175

Question 30:

Book of Astha Engineering Works Machinery Account
Dr.											Cr.
Date	Particulars		J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2013					2014
July 01	Bank (I) (1,80,000 + 20,000)			2,00,000	Mar. 31	Depreciation (for 9 months)				15,000
					Mar. 31	Balance c/d				1,85,000
				2,00,000						2,00,000
2014					2015
Apr. 01	Balance b/d (I)			1,85,000	Mar. 31	Depreciation
Apr. 01	Bank (II)			2,40,000		I		18,500
						II		24,000		42,500
					Mar. 31	Balance c/d
						I	1,66,500
						II	2,16,000			3,82,500
				4,25,000						4,25,000
2015					2015
Apr. 01	Balance b/d				Oct. 01	Depreciation (I) (for 6 months)				8,325
	I	1,66,500			Oct. 01	Bank (I)				1,45,000
	II	2,16,000		3,82,500	Oct. 01	Profit and Loss (Loss)				13,175
2016					2016
Jan. 01	Bank (III)			4,00,000	Mar. 31	Depreciation
						II	21,600
						III (for 3 months)	10,000			31,600
					Mar. 31	Balance c/d
						II	1,94,400
						III	3,90,000			5,84,400
				7,82,500						7,82,500

Working Note:

(1) Calculation of profit or loss on sale of Machine I:

Particulars	Amount (Rs)
Book Value of as on Apr. 01, 2015	1,66,500
Less: Depreciation (for 6 Months)	(8,325)
Book Value on Oct. 01 2015	1,58,175
Less: Sale Value	(1,45,000)
Loss on Sale	13,175

Answer:

Machinery Account
Dr.													Cr.
Date	Particulars			J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2014						2015
Apr. 01	Bank (I)				6,00,000	Mar. 31	Depreciation
Oct 01	Bank (II)				2,00,000		I			60,000
							II (for 6 months)			10,000		70,000
						Mar. 31	Balance c/d
							I		5,40,000
							II		1,90,000			7,30,000
					8,00,000							8,00,000
2015						2016
Apr. 01	Balance b/d					Mar. 31	Depreciation
	I		5,40,000				I		54,000
	II		1,90,000		7,30,000		II		19,000			73,000
						Mar. 31	Balance c/d
							I		4,86,000
							II		1,71,000			6,57,000
					7,30,000							7,30,000
2016						2017
Apr. 01	Balance b/d					Oct 01	Depreciation (I)					24,300
	I	4,86,000				Oct 01	Bank (I)					2,86,000
	II	1,71,000			6,57,000	Oct 01	Profit and Loss (Loss)					1,75,700
Oct 01	Bank (III)				4,00,000	Mar. 31	Depreciation
							II	17,100
							III (for 6 months)	20,000				37,100
						Mar. 31	Balance c/d
							II	1,53,900
							III	3,80,000				5,33,900
					10,57,000							10,57,000

Working Note:

(1) Calculation of Profit or Loss on sale of Machine I:

Particulars	Amount (Rs)
Book Value of Machine I on Apr. 01, 2017	4,86,000
Less: Depreciation (for 6 Months)	(24,300)
Book Value of Machine I on Oct 01, 2017	4,61,700
Less: Sale Value	(2,86,000)
Loss on Sale	1,75,700

Question 31:

Machinery Account
Dr.													Cr.
Date	Particulars			J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2014						2015
Apr. 01	Bank (I)				6,00,000	Mar. 31	Depreciation
Oct 01	Bank (II)				2,00,000		I			60,000
							II (for 6 months)			10,000		70,000
						Mar. 31	Balance c/d
							I		5,40,000
							II		1,90,000			7,30,000
					8,00,000							8,00,000
2015						2016
Apr. 01	Balance b/d					Mar. 31	Depreciation
	I		5,40,000				I		54,000
	II		1,90,000		7,30,000		II		19,000			73,000
						Mar. 31	Balance c/d
							I		4,86,000
							II		1,71,000			6,57,000
					7,30,000							7,30,000
2016						2017
Apr. 01	Balance b/d					Oct 01	Depreciation (I)					24,300
	I	4,86,000				Oct 01	Bank (I)					2,86,000
	II	1,71,000			6,57,000	Oct 01	Profit and Loss (Loss)					1,75,700
Oct 01	Bank (III)				4,00,000	Mar. 31	Depreciation
							II	17,100
							III (for 6 months)	20,000				37,100
						Mar. 31	Balance c/d
							II	1,53,900
							III	3,80,000				5,33,900
					10,57,000							10,57,000

Working Note:

(1) Calculation of Profit or Loss on sale of Machine I:

Particulars	Amount (Rs)
Book Value of Machine I on Apr. 01, 2017	4,86,000
Less: Depreciation (for 6 Months)	(24,300)
Book Value of Machine I on Oct 01, 2017	4,61,700
Less: Sale Value	(2,86,000)
Loss on Sale	1,75,700

Answer:

Machinery Account
Dr.	Cr.
Date		Particulars		J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2014						2015
Oct 01		Bank				Mar. 31	Depreciation
		I (3/4)	30,000				I (3/4) for 6 months	1,500
		I (1/4)	10,000		40,000		I (1/4) for 6 months	500			2,000
						Mar. 31	Balance c/d
							I (3/4)	28,500
							I (1/4)	9,500			38,000
					40,000						40,000
2015						2016
Apr. 01		Balance b/d				Mar. 31	Depreciation
		I (3/4)	28,500				I (3/4)	2,850
		I (1/4)	9,500		38,000		I (1/4)	950			3,800
						Mar. 31	Balance c/d
							I (3/4)		25,650
							I (1/4)		8,550		34,200
					38,000						38,000
2016						2017
Apr. 01		Balance b/d				Jan. 31	Depreciation I (1/4)(for 10 Months)				713
		I (3/4)	25,650			Jan. 31	Bank (I) (1/4)				5,600
		I (1/4)	8,550		34,200	Jan. 31	Profit and Loss (Loss on sale)				2,237
Oct. 31		Bank (II)			15,000	Mar. 31	Depreciation
							I (3/4)		2,565
							II (for 2 months)		250		2,815
						Mar. 31	Balance c/d
							I (3/4)		23,085
							II		14,750		37,835
					49,200						49,200

Working Note:

(1)Calculation of Profit or Loss on Sale of Machine I (1/4):

Particulars	Amount (Rs)
Book Value of Machine (I)(1/4) on Apr. 01, 2017	8,550
Less: Depreciation for 10 Months	(713)
Book Value of Machine (I)(1/4) on Jan. 31 2017	7,837
Less: Sale Value	(5,600)
Loss on Sale of Machine I (1/4)	2,237

Question 32:

Machinery Account
Dr.	Cr.
Date		Particulars		J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2014						2015
Oct 01		Bank				Mar. 31	Depreciation
		I (3/4)	30,000				I (3/4) for 6 months	1,500
		I (1/4)	10,000		40,000		I (1/4) for 6 months	500			2,000
						Mar. 31	Balance c/d
							I (3/4)	28,500
							I (1/4)	9,500			38,000
					40,000						40,000
2015						2016
Apr. 01		Balance b/d				Mar. 31	Depreciation
		I (3/4)	28,500				I (3/4)	2,850
		I (1/4)	9,500		38,000		I (1/4)	950			3,800
						Mar. 31	Balance c/d
							I (3/4)		25,650
							I (1/4)		8,550		34,200
					38,000						38,000
2016						2017
Apr. 01		Balance b/d				Jan. 31	Depreciation I (1/4)(for 10 Months)				713
		I (3/4)	25,650			Jan. 31	Bank (I) (1/4)				5,600
		I (1/4)	8,550		34,200	Jan. 31	Profit and Loss (Loss on sale)				2,237
Oct. 31		Bank (II)			15,000	Mar. 31	Depreciation
							I (3/4)		2,565
							II (for 2 months)		250		2,815
						Mar. 31	Balance c/d
							I (3/4)		23,085
							II		14,750		37,835
					49,200						49,200

Working Note:

(1)Calculation of Profit or Loss on Sale of Machine I (1/4):

Particulars	Amount (Rs)
Book Value of Machine (I)(1/4) on Apr. 01, 2017	8,550
Less: Depreciation for 10 Months	(713)
Book Value of Machine (I)(1/4) on Jan. 31 2017	7,837
Less: Sale Value	(5,600)
Loss on Sale of Machine I (1/4)	2,237

Answer:

Machinery Account
Dr.												Cr.
Date	Particulars			J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2015						2016
July 01	Bank					Mar. 31	Depreciation
	I (2/3)		20,000				I (2/3)		1,500
	I (1/3)		10,000		30,000		I (1/3)		750
2016 Jan. 01	Bank (II)				20,000		II		500		2,750
						Mar. 31	Balance c/d
							I (2/3)		18,500
							I (1/3)		9,250
							II		19,500		47,250
					50,000						50,000
2016						2017
Apr. 01	Balance b/d					Mar. 31	Depreciation
	I (2/3)	18,500					I (2/3)	1,850
	I (1/3)	9,250					I (1/3)	925
	II	19,500			47,250		II	1,950
Oct 01	Bank (III)				10,000		III	500			5,225
						Mar. 31	Balance c/d
							I (2/3)	16,650
							I (1/3)	8,325
							II	17,550
							III	9,500			52,025
					57,250						57,250
2017						2017
Apr. 01	Balance b/d					Apr. 01	Bank (I)(1/3)				3,000
	I (2/3)	16,650				Apr. 01 2018	Profit and Loss (Loss)				5,325
	I (1/3)	8,325				Mar. 31	Depreciation
	II	17,550					I (2/3)	1,665
	III	9,500			52,025		II	1,755
							III	950			4,370
						Mar. 31	Balance c/d
							I (2/3)	14,985
							II	15,795
							III	8,550			39,330
					52,025						52,025

Working Note:

(1) Calculation of Profit or Loss on Sale of Plant I(1/3):

Particulars	Amount (Rs)
Book Value of Plant I (1/3) as on Apr 01, 2017	8,325
Less: Sale Value	(3,000)
Loss on Sale	5,325

Question 33:

Machinery Account
Dr.												Cr.
Date	Particulars			J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2015						2016
July 01	Bank					Mar. 31	Depreciation
	I (2/3)		20,000				I (2/3)		1,500
	I (1/3)		10,000		30,000		I (1/3)		750
2016 Jan. 01	Bank (II)				20,000		II		500		2,750
						Mar. 31	Balance c/d
							I (2/3)		18,500
							I (1/3)		9,250
							II		19,500		47,250
					50,000						50,000
2016						2017
Apr. 01	Balance b/d					Mar. 31	Depreciation
	I (2/3)	18,500					I (2/3)	1,850
	I (1/3)	9,250					I (1/3)	925
	II	19,500			47,250		II	1,950
Oct 01	Bank (III)				10,000		III	500			5,225
						Mar. 31	Balance c/d
							I (2/3)	16,650
							I (1/3)	8,325
							II	17,550
							III	9,500			52,025
					57,250						57,250
2017						2017
Apr. 01	Balance b/d					Apr. 01	Bank (I)(1/3)				3,000
	I (2/3)	16,650				Apr. 01 2018	Profit and Loss (Loss)				5,325
	I (1/3)	8,325				Mar. 31	Depreciation
	II	17,550					I (2/3)	1,665
	III	9,500			52,025		II	1,755
							III	950			4,370
						Mar. 31	Balance c/d
							I (2/3)	14,985
							II	15,795
							III	8,550			39,330
					52,025						52,025

Working Note:

(1) Calculation of Profit or Loss on Sale of Plant I(1/3):

Particulars	Amount (Rs)
Book Value of Plant I (1/3) as on Apr 01, 2017	8,325
Less: Sale Value	(3,000)
Loss on Sale	5,325

Answer:

Books of Tit-Bit and Company Machinery Account
Dr.										Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2015				2016
Apr. 01	Balance b/d (I) (5,26,000 + 74,000)		6,00,000	Jan. 01	Depreciation (for 9 Months on 74,000 @ 10%)				5,550
Oct 01	Bank (II)		2,50,000	Jan. 01	Bank				60,000
				Jan. 01	Profit and Loss (Loss)				8,450
				Mar. 31	Depreciation
					I ( on Rs 5,26,000)	52,600
					II (for 6 months)	12,500			65,100
					Balance c/d
					I		4,73,400
					II		2,37,500		7,10,900
			8,50,000						8,50,000

Working Note:

1. Calculation of Book Value of Machine Sold

Particulars	Amount (Rs)
Machine Purchased on July 01, 2014	80,000
Less: Depreciation for 9 Months in 2014-15	(6,000)
Book Value of Machine on Apr 01, 2015	74,000

2. Calculation of Profit or Loss on sale of Machinery:

Particulars	Amount (Rs)
Book Value of Machine on Apr. 01, 2015	74,000
Less: Depreciation for 9 Months	(5,550)
Book Value on Jan. 01, 2016	68,450
Less: Sale Value	(60,000)
Loss on Sale	8,450

*There is a misprint in the book. The machine that has been sold on Jan.01, 2016 has been mentioned as purchased on 1st July, 2015 which should be 1st July, 2014.

Question 34:

Books of Tit-Bit and Company Machinery Account
Dr.										Cr.
Date	Particulars	J.F.	Amount (Rs)	Date	Particulars			J.F.	Amount (Rs)
2015				2016
Apr. 01	Balance b/d (I) (5,26,000 + 74,000)		6,00,000	Jan. 01	Depreciation (for 9 Months on 74,000 @ 10%)				5,550
Oct 01	Bank (II)		2,50,000	Jan. 01	Bank				60,000
				Jan. 01	Profit and Loss (Loss)				8,450
				Mar. 31	Depreciation
					I ( on Rs 5,26,000)	52,600
					II (for 6 months)	12,500			65,100
					Balance c/d
					I		4,73,400
					II		2,37,500		7,10,900
			8,50,000						8,50,000

Working Note:

1. Calculation of Book Value of Machine Sold

Particulars	Amount (Rs)
Machine Purchased on July 01, 2014	80,000
Less: Depreciation for 9 Months in 2014-15	(6,000)
Book Value of Machine on Apr 01, 2015	74,000

2. Calculation of Profit or Loss on sale of Machinery:

Particulars	Amount (Rs)
Book Value of Machine on Apr. 01, 2015	74,000
Less: Depreciation for 9 Months	(5,550)
Book Value on Jan. 01, 2016	68,450
Less: Sale Value	(60,000)
Loss on Sale	8,450

*There is a misprint in the book. The machine that has been sold on Jan.01, 2016 has been mentioned as purchased on 1st July, 2015 which should be 1st July, 2014.

Answer:

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2015
Apr. 01	Balance b/d	12,50,000	Apr. 01		Provision for Depreciation Account	1,06,000
Oct. 01	Profit and Loss A/c (Gain on		Oct. 01		Bank A/c	1,50,000
	Sale)	6,000	2016
			Mar. 31		Balance c/d	10,00,000
		12,56,000				12,56,000

Provision for Depreciation Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2015
Oct. 01	Machinery A/c	1,06,000	Apr. 01		Balance b/d	2,90,000
2016			2016
Mar. 31	Balance c/d	3,60,000	Mar. 31		Depreciation A/c	1,76,000
		4,66,000				4,66,000

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2014	2,50,000
Less: Provision for Depreciation ( 20% on WDV for 2.5 years)	1,06,000
	1,44,000
Less: Sale Value	1,50,000
Gain on Sale	6,000

Question 35:

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2015
Apr. 01	Balance b/d	12,50,000	Apr. 01		Provision for Depreciation Account	1,06,000
Oct. 01	Profit and Loss A/c (Gain on		Oct. 01		Bank A/c	1,50,000
	Sale)	6,000	2016
			Mar. 31		Balance c/d	10,00,000
		12,56,000				12,56,000

Provision for Depreciation Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2015			2015
Oct. 01	Machinery A/c	1,06,000	Apr. 01		Balance b/d	2,90,000
2016			2016
Mar. 31	Balance c/d	3,60,000	Mar. 31		Depreciation A/c	1,76,000
		4,66,000				4,66,000

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2014	2,50,000
Less: Provision for Depreciation ( 20% on WDV for 2.5 years)	1,06,000
	1,44,000
Less: Sale Value	1,50,000
Gain on Sale	6,000

Answer:

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2016			2016
Apr. 01	Balance b/d	1,00,000	Apr. 01		Bank A/c	8,000
			Apr. 01		Provision for Depreciation Account	5,420
			Apr. 01		Profit and Loss A/c (Loss on Sale)	6,580
			2017
			Mar. 31		Balance c/d	80,000
		20,00,000				20,00,000

Provision for Depreciation Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2016			2016
Apr. 01	Machinery A/c	5,420	Apr. 01		Balance b/d	36,000
2017			2017
Mar. 31	Balance c/d	35,522	Mar. 31		Depreciation A/c	4,942
		40,942				40,942

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2013	20,000
Less: Provision for Depreciation ( 10% on WDV for 3 years)	5,420
	14,580
Less: Sale Value	8,000
Loss on Sale	6,580

Question 36:

Machinery Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2016			2016
Apr. 01	Balance b/d	1,00,000	Apr. 01		Bank A/c	8,000
			Apr. 01		Provision for Depreciation Account	5,420
			Apr. 01		Profit and Loss A/c (Loss on Sale)	6,580
			2017
			Mar. 31		Balance c/d	80,000
		20,00,000				20,00,000

Provision for Depreciation Account
Dr.				Cr.
Date	Particulars	Amount (Rs)	Date		Particulars	Amount (Rs)
2016			2016
Apr. 01	Machinery A/c	5,420	Apr. 01		Balance b/d	36,000
2017			2017
Mar. 31	Balance c/d	35,522	Mar. 31		Depreciation A/c	4,942
		40,942				40,942

Working Notes: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2013	20,000
Less: Provision for Depreciation ( 10% on WDV for 3 years)	5,420
	14,580
Less: Sale Value	8,000
Loss on Sale	6,580

Answer:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Jun. 01	Bank A/c			Mar. 31		Balance c/d
	M1	7,50,000				M1	7,50,000
	M2	1,50,000				M2	1,50,000	9,00,000
			9,00,000					9,00,000
2015				2016
Apr. 01	Balance b/d			Mar. 31		Balance c/d
	M1	7,50,000				M1	7,50,000
	M2	1,50,000	9,00,000			M2	1,50,000	9,00,000
			9,00,000					9,00,000
2016				2016
Apr. 01	Balance b/d
	M1	7,50,000		Dec. 01		Bank A/c M2		60,000
	M2	1,50,000	9,00,000	Dec. 01		Profit and Loss A/c (Loss on Sale)		55,500
2017				Dec. 01		Provision for Depreciation Account		34,500
Jan 01	Bank A/c (M3)		3,00,000	2017
				Mar. 31		Balance c/d
						M1	7,50,000
						M3	3,00,000	10,50,000
			12,00,000					12,00,000

Provision for Depreciation Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2015				2014
Mar. 31	Balance c/d			Mar. 31		Depreciation A/c
	M1	62,500				M1	62,500
	M2	12,500	75,000			M2	12,500	75,000
			75,000					75,000
2016				2015
Mar. 31	Balance c/d			Mar. 31		Balance b/d
	M1	1,31,250				M1	62,500
	M2	26,250	1,57,500	2016		M2	12,500	75,000
				Mar. 31		Depreciation A/c
						M1	68,750
						M2	13,750	82,500
			1,57,500					1,57,500
2016				2016
Dec. 01	Machinery A/c		34,500	Mar. 31		Balance b/d
2017						M1	1,31,250
Mar. 31	Balance c/d			2017		M2	26,250	1,57,500
	M1	1,93,125		Mar. 31		Depreciation A/c
	M3	7,500	2,00,625			M1	61,875
						M2	8,250
						M3	7,500	77,625
			2,35,125					2,35,125

Working Notes:

WN 1: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2013	1,50,000
Less: Provision for Depreciation	34,500
	1,15,500
Less: Sale Value	60,000
Loss on Sale	55,500

WN2: Calculation of Depreciation

Year	Machine	Depreciation
2014-15	M1	$= 7, 50, 000 \times \frac{10}{100} \times \frac{10}{12} = 62,500$
	M2	$= 1, 50, 000 \times \frac{10}{100} \times \frac{10}{12} = 1 2,500$
	Total	Rs 75,000

2015-16	M1	$= 6, 87, 500 \times \frac{10}{100} = 68, 750$
	M2	$= 1, 37, 500 \times \frac{10}{100} = 13, 750$
	Total	Rs 82,500

2016-17	M1	$= 6, 18, 750 \times \frac{10}{100} = 61, 875$
	M2	$= 1, 23, 750 \times \frac{10}{100} \times \frac{8}{12} = 8, 250$
	M3	$= 3, 00, 000 \times \frac{10}{100} \times \frac{3}{12} = 7, 500$
	Total	Rs 77,625

Question 37:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Jun. 01	Bank A/c			Mar. 31		Balance c/d
	M1	7,50,000				M1	7,50,000
	M2	1,50,000				M2	1,50,000	9,00,000
			9,00,000					9,00,000
2015				2016
Apr. 01	Balance b/d			Mar. 31		Balance c/d
	M1	7,50,000				M1	7,50,000
	M2	1,50,000	9,00,000			M2	1,50,000	9,00,000
			9,00,000					9,00,000
2016				2016
Apr. 01	Balance b/d
	M1	7,50,000		Dec. 01		Bank A/c M2		60,000
	M2	1,50,000	9,00,000	Dec. 01		Profit and Loss A/c (Loss on Sale)		55,500
2017				Dec. 01		Provision for Depreciation Account		34,500
Jan 01	Bank A/c (M3)		3,00,000	2017
				Mar. 31		Balance c/d
						M1	7,50,000
						M3	3,00,000	10,50,000
			12,00,000					12,00,000

Provision for Depreciation Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2015				2014
Mar. 31	Balance c/d			Mar. 31		Depreciation A/c
	M1	62,500				M1	62,500
	M2	12,500	75,000			M2	12,500	75,000
			75,000					75,000
2016				2015
Mar. 31	Balance c/d			Mar. 31		Balance b/d
	M1	1,31,250				M1	62,500
	M2	26,250	1,57,500	2016		M2	12,500	75,000
				Mar. 31		Depreciation A/c
						M1	68,750
						M2	13,750	82,500
			1,57,500					1,57,500
2016				2016
Dec. 01	Machinery A/c		34,500	Mar. 31		Balance b/d
2017						M1	1,31,250
Mar. 31	Balance c/d			2017		M2	26,250	1,57,500
	M1	1,93,125		Mar. 31		Depreciation A/c
	M3	7,500	2,00,625			M1	61,875
						M2	8,250
						M3	7,500	77,625
			2,35,125					2,35,125

Working Notes:

WN 1: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on Apr. 01, 2013	1,50,000
Less: Provision for Depreciation	34,500
	1,15,500
Less: Sale Value	60,000
Loss on Sale	55,500

WN2: Calculation of Depreciation

Year	Machine	Depreciation
2014-15	M1	$= 7, 50, 000 \times \frac{10}{100} \times \frac{10}{12} = 62,500$
	M2	$= 1, 50, 000 \times \frac{10}{100} \times \frac{10}{12} = 1 2,500$
	Total	Rs 75,000

2015-16	M1	$= 6, 87, 500 \times \frac{10}{100} = 68, 750$
	M2	$= 1, 37, 500 \times \frac{10}{100} = 13, 750$
	Total	Rs 82,500

2016-17	M1	$= 6, 18, 750 \times \frac{10}{100} = 61, 875$
	M2	$= 1, 23, 750 \times \frac{10}{100} \times \frac{8}{12} = 8, 250$
	M3	$= 3, 00, 000 \times \frac{10}{100} \times \frac{3}{12} = 7, 500$
	Total	Rs 77,625

Answer:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	2,96,234				M1	29,623
	M2	40,000	3,36,234			M2	4,000
2015						M3	320	33,943
Jan.01	Bank A/c (M3)		12,800	Dec. 31		Balance c/d
						M1	2,66,611
						M2	36,000
						M3	12,480	3,15,091
			3,49,034					3,49,034
2015				2016
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c		31,509
	M1	2,66,611				M1	26,661
	M2	36,000				M2	3,600
	M3	12,480	3,15,091			M3	1,248
				Mar. 31		Balance c/d
						M1	2,39,950
						M2	32,400
						M3	11,232	2,83,582
			3,15,091					3,15,091
2016				2016
Apr. 01	Balance b/d			Sep. 30		Depreciation A/c (on M2 for 6 months)		1,620
	M1	2,39,950				Bank A/c (Sale of M2)		29,000
	M2	32,400				Profit and Loss A/c (Loss on Sale)		1,780
	M3	11,232	2,83,582	2017
Sep. 01	Bank A/c (M4)		61,000	Mar.31		Depreciation on-
						M1	23,995
						M3	1,123
						M4	3,050	28,168
				Dec. 31		Balance c/d
						M1	2,15,955
						M3	10,109
						M4	57,950	284,014
			3,44,582					3,44,582

Working Notes:

1. Calculation of Value of Machinery as on April 1, 2014

Particulars	Amount
Value of Machinery as on April 1, 2016	2,98,000
Add: Depreciation for 2015-16	33,111
Value of Machinery as on April 1, 2015	3,31,111
Add: Depreciation for 2014-15
(1,500+33,623)	35,123
Value of Machinery as on April 1, 2014	3,66,234

2. Calculation of Profit or Loss on Sale

Particulars	Amount
Value of M2 as on Apr. 01, 2016	32,400
Less: Depreciation for 6 months	1,620
Value of M2 as on Mar. 01, 2012	30,780
Less: Sale Value	29,000
Loss on Sale	1,780

Question 38:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	2,96,234				M1	29,623
	M2	40,000	3,36,234			M2	4,000
2015						M3	320	33,943
Jan.01	Bank A/c (M3)		12,800	Dec. 31		Balance c/d
						M1	2,66,611
						M2	36,000
						M3	12,480	3,15,091
			3,49,034					3,49,034
2015				2016
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c		31,509
	M1	2,66,611				M1	26,661
	M2	36,000				M2	3,600
	M3	12,480	3,15,091			M3	1,248
				Mar. 31		Balance c/d
						M1	2,39,950
						M2	32,400
						M3	11,232	2,83,582
			3,15,091					3,15,091
2016				2016
Apr. 01	Balance b/d			Sep. 30		Depreciation A/c (on M2 for 6 months)		1,620
	M1	2,39,950				Bank A/c (Sale of M2)		29,000
	M2	32,400				Profit and Loss A/c (Loss on Sale)		1,780
	M3	11,232	2,83,582	2017
Sep. 01	Bank A/c (M4)		61,000	Mar.31		Depreciation on-
						M1	23,995
						M3	1,123
						M4	3,050	28,168
				Dec. 31		Balance c/d
						M1	2,15,955
						M3	10,109
						M4	57,950	284,014
			3,44,582					3,44,582

Working Notes:

1. Calculation of Value of Machinery as on April 1, 2014

Particulars	Amount
Value of Machinery as on April 1, 2016	2,98,000
Add: Depreciation for 2015-16	33,111
Value of Machinery as on April 1, 2015	3,31,111
Add: Depreciation for 2014-15
(1,500+33,623)	35,123
Value of Machinery as on April 1, 2014	3,66,234

2. Calculation of Profit or Loss on Sale

Particulars	Amount
Value of M2 as on Apr. 01, 2016	32,400
Less: Depreciation for 6 months	1,620
Value of M2 as on Mar. 01, 2012	30,780
Less: Sale Value	29,000
Loss on Sale	1,780

Answer:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
July. 01	Bank A/c (M1)		1,20,000	Mar. 31		Depreciation A/c
Oct 01	Bank A/c (M2)		1,20,000			M1	40,000
						M2	40,000	80,000
				Mar. 31		Balance c/d
						M1	80,000
						M2	80,000	1,60,000
			2,40,000					2,40,000
2015				2016
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	80,000				M1	26,667
	M2	80,000	1,60,000			M2	26,667
Oct 01	Bank A/c (M3)		20,000			M3	6,666	60,000
				Mar. 31		Balance c/d
						M1	53,333
						M2	53,333
						M3	13,334	1,20,000
			1,80,000					1,80,000
2016				2016
Apr. 01	Balance b/d			Apr. 01		Bank A/c		12,000
	M1	53,333		Apr. 01		Profit and Loss A/c (Loss on Sale)		5,778
	M2	53,333		2017
	M3	13,334	1,20,000	Mar.31		Depreciation A/c
2017						M1	11,851
Jan 01	Bank A/c (M4)		60,000			M2	17,777
						M3	4,444
						M4	20,000	54,072
				Mar.31		Balance c/d
						M1	23,704
						M2	35,556
						M3	8,890
						M4	40,000	1,08,150
			1,80,000					1,80,000

Working Notes:

Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on July,2014	40,000
Less: Depreciation	22,222
	17,778
Less: Sale Value	12,000
Loss on Sale	5,778

Calculation of Depreciation

Year	Machine	Depreciation
2014-15	M1	$= 1, 20, 000 \times \frac{1}{3} = 40, 000$
	M2	$= 1, 20, 000 \times \frac{1}{3} = 40, 000$
	Total	Rs 80,000

2015-16	M1	$= 80, 000 \times \frac{1}{3} = 26, 667$
	M2	$= 80, 000 \times \frac{1}{3} = 26, 667$
	M3	$= 20, 000 \times \frac{1}{3} = 6, 666$
	Total	Rs 60,000

2016-17	M1	$= (53, 333 - 17, 778) \times \frac{1}{3} = 11, 851$
	M2	$= 53, 333 \times \frac{1}{3} = 17, 777$
	M3	$= 13, 334 \times \frac{1}{3} = 4, 444$
	M4	$= 60, 000 \times \frac{1}{3} = 20, 000$
	Total	Rs 54,072

Question 39:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
July. 01	Bank A/c (M1)		1,20,000	Mar. 31		Depreciation A/c
Oct 01	Bank A/c (M2)		1,20,000			M1	40,000
						M2	40,000	80,000
				Mar. 31		Balance c/d
						M1	80,000
						M2	80,000	1,60,000
			2,40,000					2,40,000
2015				2016
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	80,000				M1	26,667
	M2	80,000	1,60,000			M2	26,667
Oct 01	Bank A/c (M3)		20,000			M3	6,666	60,000
				Mar. 31		Balance c/d
						M1	53,333
						M2	53,333
						M3	13,334	1,20,000
			1,80,000					1,80,000
2016				2016
Apr. 01	Balance b/d			Apr. 01		Bank A/c		12,000
	M1	53,333		Apr. 01		Profit and Loss A/c (Loss on Sale)		5,778
	M2	53,333		2017
	M3	13,334	1,20,000	Mar.31		Depreciation A/c
2017						M1	11,851
Jan 01	Bank A/c (M4)		60,000			M2	17,777
						M3	4,444
						M4	20,000	54,072
				Mar.31		Balance c/d
						M1	23,704
						M2	35,556
						M3	8,890
						M4	40,000	1,08,150
			1,80,000					1,80,000

Working Notes:

Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine as on July,2014	40,000
Less: Depreciation	22,222
	17,778
Less: Sale Value	12,000
Loss on Sale	5,778

Calculation of Depreciation

Year	Machine	Depreciation
2014-15	M1	$= 1, 20, 000 \times \frac{1}{3} = 40, 000$
	M2	$= 1, 20, 000 \times \frac{1}{3} = 40, 000$
	Total	Rs 80,000

2015-16	M1	$= 80, 000 \times \frac{1}{3} = 26, 667$
	M2	$= 80, 000 \times \frac{1}{3} = 26, 667$
	M3	$= 20, 000 \times \frac{1}{3} = 6, 666$
	Total	Rs 60,000

2016-17	M1	$= (53, 333 - 17, 778) \times \frac{1}{3} = 11, 851$
	M2	$= 53, 333 \times \frac{1}{3} = 17, 777$
	M3	$= 13, 334 \times \frac{1}{3} = 4, 444$
	M4	$= 60, 000 \times \frac{1}{3} = 20, 000$
	Total	Rs 54,072

Answer:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2013				2013
Apr. 01	Balance b/d			Sep. 01		Depreciation A/c (on M2 for 5 months)		962
	M1	10,000		2014		Profit and Loss A/c (Loss on accident)		14,433
	M2	15,395		Mar. 31		Depreciation on-
	M3	26,775				M1	1,500
	M4	4,07,830	4,60,000			M3	4,016
						M4	61,174	66,690
				Mar. 31		Balance c/d
						M1	8,500
						M3	22,759
						M4	3,46,656	3,77,915
			4,60,000					4,60,000
2014				2015
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	8,500				M1	1,275
	M3	22,759				M3	3,414
	M4	3,46,656	3,77,915			M4	51,998
July 01	Bank A/c (M5)		52,500			M5 (for 9 months)	5,906	62,593
				Mar. 31		Balance c/d
						M1	7,225
						M3	19,345
						M4	2,94,658
						M5	46,594	3,67,822
			4,30,415					4,30,415
2015				2015
Apr. 01	Balance b/d			Aug. 31		Depreciation A/c (on M3 for 5 months)		1,209
	M1	7,225				Bank A/c (Sale of M3)		36,000
	M3	19,345				Depreciation on-
	M4	2,94,658				M1	1,084
	M5	46,594	3,67,822			M4	44,199
2015						M5	6,989	52,272
Aug. 31	Profit and Loss A/c (Profit			2016
	on Sale)		17,864	Mar. 31		Balance c/d
						M1	6,141
						M4	2,50,459
						M5	39,605	2,96,205
			3,85,686					3,85,686
2016				2016
Apr. 01	Balance b/d			Nov. 01		Depreciation A/c (on M1 for 7 months)		537
	M1	6,141				Bank A/c (Sale of M1)		4,000
	M4	2,50,459				Profit and Loss A/c (Loss on Sale)		1,604
	M5	39,605	2,96,205	2017
				Mar. 31		Depreciation on-
						M4	37,569
						M5	5,941	43,510
				Mar. 31		Balance c/d
						M4	2,12,890
						M5	33,664	2,46,554
			2,96,205					2,96,205

Working Notes: Calculation of Profit or Loss on M2

Particulars	Amount
Value of M2 as on May. 01, 2011	21,000
Less: Depreciation for 11 months	2,888
Value of M2 as on Apr. 01, 2012	18,112
Less: Depreciation for 2012-13	2,717
Value of M2 as on Apr. 01, 2013	15,395
Less: Depreciation for 5 months	962
Loss due to accident	14,433

Question 40:

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2013				2013
Apr. 01	Balance b/d			Sep. 01		Depreciation A/c (on M2 for 5 months)		962
	M1	10,000		2014		Profit and Loss A/c (Loss on accident)		14,433
	M2	15,395		Mar. 31		Depreciation on-
	M3	26,775				M1	1,500
	M4	4,07,830	4,60,000			M3	4,016
						M4	61,174	66,690
				Mar. 31		Balance c/d
						M1	8,500
						M3	22,759
						M4	3,46,656	3,77,915
			4,60,000					4,60,000
2014				2015
Apr. 01	Balance b/d			Mar. 31		Depreciation A/c
	M1	8,500				M1	1,275
	M3	22,759				M3	3,414
	M4	3,46,656	3,77,915			M4	51,998
July 01	Bank A/c (M5)		52,500			M5 (for 9 months)	5,906	62,593
				Mar. 31		Balance c/d
						M1	7,225
						M3	19,345
						M4	2,94,658
						M5	46,594	3,67,822
			4,30,415					4,30,415
2015				2015
Apr. 01	Balance b/d			Aug. 31		Depreciation A/c (on M3 for 5 months)		1,209
	M1	7,225				Bank A/c (Sale of M3)		36,000
	M3	19,345				Depreciation on-
	M4	2,94,658				M1	1,084
	M5	46,594	3,67,822			M4	44,199
2015						M5	6,989	52,272
Aug. 31	Profit and Loss A/c (Profit			2016
	on Sale)		17,864	Mar. 31		Balance c/d
						M1	6,141
						M4	2,50,459
						M5	39,605	2,96,205
			3,85,686					3,85,686
2016				2016
Apr. 01	Balance b/d			Nov. 01		Depreciation A/c (on M1 for 7 months)		537
	M1	6,141				Bank A/c (Sale of M1)		4,000
	M4	2,50,459				Profit and Loss A/c (Loss on Sale)		1,604
	M5	39,605	2,96,205	2017
				Mar. 31		Depreciation on-
						M4	37,569
						M5	5,941	43,510
				Mar. 31		Balance c/d
						M4	2,12,890
						M5	33,664	2,46,554
			2,96,205					2,96,205

Working Notes: Calculation of Profit or Loss on M2

Particulars	Amount
Value of M2 as on May. 01, 2011	21,000
Less: Depreciation for 11 months	2,888
Value of M2 as on Apr. 01, 2012	18,112
Less: Depreciation for 2012-13	2,717
Value of M2 as on Apr. 01, 2013	15,395
Less: Depreciation for 5 months	962
Loss due to accident	14,433

Answer:

(I)

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Oct. 01	Bank A/c (M1)		3,00,000	Mar. 31		Depreciation A/c (M1)		30,000
	(2,00,000+40,000+60,000)			Mar. 31		Balance c/d (M1)		2,70,000
			3,00,000					3,00,000
2015				2016
Apr. 01	Balance b/d (M1)		2,70,000	Mar. 31		Depreciation A/c
Apr. 01	Bank A/c (M2)		1,00,000			M1	60,000
						M2	20,000	80,000
				Mar. 31		Balance c/d
						M1	2,10,000
						M2	80,000	2,90,000
			1,80,000					1,80,000
2016				2016
Apr. 01	Balance b/d			Oct. 01		Bank A/c		40,000
	M1	2,10,000		Oct. 01		Profit and Loss A/c (Loss on Sale)		20,000
	M2	80,000	2,90,000	2017
2016				Mar.31		Depreciation A/c
Oct 01	Bank A/c (M3)		50,000			M1	40,000
						M2	20,000
						M3	5,000	65,000
						Depreciation on Sold Machinery		10,000
				Mar.31		Balance c/d
						M1	1,00,000
						M2	60,000
						M3	45,000	2,05,000

			3,40,000					3,40,000

(II)

Machinery Account
Dr.					Cr.
Date	Particulars		Amount (Rs)	Date		Particulars		Amount (Rs)
2014				2015
Oct. 01	Bank A/c M1		3,00,000	Mar. 31		Balance c/d M1		3,00,000
	(2,00,000+40,000+60,000)
			3,00,000					3,00,000
2015				2016
Mar. 31	Balance b/d (M1)		3,00,000	Mar. 31		Balance c/d
Apr. 01	Bank A/c (M2)		1,00,000			M1	3,00,000
						M2	1,00,000	4,00,000
			1,80,000					1,80,000
2016				2016
Apr. 01	Balance b/d			Oct. 01		Bank A/c		40,000
	M1	3,00,000		Oct. 01		Profit and Loss A/c (Loss on Sale)		20,000
	M2	1,00,000	4,00,000	Oct. 01		Provision for Depreciation		40,000
Oct. 01	Bank A/c (M3)		50,000	2017
				Mar. 31		Balance c/d
						M1	2,00,000
						M2	1,00,000
						M3	50,000	3,50,000

			4,50,000					3,40,000

Provision for Depreciation Account
Dr.						Cr.
Date	Particulars			Amount (Rs)	Date		Particulars		Amount (Rs)
2015					2014
Mar. 31	Balance c/d (M1)			30,000	Mar. 31		Depreciation A/c (M1)		30,000
				30,000					30,000
					2015
2016					Mar. 31		Balance b/d (M1)		30,000
Mar. 31	Balance c/d				Mar. 31		Depreciation A/c
	M1	90,000					M1	60,000
	M2	20,000		1,10,000			M2	20,000	80,000
				1,10,000					1,10,000
2016					2016
Dec. 01	Machinery A/c			40,000	Mar. 31		Balance b/d
2017							M1	90,000
Mar. 31	Balance c/d						M2	20,000	1,10,000
	M1		1,00,000		Mar. 31		Depreciation A/c
	M2		40,000				M1	40,000
	M3		5,000	1,45,000			M2	20,000
							M3	5,000
							Sold Machinery	10,000	75,000
				1,85,000					1,85,000

Working Notes:

WN 1: Calculation of Profit or Loss on Sale

Particulars	Amount
Value of Machine	1,00,000
Less: Depreciation	40,000
	60,000
Less: Sale Value	40,000
Loss on Sale	20,000

WN 2:Calculation of Depreciation

Year	Machine	Depreciation
2014-15	M1	$= 3, 00, 000 \times \frac{20}{100} \times \frac{6}{12} = 30, 000$
	Total	Rs 30,000

2015-16	M1	$= 3, 00, 000 \times \frac{20}{100} = 60, 000$
	M2	$= 1, 00, 000 \times \frac{20}{100} = 20, 000$
	Total	Rs 80,000

2016-17	Sold Machinery	$= 1, 00, 000 \times \frac{20}{100} \times \frac{6}{12} = 10, 000$
	M1	$= 2, 00, 000 \times \frac{20}{100} = 40, 000$
	M2	$= 1, 00, 000 \times \frac{20}{100} = 20, 000$
	M3	$= 50, 000 \times \frac{20}{100} \times \frac{6}{12} = 5, 000$
	Total	Rs 75,000

Double Entry Book Keeping Ts Grewal 2017 Solutions for Class 11 Commerce Accountancy Chapter 10 - Depreciation

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Question 1:

Answer:

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Question 2:

Answer:

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Question 3:

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Question 4:

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Question 5:

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Question 6:

Answer:

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Question 7:

Answer:

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Question 8:

Answer:

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Question 9:

Answer:

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Question 10:

Answer:

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Question 11:

Answer:

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Question 12:

Answer:

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Question 13:

Answer:

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Question 14:

Answer:

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Question 15:

Answer:

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Question 16:

Answer:

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Question 17:

Answer:

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Question 18:

Answer:

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Question 19:

Answer:

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Question 20:

Answer:

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Question 21:

Answer:

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Question 22:

Answer:

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Question 23:

Answer:

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Question 24:

Answer:

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Question 25:

Answer:

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Question 26:

Answer:

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