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Page No 14.31:

Question 1:

Answer:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2013

 

 

2014

 

 

Apr. 01

Bank A/c

21,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

19,000

 

 

21,000

 

 

21,000

2014

 

 

2015

 

 

Apr. 01

Balance b/d

19,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

17,000

 

 

19,000

 

 

19,000

2015

 

 

2016

 

 

Apr. 01

Balance b/d

17,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

15,000

 

 

 

 

 

 

 

 

17,000

 

 

17,000

 

 

 

 

 

 

Working Notes:

1. Calculation of Depreciation

Page No 14.31:

Question 2:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2013

 

 

2014

 

 

Apr. 01

Bank A/c

21,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

19,000

 

 

21,000

 

 

21,000

2014

 

 

2015

 

 

Apr. 01

Balance b/d

19,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

17,000

 

 

19,000

 

 

19,000

2015

 

 

2016

 

 

Apr. 01

Balance b/d

17,000

Mar. 31

Depreciation A/c

2,000

 

 

 

Mar. 31

Balance c/d

15,000

 

 

 

 

 

 

 

 

17,000

 

 

17,000

 

 

 

 

 

 

Working Notes:

1. Calculation of Depreciation

Answer:

Book of Shri Ram

Machinery Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2014

 

 

 

April 01

Bank

 

40,000

Mar. 31

Depreciation

 

4,000

April 01

Bank (Erection Expense)

 

5,000

Mar. 31

Balance c/d

 

41,000

 

 

 

45,000

 

 

 

45,000

2014

 

 

 

2015

 

 

 

April 01

Balance b/d

 

41,000

Mar. 31

Depreciation

 

4,000

 

 

 

 

Mar. 31

Balance c/d

 

37,000

 

 

 

41,000

 

 

 

41,000

2015

 

 

 

2016

 

 

 

April 01

Balance b/d

 

37,000

Mar. 31

Depreciation

 

4,000

 

 

 

 

Mar. 31

Balance c/d

 

33,000

 

 

 

37,000

 

 

 

37,000

 

 

 

 

 

 

 

 

Calculation of Depreciation

Page No 14.31:

Question 3:

Book of Shri Ram

Machinery Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2014

 

 

 

April 01

Bank

 

40,000

Mar. 31

Depreciation

 

4,000

April 01

Bank (Erection Expense)

 

5,000

Mar. 31

Balance c/d

 

41,000

 

 

 

45,000

 

 

 

45,000

2014

 

 

 

2015

 

 

 

April 01

Balance b/d

 

41,000

Mar. 31

Depreciation

 

4,000

 

 

 

 

Mar. 31

Balance c/d

 

37,000

 

 

 

41,000

 

 

 

41,000

2015

 

 

 

2016

 

 

 

April 01

Balance b/d

 

37,000

Mar. 31

Depreciation

 

4,000

 

 

 

 

Mar. 31

Balance c/d

 

33,000

 

 

 

37,000

 

 

 

37,000

 

 

 

 

 

 

 

 

Calculation of Depreciation

Answer:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2012

 

 

2013

 

 

Apr. 01

Bank A/c

3,30,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

2,55,000

 

 

3,30,000

 

 

3,30,000

2013

 

 

2014

 

 

Apr. 01

Balance b/d

2,55,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

1,80,000

 

 

2,55,000

 

 

2,55,000

2014

 

 

2015

 

 

Apr. 01

Balance b/d

1,80,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

1,05,000

 

 

 

 

 

 

 

 

1,80,000

 

 

1,80,000

2015

 

 

2016

 

 

Apr. 01

Balance b/d

1,05,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

30,000

 

 

1,05,000

 

 

1,05,000

 

 

 

 

 

 

Working Notes:

1. Calculation of Amount of Depreciation

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

Page No 14.31:

Question 4:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2012

 

 

2013

 

 

Apr. 01

Bank A/c

3,30,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

2,55,000

 

 

3,30,000

 

 

3,30,000

2013

 

 

2014

 

 

Apr. 01

Balance b/d

2,55,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

1,80,000

 

 

2,55,000

 

 

2,55,000

2014

 

 

2015

 

 

Apr. 01

Balance b/d

1,80,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

1,05,000

 

 

 

 

 

 

 

 

1,80,000

 

 

1,80,000

2015

 

 

2016

 

 

Apr. 01

Balance b/d

1,05,000

Mar. 31

Depreciation A/c

75,000

 

 

 

Mar. 31

Balance c/d

30,000

 

 

1,05,000

 

 

1,05,000

 

 

 

 

 

 

Working Notes:

1. Calculation of Amount of Depreciation

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

Answer:

Furniture Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2009

 

 

 

2009

 

 

 

Jan. 01

Bank (F1)

 

55,000

Dec. 31

Depreciation (F1)

 

5,000

 

 

 

 

Dec. 31

Balance c/d (F1)

 

50,000

 

 

 

55,000

 

 

 

55,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (F1)

 

50,000

Dec. 31

Depreciation

 

 

Jan. 01

Bank (F2)

 

9,500

 

F1

5,000

 

 

 

 

 

 

 

F2

900

 

5,900

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

45,000

 

 

 

 

 

 

 

F2

8,600

 

53,600

 

 

 

59,500

 

 

 

59,500

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

F1

45,000

 

 

 

F1

5,000

 

 

 

F2

8,600

 

53,600

 

F2

900

 

5,900

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

40,000

 

 

 

 

 

 

 

F2

7,700

 

47,700

 

 

 

53,600

 

 

 

53,600

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

F1

40,000

 

 

 

F1

5,000

 

 

 

F2

7,700

 

47,700

 

F2

900

 

 

July 01

Bank (F3)

 

8,400

 

F3

400

 

6,300

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

35,000

 

 

 

 

 

 

 

F2

6,800

 

 

 

 

 

 

 

F3

8,000

 

49,800

 

 

 

56,100

 

 

 

56,100

 

 

 

 

 

 

 

 

Working Notes:



Page No 14.32:

Question 5:

Furniture Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2009

 

 

 

2009

 

 

 

Jan. 01

Bank (F1)

 

55,000

Dec. 31

Depreciation (F1)

 

5,000

 

 

 

 

Dec. 31

Balance c/d (F1)

 

50,000

 

 

 

55,000

 

 

 

55,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (F1)

 

50,000

Dec. 31

Depreciation

 

 

Jan. 01

Bank (F2)

 

9,500

 

F1

5,000

 

 

 

 

 

 

 

F2

900

 

5,900

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

45,000

 

 

 

 

 

 

 

F2

8,600

 

53,600

 

 

 

59,500

 

 

 

59,500

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

F1

45,000

 

 

 

F1

5,000

 

 

 

F2

8,600

 

53,600

 

F2

900

 

5,900

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

40,000

 

 

 

 

 

 

 

F2

7,700

 

47,700

 

 

 

53,600

 

 

 

53,600

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

F1

40,000

 

 

 

F1

5,000

 

 

 

F2

7,700

 

47,700

 

F2

900

 

 

July 01

Bank (F3)

 

8,400

 

F3

400

 

6,300

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

F1

35,000

 

 

 

 

 

 

 

F2

6,800

 

 

 

 

 

 

 

F3

8,000

 

49,800

 

 

 

56,100

 

 

 

56,100

 

 

 

 

 

 

 

 

Working Notes:

Answer:

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

There are two ways of doing such a question. 

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

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

The first way is given below:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

Jan. 01

Bank (M1)

 

2,50,000

Dec. 31

Depreciation

 

 

July 01

Bank (M2)

 

1,00,000

 

M1

12,500

 

 

 

 

 

 

 

M2 (for 6 Months)

2,500

 

15,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M1

2,37,500

 

 

 

 

 

 

 

M2

97,500

 

3,35,000

 

 

 

3,50,000

 

 

 

3,50,000

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

M1

2,37,500

 

 

 

M1

12,500

 

 

 

M2

97,500

 

3,35,000

 

M2

5,000

 

17,500

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M1

2,25,000

 

 

 

 

 

 

 

M2

92,500

 

3,17,500

 

 

 

3,35,000

 

 

 

3,35,000

2012

 

 

 

2012

 

 

 

Jan. 01

Balance b/d

 

 

July 01

Depreciation (for 6 months)

 

6,250

 

M1

2,25,000

 

 

July 01

Bank (M1 sold)

 

1,43,000

 

M2

92,500

 

3,17,500

July 01

Profit and Loss (loss on sale)

 

75,750

July 01

Bank (M3)

 

2,00,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

M2

5,000

 

 

 

 

 

 

 

M3(for 6 months)

5,000

 

10,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M2

87,500

 

 

 

 

 

 

 

M3

1,95,000

 

2,82,500

 

 

 

5,17,500

 

 

 

5,17,500

2012

 

 

 

2013

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

M2

87,500

 

 

 

M2

5,000

 

 

 

M3

1,95,000

 

2,82,500

 

M3

10,000

 

15,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M2

82,500

 

 

 

 

 

 

 

M3

1,85,000

 

2,67,500

 

 

 

2,82,500

 

 

 

2,82,500

 

 

 

 

 

 

 

 

 

Working Notes:

1. Calculation of Deprecation  

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

Particulars

Amount

(Rs)

Book Value on Jan 01, 2008

2,25,000

Less: Deprecation for six month

(6,250)

Book Value on July 01, 2008

2,18,750

Less: Sale Proceeds

(1,43,000)

Loss on Sale of Machine

75,750

 

The second way of answering this question is: 

 

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

Jan.01

Bank (M1)

 

2,50,000

Dec.31

Depreciation

 

 

July 01

Bank (M2)

 

1,00,000

 

M1

12,500

 

 

 

 

 

 

 

M2 (6 Months)

5,000

 

17,500

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

2,37,500

 

 

 

 

 

 

 

M2

95,000

 

3,32,500

 

 

 

3,50,000

 

 

 

3,50,000

2011

 

 

 

2011

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

M1

2,37,500

 

 

 

M1

12,500

 

 

 

M2

95,000

 

3,32,500

 

M2

5,000

 

17,500

 

 

 

 

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

2,25,000

 

 

 

 

 

 

 

M2

90,000

 

3,15,000

 

 

 

3,32,500

 

 

 

3,32,500

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

July 01

Depreciation (for 6 months)

 

6,250

 

M1

2,25,000

 

 

July 01

Bank (M1 sold)

 

1,43,000

 

M2

90,000

 

3,15,000

July 01

Profit and Loss (loss on sale)

 

75,750

July 01

Bank (M3)

 

2,00,000

Dec.31

Depreciation

 

 

 

 

 

 

 

M2

5,000

 

 

 

 

 

 

 

M3

10,000

 

15,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M2

85,000

 

 

 

 

 

 

 

M3

1,90,000

 

2,75,000

 

 

 

5,15,000

 

 

 

5,15,000

2013

 

 

 

2013

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

M2

85,000

 

 

 

M2

5,000

 

 

 

M3

1,90,000

 

2,75,000

 

M3

10,000

 

15,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M2

80,000

 

 

 

 

 

 

 

M3

1,80,000

 

2,60,000

 

 

 

2,75,000

 

 

 

2,75,000

 

 

 

 

 

 

     

 

Working Notes:

1. Calculation of Deprecation  

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

Particulars

Amount

(Rs)

Book Value on Jan 01, 2008

2,25,000

Less: Deprecation for six month

(6,250)

Book Value on July 01, 2008

2,18,750

Less: Sale Proceeds

(1,43,000)

Loss on Sale of Machine

75,750

 

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

Page No 14.32:

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)

2010

 

 

 

2010

 

 

 

Jan. 01

Bank (M1)

 

2,50,000

Dec. 31

Depreciation

 

 

July 01

Bank (M2)

 

1,00,000

 

M1

12,500

 

 

 

 

 

 

 

M2 (for 6 Months)

2,500

 

15,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M1

2,37,500

 

 

 

 

 

 

 

M2

97,500

 

3,35,000

 

 

 

3,50,000

 

 

 

3,50,000

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

M1

2,37,500

 

 

 

M1

12,500

 

 

 

M2

97,500

 

3,35,000

 

M2

5,000

 

17,500

 

 

 

 

 

 

 

 

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M1

2,25,000

 

 

 

 

 

 

 

M2

92,500

 

3,17,500

 

 

 

3,35,000

 

 

 

3,35,000

2012

 

 

 

2012

 

 

 

Jan. 01

Balance b/d

 

 

July 01

Depreciation (for 6 months)

 

6,250

 

M1

2,25,000

 

 

July 01

Bank (M1 sold)

 

1,43,000

 

M2

92,500

 

3,17,500

July 01

Profit and Loss (loss on sale)

 

75,750

July 01

Bank (M3)

 

2,00,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

M2

5,000

 

 

 

 

 

 

 

M3(for 6 months)

5,000

 

10,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M2

87,500

 

 

 

 

 

 

 

M3

1,95,000

 

2,82,500

 

 

 

5,17,500

 

 

 

5,17,500

2012

 

 

 

2013

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

M2

87,500

 

 

 

M2

5,000

 

 

 

M3

1,95,000

 

2,82,500

 

M3

10,000

 

15,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

M2

82,500

 

 

 

 

 

 

 

M3

1,85,000

 

2,67,500

 

 

 

2,82,500

 

 

 

2,82,500

 

 

 

 

 

 

 

 

 

Working Notes:

1. Calculation of Deprecation  

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

Particulars

Amount

(Rs)

Book Value on Jan 01, 2008

2,25,000

Less: Deprecation for six month

(6,250)

Book Value on July 01, 2008

2,18,750

Less: Sale Proceeds

(1,43,000)

Loss on Sale of Machine

75,750

 

The second way of answering this question is: 

 

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

Jan.01

Bank (M1)

 

2,50,000

Dec.31

Depreciation

 

 

July 01

Bank (M2)

 

1,00,000

 

M1

12,500

 

 

 

 

 

 

 

M2 (6 Months)

5,000

 

17,500

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

2,37,500

 

 

 

 

 

 

 

M2

95,000

 

3,32,500

 

 

 

3,50,000

 

 

 

3,50,000

2011

 

 

 

2011

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

M1

2,37,500

 

 

 

M1

12,500

 

 

 

M2

95,000

 

3,32,500

 

M2

5,000

 

17,500

 

 

 

 

 

 

 

 

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

2,25,000

 

 

 

 

 

 

 

M2

90,000

 

3,15,000

 

 

 

3,32,500

 

 

 

3,32,500

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

July 01

Depreciation (for 6 months)

 

6,250

 

M1

2,25,000

 

 

July 01

Bank (M1 sold)

 

1,43,000

 

M2

90,000

 

3,15,000

July 01

Profit and Loss (loss on sale)

 

75,750

July 01

Bank (M3)

 

2,00,000

Dec.31

Depreciation

 

 

 

 

 

 

 

M2

5,000

 

 

 

 

 

 

 

M3

10,000

 

15,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M2

85,000

 

 

 

 

 

 

 

M3

1,90,000

 

2,75,000

 

 

 

5,15,000

 

 

 

5,15,000

2013

 

 

 

2013

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

M2

85,000

 

 

 

M2

5,000

 

 

 

M3

1,90,000

 

2,75,000

 

M3

10,000

 

15,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M2

80,000

 

 

 

 

 

 

 

M3

1,80,000

 

2,60,000

 

 

 

2,75,000

 

 

 

2,75,000

 

 

 

 

 

 

     

 

Working Notes:

1. Calculation of Deprecation  

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

Particulars

Amount

(Rs)

Book Value on Jan 01, 2008

2,25,000

Less: Deprecation for six month

(6,250)

Book Value on July 01, 2008

2,18,750

Less: Sale Proceeds

(1,43,000)

Loss on Sale of Machine

75,750

 

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

Answer:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2014

 

 

 

2015

 

 

 

Apr. 01

Bank A/c (M1)
(40,000 + 10,000)

 

50,000

Mar. 31

Depreciation A/c

 

 

Sept. 30

Bank A/c (M2)

 

20,000

 

M1

5,000

 

 

 

 

 

 

 

M2 (for 6 months)

1,000

 

6,000

 

 

 

 

Mar. 31

Balance c/d

 

 

 

 

 

 

 

M1

45,000

 

 

 

 

 

 

 

M2 (for 6 months)

19,000

 

64,000

 

 

 

70,000

 

 

 

70,000

 

 

 

 

 

 

 

 

Note:

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

Page No 14.32:

Question 7:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2014

 

 

 

2015

 

 

 

Apr. 01

Bank A/c (M1)
(40,000 + 10,000)

 

50,000

Mar. 31

Depreciation A/c

 

 

Sept. 30

Bank A/c (M2)

 

20,000

 

M1

5,000

 

 

 

 

 

 

 

M2 (for 6 months)

1,000

 

6,000

 

 

 

 

Mar. 31

Balance c/d

 

 

 

 

 

 

 

M1

45,000

 

 

 

 

 

 

 

M2 (for 6 months)

19,000

 

64,000

 

 

 

70,000

 

 

 

70,000

 

 

 

 

 

 

 

 

Note:

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

Answer:

Maruti Van Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2009

 

 

 

2009

 

 

 

Jan. 01

Bank A/c (I)

 

65,000

Dec. 31

Depreciation A/c (I)

 

6,500

 

 

 

 

Dec. 31

Balance c/d (I)

 

58,500

 

 

 

65,000

 

 

 

65,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (I)

 

58,500

Dec. 31

Depreciation A/c

 

 

July 01

Bank A/c (II)

 

70,000

 

(I)

6,500

 

 

 

 

 

 

 

(II) (for 6 month)

3,500

 

10,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

(I)

52,000

 

 

 

 

 

 

 

(II)

66,500

 

1,18,500

 

 

 

1,28,500

 

 

 

1,28,500

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Jan. 01

Bank A/c (I)

 

45,000

 

(I)

52,000

 

 

Jan. 01

Profit and Loss A/c (Loss on Sale)

 

7,000

 

(II)

66,500

 

1,18,500

Dec. 31

Depreciation A/c

 

 

Jan. 01

Bank A/c (III)

 

1,70,000

 

(II)

7,000

 

 

 

 

 

 

 

(III)

17,000

 

24,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

(II)

59,500

 

 

 

 

 

 

 

(III)

1,53,000

 

2,12,500

 

 

 

2,88,500

 

 

 

2,88,500

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Annual Depreciation

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

 

Particulars

Amount

(Rs)

Book Value on Jan 01, 2002

52,000

Less: sale of Maruti Van

(45,000)

Loss on sale of Maruti Van

7,000

 

Page No 14.32:

Question 8:

Maruti Van Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2009

 

 

 

2009

 

 

 

Jan. 01

Bank A/c (I)

 

65,000

Dec. 31

Depreciation A/c (I)

 

6,500

 

 

 

 

Dec. 31

Balance c/d (I)

 

58,500

 

 

 

65,000

 

 

 

65,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (I)

 

58,500

Dec. 31

Depreciation A/c

 

 

July 01

Bank A/c (II)

 

70,000

 

(I)

6,500

 

 

 

 

 

 

 

(II) (for 6 month)

3,500

 

10,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

(I)

52,000

 

 

 

 

 

 

 

(II)

66,500

 

1,18,500

 

 

 

1,28,500

 

 

 

1,28,500

2011

 

 

 

2011

 

 

 

Jan. 01

Balance b/d

 

 

Jan. 01

Bank A/c (I)

 

45,000

 

(I)

52,000

 

 

Jan. 01

Profit and Loss A/c (Loss on Sale)

 

7,000

 

(II)

66,500

 

1,18,500

Dec. 31

Depreciation A/c

 

 

Jan. 01

Bank A/c (III)

 

1,70,000

 

(II)

7,000

 

 

 

 

 

 

 

(III)

17,000

 

24,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

(II)

59,500

 

 

 

 

 

 

 

(III)

1,53,000

 

2,12,500

 

 

 

2,88,500

 

 

 

2,88,500

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Annual Depreciation

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

 

Particulars

Amount

(Rs)

Book Value on Jan 01, 2002

52,000

Less: sale of Maruti Van

(45,000)

Loss on sale of Maruti Van

7,000

 

Answer:

Books of Sohan Lal & Sons

Plant Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

April 01

Bank A/c (I)

 

60,000

Dec.31

Depreciation A/c

 

 

 

 

 

 

 

(I) for 9 months

4,500

 

 

 

 

 

 

 

(II) for 3 months

1,000

 

5,500

Oct.01

Bank A/c (II)

 

40,000

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

55,500

 

 

 

 

 

 

 

(II)

39,000

 

94,500

 

 

 

1,00,000

 

 

 

1,00,000

2011

 

 

 

2011

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation A/c

 

 

 

(I)

55,500

 

 

 

(I)

6,000

 

 

 

(II)

39,000

 

94,500

 

(II)

4,000

 

 

July 01

Bank A/c (III)

 

20,000

 

(III) for 6 months

1,000

 

11,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

49,500

 

 

 

 

 

 

 

(II)

35,000

 

 

 

 

 

 

 

(III)

19,000

 

1,03,500

 

 

 

1,14,500

 

 

 

1,14,500

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

Jan.01

Bank A/c

 

6,000

 

(I)

49,500

 

 

Jan.01

Profit and Loss A/c (loss)(16,500 – 6,000)

 

10,500

 

(II)

35,000

 

 

Dec.31

Depreciation A/c

 

 

 

(III)

19,000

 

1,03,500

 

(I)

4,000

 

 

 

 

 

 

 

(II)

4,000

 

 

 

 

 

 

 

(III)

2,000

 

10,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

29,000

 

 

 

 

 

 

 

(II)

31,000

 

 

 

 

 

 

 

(III)

17,000

 

77,000

 

 

 

1,03,500

 

 

 

1,03,500

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Depreciation

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

Particulars

Amount

(Rs)

1/3rd of Book Value of Plant I as on Jan.01, 2012( 49,500 × 1/3)

16,500

Less: Sale of Plant

(6,000)

Loss on Sale of Plant

10,500

 

Page No 14.32:

Question 9:

Books of Sohan Lal & Sons

Plant Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

April 01

Bank A/c (I)

 

60,000

Dec.31

Depreciation A/c

 

 

 

 

 

 

 

(I) for 9 months

4,500

 

 

 

 

 

 

 

(II) for 3 months

1,000

 

5,500

Oct.01

Bank A/c (II)

 

40,000

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

55,500

 

 

 

 

 

 

 

(II)

39,000

 

94,500

 

 

 

1,00,000

 

 

 

1,00,000

2011

 

 

 

2011

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation A/c

 

 

 

(I)

55,500

 

 

 

(I)

6,000

 

 

 

(II)

39,000

 

94,500

 

(II)

4,000

 

 

July 01

Bank A/c (III)

 

20,000

 

(III) for 6 months

1,000

 

11,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

49,500

 

 

 

 

 

 

 

(II)

35,000

 

 

 

 

 

 

 

(III)

19,000

 

1,03,500

 

 

 

1,14,500

 

 

 

1,14,500

2012

 

 

 

2012

 

 

 

Jan.01

Balance b/d

 

 

Jan.01

Bank A/c

 

6,000

 

(I)

49,500

 

 

Jan.01

Profit and Loss A/c (loss)(16,500 – 6,000)

 

10,500

 

(II)

35,000

 

 

Dec.31

Depreciation A/c

 

 

 

(III)

19,000

 

1,03,500

 

(I)

4,000

 

 

 

 

 

 

 

(II)

4,000

 

 

 

 

 

 

 

(III)

2,000

 

10,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

(I)

29,000

 

 

 

 

 

 

 

(II)

31,000

 

 

 

 

 

 

 

(III)

17,000

 

77,000

 

 

 

1,03,500

 

 

 

1,03,500

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Depreciation

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

Particulars

Amount

(Rs)

1/3rd of Book Value of Plant I as on Jan.01, 2012( 49,500 × 1/3)

16,500

Less: Sale of Plant

(6,000)

Loss on Sale of Plant

10,500

 

Answer:

​

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

Page No 14.32:

Question 10:

​

Books of A. Co. Ltd

Machinery

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2012

 

 

 

2013

 

 

 

July 01

Bank (I) (20,000 + 3,000)

 

23,000

Mar.31

Depreciation

 

 

2013

 

 

 

 

I (for 9 months)

1,725

 

 

Jan.01

Bank (II)

 

12,000

 

II (for 3 months)

300

 

2,025

 

 

 

 

Mar.31

Balance c/d

 

 

 

 

 

 

 

I

21,275

 

 

 

 

 

 

 

II

11,700

 

32,975

 

 

 

35,000

 

 

 

35,000

2013

 

 

 

2014

 

 

 

April 01

Balance b/d

 

 

Mar.31

Depreciation

 

 

 

I

21,275

 

 

 

I

2,300

 

 

 

II

11,700

 

32,975

 

II

1,200

 

3,500

 

 

 

 

Mar.31

Balance c/d

 

 

 

 

 

 

 

I

18,975

 

 

 

 

 

 

 

II

10,500

 

29,475

 

 

 

32,975

 

 

 

32,975

2014

 

 

 

2014

 

 

 

April 01

Balance b/d

 

 

June 30

Bank (II)

 

8,000

 

I

18,975

 

 

June 30

Depreciation (II) (for 3 months)

 

300

 

II

10,500

 

29,475

June 30

Profit and Loss (Loss)

 

2,200

July 01

Bank (III)

 

5,000

2015

 

 

 

July 01

Creditors for plant (III)

 

10,000

Mar.31

Depreciation

 

 

 

 

 

 

 

I

2,300

 

 

 

 

 

 

 

III (on 15,000 for 8 months)

1,125

 

3,425

 

 

 

 

 

Balance c/d

 

 

 

 

 

 

 

I

16,675

 

 

 

 

 

 

 

III

13,875

 

30,550

 

 

 

44,475

 

 

 

44,475

 

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Depreciation

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

 

Particulars

Amount (Rs)

Book Value of Machine (II) on April 01, 2007

10,500

Less: Depreciation for 3 Months

(300)

Book Value on June 30

10,200

Less: Sale

(8,000)

Loss on Sale

2,200

Answer:

Asset Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2007

 

 

 

2008

 

 

 

April 01

Bank

 

10,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

9,500

 

 

 

10,500

 

 

 

10,500

2008

 

 

 

2009

 

 

 

April 01

Balance b/d

 

9,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

8,500

 

 

 

9,500

 

 

 

9,500

2009

 

 

 

2010

 

 

 

April 01

Balance b/d

 

8,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

7,500

 

 

 

8,500

 

 

 

8,500

2010

 

 

 

2011

 

 

 

April 01

Balance b/d

 

7,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

6,500

 

 

 

7,500

 

 

 

7,500

2011

 

 

 

2012

 

 

 

April 01

Balance b/d

 

6,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

5,500

 

 

 

6,500

 

 

 

6,500

2012

 

 

 

2013

 

 

 

April 01

Balance b/d

 

5,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

4,500

 

 

 

5,500

 

 

 

5,500

2013

 

 

 

2014

 

 

 

April 01

Balance b/d

 

4,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Bank

 

600

 

 

 

 

Mar.31

Profit and Loss (Loss)

 

2,900

 

 

 

4,500

 

 

 

4,500

 

 

 

 

 

 

 

 

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

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

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

 

Page No 14.32:

Question 11:

Asset Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2007

 

 

 

2008

 

 

 

April 01

Bank

 

10,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

9,500

 

 

 

10,500

 

 

 

10,500

2008

 

 

 

2009

 

 

 

April 01

Balance b/d

 

9,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

8,500

 

 

 

9,500

 

 

 

9,500

2009

 

 

 

2010

 

 

 

April 01

Balance b/d

 

8,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

7,500

 

 

 

8,500

 

 

 

8,500

2010

 

 

 

2011

 

 

 

April 01

Balance b/d

 

7,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

6,500

 

 

 

7,500

 

 

 

7,500

2011

 

 

 

2012

 

 

 

April 01

Balance b/d

 

6,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

5,500

 

 

 

6,500

 

 

 

6,500

2012

 

 

 

2013

 

 

 

April 01

Balance b/d

 

5,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

4,500

 

 

 

5,500

 

 

 

5,500

2013

 

 

 

2014

 

 

 

April 01

Balance b/d

 

4,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Bank

 

600

 

 

 

 

Mar.31

Profit and Loss (Loss)

 

2,900

 

 

 

4,500

 

 

 

4,500

 

 

 

 

 

 

 

 

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

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

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

 

Answer:

Books of X

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2012

 

 

 

2012

 

 

 

Jan.01

Bank (I)

 

50,000

Dec.31

Depreciation (I)

 

5,000

 

 

 

 

Dec.31

Balance c/d

 

45,000

 

 

 

50,000

 

 

 

50,000

2013

 

 

 

2013

 

 

 

Jan.01

Balance b/d (I)

 

45,000

Dec.31

Depreciation

 

 

July 01

Bank (II)

 

10,000

 

I

5,000

 

 

 

 

 

 

 

II

500

 

5,500

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

I

40,000

 

 

 

 

 

 

 

II

9,500

 

49,500

 

 

 

55,000

 

 

 

55,000

2014

 

 

 

2014

 

 

 

        June 30 Depreciation (I of Rs 8,000)   400
        June 30 Bank   6,000

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

I

40,000

 

 

 

I  (42,000 × 10%)

4,200

 

 

 

II

9,500

 

49,500

 

II

1,000

 

 

April 01

Bank (III)

 

6,400

 

III

480

 

5,680

 

 

 

 

Dec.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, 2014=40,000 × 8,00050,000=6,400

Particulars

Amount (Rs)

Book Value on Jan 01, 2014

6,400

Less: Depreciation for 6 Months (8,000 × 10% × 6/12)

(400)

Book Value on June 31, 2014

6,000

Less: Sale

(6,000)

Profit on Sale

NIL

 



Page No 14.33:

Question 12:

Books of X

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2012

 

 

 

2012

 

 

 

Jan.01

Bank (I)

 

50,000

Dec.31

Depreciation (I)

 

5,000

 

 

 

 

Dec.31

Balance c/d

 

45,000

 

 

 

50,000

 

 

 

50,000

2013

 

 

 

2013

 

 

 

Jan.01

Balance b/d (I)

 

45,000

Dec.31

Depreciation

 

 

July 01

Bank (II)

 

10,000

 

I

5,000

 

 

 

 

 

 

 

II

500

 

5,500

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

I

40,000

 

 

 

 

 

 

 

II

9,500

 

49,500

 

 

 

55,000

 

 

 

55,000

2014

 

 

 

2014

 

 

 

        June 30 Depreciation (I of Rs 8,000)   400
        June 30 Bank   6,000

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

I

40,000

 

 

 

I  (42,000 × 10%)

4,200

 

 

 

II

9,500

 

49,500

 

II

1,000

 

 

April 01

Bank (III)

 

6,400

 

III

480

 

5,680

 

 

 

 

Dec.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, 2014=40,000 × 8,00050,000=6,400

Particulars

Amount (Rs)

Book Value on Jan 01, 2014

6,400

Less: Depreciation for 6 Months (8,000 × 10% × 6/12)

(400)

Book Value on June 31, 2014

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)

2009

 

 

 

 

 

May 01

Machinery A/c

Dr.

 

69,000

 

 

            To Bank A/c

 

 

 

69,000

 

(Purchased Machinery)

 

 

 

 

 

 

 

 

 

 

Dec. 31

Depreciation A/c

Dr.

 

16,600

 

 

            To Machinery A/c

 

 

 

16,600

 

(Depreciation charged on machinery)

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

 

 

June 01

Machinery A/c

Dr.

 

50,000

 

 

            To Bank A/c

 

 

 

50,000

 

(Purchased Machinery)

 

 

 

 

 

 

 

 

 

 

Dec. 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)

2009

 

 

2009

 

 

Jan. 01

Balance b/d (M1)

96,000

Dec. 31

Depreciation A/c

 

May 01

Bank A/c ( M2)

(60,000 + 9,000)

69,000

 

M1

12,000

 

 

 

 

 

M2 (for 8 months)

4,600

16,600

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

M1

84,000

 

 

 

 

 

M2

64,400

1,48,400

 

 

 

 

 

 

 

 

1,65,000

 

 

1,65,000

2010

 

 

2010

 

 

Jan. 01

Balance b/d

 

Dec. 31

Depreciation A/c

 

 

M1

84,000

 

 

M1

12,000

 

 

M2

64,400

1,48,400

 

M2

6,900

 

Aug. 01

Bank A/c (M3)

50,000

 

M3 (for 5 months)

2,083

20,983

 

 

 

Dec. 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

2009

-

2010

Note: Since Machinery started functioning from 1st August 2010, so depreciation is charged for 5 months only i.e. from 1st August to 31st December.

Page No 14.33:

Question 13:

Journal

In the Books of Mr. K. Gupta

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

2009

 

 

 

 

 

May 01

Machinery A/c

Dr.

 

69,000

 

 

            To Bank A/c

 

 

 

69,000

 

(Purchased Machinery)

 

 

 

 

 

 

 

 

 

 

Dec. 31

Depreciation A/c

Dr.

 

16,600

 

 

            To Machinery A/c

 

 

 

16,600

 

(Depreciation charged on machinery)

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

 

 

June 01

Machinery A/c

Dr.

 

50,000

 

 

            To Bank A/c

 

 

 

50,000

 

(Purchased Machinery)

 

 

 

 

 

 

 

 

 

 

Dec. 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)

2009

 

 

2009

 

 

Jan. 01

Balance b/d (M1)

96,000

Dec. 31

Depreciation A/c

 

May 01

Bank A/c ( M2)

(60,000 + 9,000)

69,000

 

M1

12,000

 

 

 

 

 

M2 (for 8 months)

4,600

16,600

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

M1

84,000

 

 

 

 

 

M2

64,400

1,48,400

 

 

 

 

 

 

 

 

1,65,000

 

 

1,65,000

2010

 

 

2010

 

 

Jan. 01

Balance b/d

 

Dec. 31

Depreciation A/c

 

 

M1

84,000

 

 

M1

12,000

 

 

M2

64,400

1,48,400

 

M2

6,900

 

Aug. 01

Bank A/c (M3)

50,000

 

M3 (for 5 months)

2,083

20,983

 

 

 

Dec. 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

2009

-

2010

Note: Since Machinery started functioning from 1st August 2010, so depreciation is charged for 5 months only i.e. from 1st August to 31st December.

Answer:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2014

 

 

 

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

2014

 

 

 

2015

 

 

 

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

2015

 

 

 

2015

 

 

 

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

2016

 

 

 

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

Mar. 31

Machinery A/c

 

20,000

Mar. 31

Profit and Loss A/c

 

20,000

 

 

 

20,000

 

 

 

20,000

2015

 

 

 

2015

 

 

 

Mar. 31

Machinery A/c

 

24,000

Mar. 31

Profit and Loss A/c

 

24,000

 

 

 

24,000

 

 

 

24,000

2015

 

 

 

2016

 

 

 

Oct.01

Machinery A/c

 

8,000

 

 

 

 

2016

 

 

 

 

 

 

 

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, 2015

1,28,000

Less: Depreciation for 6 Months

(8,000)

Book Value on Oct 01, 2015

1,20,000

Less: Sale Value

(1,04,000)

Loss on Sale

16,000

 

Page No 14.33:

Question 14:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2014

 

 

 

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

2014

 

 

 

2015

 

 

 

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

2015

 

 

 

2015

 

 

 

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

2016

 

 

 

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

Mar. 31

Machinery A/c

 

20,000

Mar. 31

Profit and Loss A/c

 

20,000

 

 

 

20,000

 

 

 

20,000

2015

 

 

 

2015

 

 

 

Mar. 31

Machinery A/c

 

24,000

Mar. 31

Profit and Loss A/c

 

24,000

 

 

 

24,000

 

 

 

24,000

2015

 

 

 

2016

 

 

 

Oct.01

Machinery A/c

 

8,000

 

 

 

 

2016

 

 

 

 

 

 

 

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, 2015

1,28,000

Less: Depreciation for 6 Months

(8,000)

Book Value on Oct 01, 2015

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)

2008

 

 

2008

 

 

Jan. 01

Bank A/c

(50,000 + 5,000)

55,000

Dec. 31

Depreciation A/c

10,000

 

 

 

Dec. 31

Balance c/d

45,000

 

 

55,000

 

 

55,000

2009

 

 

2009

 

 

Jan. 01

Balance b/d

45,000

Dec. 31

Depreciation A/c

10,000

 

 

 

Dec. 31

Balance c/d

35,000

 

 

45,000

 

 

45,000

2010

 

 

2010

 

 

Jan. 01

Balance b/d

35,000

Jan. 01

Bank A/c (Sale proceeds)

32,000

Jan. 01

Bank A/c

(25,000 + 1,000)

26,000

Jan. 01

Profit & Loss A/c (Loss on sale)

3,000

 

 

 

Dec. 31

Depreciation A/c

2,200

 

 

 

Dec. 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 Jan. 01, 2010

35,000

Less: Sale Value

32,000

Loss on Sale

3,000

 

 

 

Page No 14.33:

Question 15:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2008

 

 

2008

 

 

Jan. 01

Bank A/c

(50,000 + 5,000)

55,000

Dec. 31

Depreciation A/c

10,000

 

 

 

Dec. 31

Balance c/d

45,000

 

 

55,000

 

 

55,000

2009

 

 

2009

 

 

Jan. 01

Balance b/d

45,000

Dec. 31

Depreciation A/c

10,000

 

 

 

Dec. 31

Balance c/d

35,000

 

 

45,000

 

 

45,000

2010

 

 

2010

 

 

Jan. 01

Balance b/d

35,000

Jan. 01

Bank A/c (Sale proceeds)

32,000

Jan. 01

Bank A/c

(25,000 + 1,000)

26,000

Jan. 01

Profit & Loss A/c (Loss on sale)

3,000

 

 

 

Dec. 31

Depreciation A/c

2,200

 

 

 

Dec. 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 Jan. 01, 2010

35,000

Less: Sale Value

32,000

Loss on Sale

3,000

 

 

 

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

 

Page No 14.33:

Question 16:

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)

2014

 

 

 

2014

 

 

 

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

        2015      

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

Oct.01

Machinery

 

32,500

April 01

Balance b/d

 

2,25,000

2015

 

 

 

2015

 

 

 

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 2011 to Oct 01, 2014 (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

 

Page No 14.33:

Question 17:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2014

 

 

 

2014

 

 

 

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

        2015      

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

Oct.01

Machinery

 

32,500

April 01

Balance b/d

 

2,25,000

2015

 

 

 

2015

 

 

 

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 2011 to Oct 01, 2014 (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)

2014

 

 

 

2014

 

 

 

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

 

 

 

 

2015

 

 

 

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

April 01

Machinery

 

2,25,000

April 01

Balance b/d

 

8,00,000

2015

 

 

 

2015

 

 

 

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

 

Page No 14.33:

Question 18:

 

Books of Priyank Brothers

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2014

 

 

 

2014

 

 

 

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

 

 

 

 

2015

 

 

 

 

 

 

 

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)

2014

 

 

 

2014

 

 

 

April 01

Machinery

 

2,25,000

April 01

Balance b/d

 

8,00,000

2015

 

 

 

2015

 

 

 

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)

2013

 

 

2014

 

 

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

2014

 

 

2015

 

 

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

2015

 

 

2016

 

 

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)

2013

 

 

2014

 

 

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

2014

 

 

2015

 

 

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

2015

 

 

2016

 

 

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

2013-14

2014-15

2015-16

Depreciation

 

Page No 14.33:

Question 19:

Case 1: When Fixed Instalment Method is followed                        

Machinery Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2013

 

 

2014

 

 

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

2014

 

 

2015

 

 

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

2015

 

 

2016

 

 

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)

2013

 

 

2014

 

 

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

2014

 

 

2015

 

 

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

2015

 

 

2016

 

 

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

2013-14

2014-15

2015-16

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. =



Page No 14.34:

Question 20:

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

 

Page No 14.34:

Question 21:

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

 

 

 

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

 

 

 

1,00,000

II year

 

 

 

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

 

 

 

90,000

III year

 

 

 

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

 

 

 

81,000

IV year

 

 

 

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

 

 

 

72,900

V year

 

 

 

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

 

 

 

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 5th 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'.

Page No 14.34:

Question 22:

Machinery Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

I year

 

 

 

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

 

 

 

1,00,000

II year

 

 

 

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

 

 

 

90,000

III year

 

 

 

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

 

 

 

81,000

IV year

 

 

 

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

 

 

 

72,900

V year

 

 

 

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

 

 

 

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 5th 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)

2013

 

 

 

2014

 

 

 

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

2014

 

 

 

2014

 

 

 

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

        2015      

 

 

 

 

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, 2014

5,400

Less: Depreciation (for 6 Months)

(270)

Book Value of Machinery on Oct. 01, 2014

5,130

Less: Sale

(4,000)

Loss on Sale

1,130

 

Page No 14.34:

Question 23:

Books of Babu

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2014

 

 

 

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

2014

 

 

 

2014

 

 

 

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

        2015      

 

 

 

 

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, 2014

5,400

Less: Depreciation (for 6 Months)

(270)

Book Value of Machinery on Oct. 01, 2014

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

 

 

2013

 

 

Jan. 01

Bank A/c (M1)

20,000

Dec. 31

Depreciation A/c (M1)

2,000

 

 

 

Dec. 31

Balance c/d

18,000

 

 

20,000

 

 

20,000

2014

 

 

2014

 

 

Jan. 01

Balance b/d

18,000

Dec. 31

Depreciation A/c

 

July 01

Bank A/c (M2)

10,000

 

M1

1,800

 

 

 

 

 

M2

500

2,300

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

M1

16,200

 

 

 

 

 

M2

9,500

25,700

 

 

28,000

 

 

28,000

2015

 

 

2015

 

 

Jan. 01

Balance b/d

 

Dec. 31

Depreciation A/c

 

 

M1

16,200

 

 

M1

1,620

 

 

M2

9,500

25,700

 

M2

950

 

Jan. 01

Bank A/c (M3)

5,000

 

M3

500

3,070

 

 

 

 

Balance c/d

 

 

 

 

 

M1

14,580

 

 

 

 

 

M2

8,550

 

 

 

 

 

M3

4,500

27,630

 

 

30,700

 

 

30,700

 

 

 

 

 

 

 

Working Note:

WN1 Calculation of Depreciation

Years

Depreciation on M1

Depreciation on M2

Depreciation on M3

2013

-

-

2014

-

2015

 

Page No 14.34:

Question 24:

Machinery Account

Dr.

 

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2013

 

 

2013

 

 

Jan. 01

Bank A/c (M1)

20,000

Dec. 31

Depreciation A/c (M1)

2,000

 

 

 

Dec. 31

Balance c/d

18,000

 

 

20,000

 

 

20,000

2014

 

 

2014

 

 

Jan. 01

Balance b/d

18,000

Dec. 31

Depreciation A/c

 

July 01

Bank A/c (M2)

10,000

 

M1

1,800

 

 

 

 

 

M2

500

2,300

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

M1

16,200

 

 

 

 

 

M2

9,500

25,700

 

 

28,000

 

 

28,000

2015

 

 

2015

 

 

Jan. 01

Balance b/d

 

Dec. 31

Depreciation A/c

 

 

M1

16,200

 

 

M1

1,620

 

 

M2

9,500

25,700

 

M2

950

 

Jan. 01

Bank A/c (M3)

5,000

 

M3

500

3,070

 

 

 

 

Balance c/d

 

 

 

 

 

M1

14,580

 

 

 

 

 

M2

8,550

 

 

 

 

 

M3

4,500

27,630

 

 

30,700

 

 

30,700

 

 

 

 

 

 

 

Working Note:

WN1 Calculation of Depreciation

Years

Depreciation on M1

Depreciation on M2

Depreciation on M3

2013

-

-

2014

-

2015

 

Answer:

Books of Kaushal Traders

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2013

 

 

 

Jan. 01

Bank (23,000 + 2,000)

 

25,000

Dec. 31

Depreciation (25,000 × 20%)

 

5,000

 

 

 

 

Dec. 31

Balance c/d

 

20,000

 

 

 

25,000

 

 

 

25,000

2014

 

 

 

2014

 

 

 

Jan. 01

Balance b/d

 

20,000

Dec. 31

Depreciation (20,000 × 20%)

 

4,000

 

 

 

 

Dec. 31

Balance c/d

 

16,000

 

 

 

20,000

 

 

 

20,000

2015

 

 

 

2015

 

 

 

Jan. 01

Balance b/d

 

16,000

Dec. 31

Depreciation (16,000 × 20%)

 

3,200

 

 

 

 

Dec. 31

Bank

 

10,800

 

 

 

 

Dec. 31

Profit and Loss (Loss)

 

2,000

 

 

 

16,000

 

 

 

16,000

 

 

 

 

 

 

 

 

                   

 

Working Note:

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

 

Particulars

Amount

(Rs)

Book Value of machine on Jan. 01, 2015

16,000

Less: Depreciation for 2008 (16,000 × 20%)

(3,200)

Book Value of Machine on Dec. 31, 2015

12,800

Less: Sale Value

(10,800)

Loss on Sale

2,000

 

Page No 14.34:

Question 25:

Books of Kaushal Traders

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2013

 

 

 

2013

 

 

 

Jan. 01

Bank (23,000 + 2,000)

 

25,000

Dec. 31

Depreciation (25,000 × 20%)

 

5,000

 

 

 

 

Dec. 31

Balance c/d

 

20,000

 

 

 

25,000

 

 

 

25,000

2014

 

 

 

2014

 

 

 

Jan. 01

Balance b/d

 

20,000

Dec. 31

Depreciation (20,000 × 20%)

 

4,000

 

 

 

 

Dec. 31

Balance c/d

 

16,000

 

 

 

20,000

 

 

 

20,000

2015

 

 

 

2015

 

 

 

Jan. 01

Balance b/d

 

16,000

Dec. 31

Depreciation (16,000 × 20%)

 

3,200

 

 

 

 

Dec. 31

Bank

 

10,800

 

 

 

 

Dec. 31

Profit and Loss (Loss)

 

2,000

 

 

 

16,000

 

 

 

16,000

 

 

 

 

 

 

 

 

                   

 

Working Note:

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

 

Particulars

Amount

(Rs)

Book Value of machine on Jan. 01, 2015

16,000

Less: Depreciation for 2008 (16,000 × 20%)

(3,200)

Book Value of Machine on Dec. 31, 2015

12,800

Less: Sale Value

(10,800)

Loss on Sale

2,000

 

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

   

 

     

 

 

 

Page No 14.34:

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)

2012

 

 

2013

 

 

Apr. 01

Bank A/c (M1)

40,000

Mar. 31

Depreciation A/c

 

Oct. 01

Bank A/c (M2)

20,000

 

M1

4,000

 

2013

 

 

 

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

2013

 

 

2013

 

 

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

2014

 

 

 

 

 

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, 2013

19,000

Less: Depreciation for 3 months

475

Value of Machinery as on June 30, 2013

18,525

Less: Sale Value

15,000

Loss on Sale

3,525

 

 

 

Page No 14.34:

Question 27:

Machinery Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2012

 

 

2013

 

 

Apr. 01

Bank A/c (M1)

40,000

Mar. 31

Depreciation A/c

 

Oct. 01

Bank A/c (M2)

20,000

 

M1

4,000

 

2013

 

 

 

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

2013

 

 

2013

 

 

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

2014

 

 

 

 

 

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, 2013

19,000

Less: Depreciation for 3 months

475

Value of Machinery as on June 30, 2013

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)

2012

 

 

 

2012

 

 

 

July 01

Bank (I)

 

50,000

Dec. 31

Depreciation (for 6 Months)

 

3,750

 

 

 

 

Dec. 31

Balance c/d

 

46,250

 

 

 

50,000

 

 

 

50,000

2013

 

 

 

2013

 

 

 

Jan. 01

Balance b/d (I)

 

46,250

Dec. 31

Depreciation

 

 

Sep. 01

Bank (II)

 

10,000

 

I

6,938

 

 

 

 

 

 

 

II

500

 

7,438

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

I

39,312

 

 

 

 

 

 

 

II

9,500

 

48,812

 

 

 

56,250

 

 

 

56,250

2014

 

 

 

2014

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

I

39,312

 

 

 

I

5,897

 

 

 

II

9,500

 

48,812

 

II

1,425

 

7,322

 

 

 

 

Dec. 31

Bank (I)

 

28,415

 

 

 

 

Dec. 31

Profit and Loss (Loss)

 

5,000

 

 

 

 

Dec. 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 Jan. 01, 2014

39,312

Less: Depreciation (39,312 × 15%)

5,897

Book Value of Machine I on Dec. 31, 2014

33,415

Less: Sale Value

(28,415)

Loss on Sale of Machine I

5,000

 

Page No 14.34:

Question 28:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2012

 

 

 

2012

 

 

 

July 01

Bank (I)

 

50,000

Dec. 31

Depreciation (for 6 Months)

 

3,750

 

 

 

 

Dec. 31

Balance c/d

 

46,250

 

 

 

50,000

 

 

 

50,000

2013

 

 

 

2013

 

 

 

Jan. 01

Balance b/d (I)

 

46,250

Dec. 31

Depreciation

 

 

Sep. 01

Bank (II)

 

10,000

 

I

6,938

 

 

 

 

 

 

 

II

500

 

7,438

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

I

39,312

 

 

 

 

 

 

 

II

9,500

 

48,812

 

 

 

56,250

 

 

 

56,250

2014

 

 

 

2014

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

I

39,312

 

 

 

I

5,897

 

 

 

II

9,500

 

48,812

 

II

1,425

 

7,322

 

 

 

 

Dec. 31

Bank (I)

 

28,415

 

 

 

 

Dec. 31

Profit and Loss (Loss)

 

5,000

 

 

 

 

Dec. 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 Jan. 01, 2014

39,312

Less: Depreciation (39,312 × 15%)

5,897

Book Value of Machine I on Dec. 31, 2014

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)

2009

 

 

 

2009

 

 

 

Oct. 01

Bank (I)

 

4,00,000

Dec. 31

Depreciation (for 3 Months)

 

20,000

 

 

 

 

Dec. 31

Balance c/d (I)

 

3,80,000

 

 

 

4,00,000

 

 

 

4,00,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (I)

 

3,80,000

Dec. 31

Depreciation

 

76,000

 

 

 

 

Dec. 31

Balance c/d (I)

 

3,04,000

 

 

 

3,80,000

 

 

 

3,80,000

2011

 

 

 

2001

 

 

 

Jan.01

Balance b/d (I)

 

3,04,000

April 01

Depreciation (I) (for 3 Months)

 

15,200

April 01

Profit and Loss (profit)

 

11,200

April 01

Bank (Insurance Claim)

 

3,00,000

April 01

Bank (II)

 

5,00,000

Dec. 31

Depreciation(II) (for 9 Months)

 

75,000

 

 

 

 

Dec. 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 Jan.01, 2011

3,04,000

Less: Depreciation for 3 Months

(15,200)

Book Value of Truck I on April 01, 2011

2,88,800

Less: Insurance Claim Received

(3,00,000)

Profit

11,200

 

Page No 14.34:

Question 29:

Books of Sahara Transport Company 

Truck Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2009

 

 

 

2009

 

 

 

Oct. 01

Bank (I)

 

4,00,000

Dec. 31

Depreciation (for 3 Months)

 

20,000

 

 

 

 

Dec. 31

Balance c/d (I)

 

3,80,000

 

 

 

4,00,000

 

 

 

4,00,000

2010

 

 

 

2010

 

 

 

Jan. 01

Balance b/d (I)

 

3,80,000

Dec. 31

Depreciation

 

76,000

 

 

 

 

Dec. 31

Balance c/d (I)

 

3,04,000

 

 

 

3,80,000

 

 

 

3,80,000

2011

 

 

 

2001

 

 

 

Jan.01

Balance b/d (I)

 

3,04,000

April 01

Depreciation (I) (for 3 Months)

 

15,200

April 01

Profit and Loss (profit)

 

11,200

April 01

Bank (Insurance Claim)

 

3,00,000

April 01

Bank (II)

 

5,00,000

Dec. 31

Depreciation(II) (for 9 Months)

 

75,000

 

 

 

 

Dec. 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 Jan.01, 2011

3,04,000

Less: Depreciation for 3 Months

(15,200)

Book Value of Truck I on April 01, 2011

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)

2011

 

 

 

2012

 

 

 

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

2012

 

 

 

2013

 

 

 

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

2013

 

 

 

2013

 

 

 

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

2014       2014      

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, 2013

1,66,500

Less: Depreciation (for 6 Months)

(8,325)

Book Value on Oct. 01 2013

1,58,175

Less: Sale Value

(1,45,000)

Loss on Sale

13,175

 



Page No 14.35:

Question 30:

Book of Astha Engineering Works 

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2011

 

 

 

2012

 

 

 

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

2012

 

 

 

2013

 

 

 

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

2013

 

 

 

2013

 

 

 

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

2014       2014      

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, 2013

1,66,500

Less: Depreciation (for 6 Months)

(8,325)

Book Value on Oct. 01 2013

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)

2007

 

 

 

2007

 

 

 

Jan. 01

Bank (I)

 

6,00,000

Dec. 31

Depreciation

 

 

July 01

Bank (II)

 

2,00,000

 

I

60,000

 

 

 

 

 

 

 

II (for 6 months)

10,000

 

70,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I

5,40,000

 

 

 

 

 

 

 

II

1,90,000

 

7,30,000

 

 

 

8,00,000

 

 

 

 

8,00,000

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

I

5,40,000

 

 

 

I

54,000

 

 

 

II

1,90,000

 

7,30,000

 

II

19,000

 

73,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I

4,86,000

 

 

 

 

 

 

 

II

1,71,000

 

6,57,000

 

 

 

7,30,000

 

 

 

7,30,000

2009

 

 

 

2009

 

 

 

Jan. 01

Balance b/d

 

 

July 01

Depreciation (I)

 

24,300

 

I

4,86,000

 

 

July 01

Bank (I)

 

2,86,000

 

II

1,71,000

 

6,57,000

July 01

Profit and Loss (Loss)

 

1,75,700

July 01

Bank (III)

 

4,00,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

II

17,100

 

 

 

 

 

 

 

III (for 6 months)

20,000

 

37,100

 

 

 

 

Dec. 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 Jan. 01, 2009

4,86,000

Less: Depreciation (for 6 Months)

(24,300)

Book Value of Machine I on July 01, 2009

4,61,700

Less: Sale Value

(2,86,000)

Loss on Sale

1,75,700

 

Page No 14.35:

Question 31:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2007

 

 

 

2007

 

 

 

Jan. 01

Bank (I)

 

6,00,000

Dec. 31

Depreciation

 

 

July 01

Bank (II)

 

2,00,000

 

I

60,000

 

 

 

 

 

 

 

II (for 6 months)

10,000

 

70,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I

5,40,000

 

 

 

 

 

 

 

II

1,90,000

 

7,30,000

 

 

 

8,00,000

 

 

 

 

8,00,000

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 31

Depreciation

 

 

 

I

5,40,000

 

 

 

I

54,000

 

 

 

II

1,90,000

 

7,30,000

 

II

19,000

 

73,000

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I

4,86,000

 

 

 

 

 

 

 

II

1,71,000

 

6,57,000

 

 

 

7,30,000

 

 

 

7,30,000

2009

 

 

 

2009

 

 

 

Jan. 01

Balance b/d

 

 

July 01

Depreciation (I)

 

24,300

 

I

4,86,000

 

 

July 01

Bank (I)

 

2,86,000

 

II

1,71,000

 

6,57,000

July 01

Profit and Loss (Loss)

 

1,75,700

July 01

Bank (III)

 

4,00,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

II

17,100

 

 

 

 

 

 

 

III (for 6 months)

20,000

 

37,100

 

 

 

 

Dec. 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 Jan. 01, 2009

4,86,000

Less: Depreciation (for 6 Months)

(24,300)

Book Value of Machine I on July 01, 2009

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)

2007

 

 

 

2007

 

 

 

July 01

Bank

 

 

Dec. 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

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (3/4)

28,500

 

 

 

 

 

 

 

I (1/4)

9,500

 

38,000

 

 

 

40,000

 

 

 

40,000

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 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

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (3/4)

25,650

 

 

 

 

 

 

 

I (1/4)

8,550

 

34,200

 

 

 

38,000

 

 

 

 

38,000

2009

 

 

 

2009

 

 

 

Jan. 01

Balance b/d

 

 

Oct. 31

Depreciation I (1/4)(for 10 Months)

 

713

 

I (3/4)

25,650

 

 

Oct. 31

Bank (I) (1/4)

 

5,600

 

I (1/4)

8,550

 

34,200

Oct. 31

Profit and Loss (Loss on sale)

 

2,237

Oct. 31

Bank (II)

 

15,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

I (3/4)

2,565

 

 

 

 

 

 

 

II (for 2 months)

250

 

2,815

 

 

 

 

Dec. 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 Jan. 01, 2009

8,550

Less: Depreciation for 10 Months

(713)

Book Value of Machine (I)(1/4) on Oct. 31 2009

7,837

Less: Sale Value

(5,600)

Loss on Sale of Machine I (1/4)

2,237

 

Page No 14.35:

Question 32:

Machinery Account

Dr.

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2007

 

 

 

2007

 

 

 

July 01

Bank

 

 

Dec. 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

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (3/4)

28,500

 

 

 

 

 

 

 

I (1/4)

9,500

 

38,000

 

 

 

40,000

 

 

 

40,000

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 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

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (3/4)

25,650

 

 

 

 

 

 

 

I (1/4)

8,550

 

34,200

 

 

 

38,000

 

 

 

 

38,000

2009

 

 

 

2009

 

 

 

Jan. 01

Balance b/d

 

 

Oct. 31

Depreciation I (1/4)(for 10 Months)

 

713

 

I (3/4)

25,650

 

 

Oct. 31

Bank (I) (1/4)

 

5,600

 

I (1/4)

8,550

 

34,200

Oct. 31

Profit and Loss (Loss on sale)

 

2,237

Oct. 31

Bank (II)

 

15,000

Dec. 31

Depreciation

 

 

 

 

 

 

 

I (3/4)

2,565

 

 

 

 

 

 

 

II (for 2 months)

250

 

2,815

 

 

 

 

Dec. 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 Jan. 01, 2009

8,550

Less: Depreciation for 10 Months

(713)

Book Value of Machine (I)(1/4) on Oct. 31 2009

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)

2006

 

 

 

2006

 

 

 

April 01

Bank

 

 

Dec. 31

Depreciation

 

 

 

I (2/3)

20,000

 

 

 

I (2/3)

1,500

 

 

 

I (1/3)

10,000

 

30,000

 

I (1/3)

750

 

 

Oct. 01

Bank (II)

 

20,000

 

II

500

 

2,750

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (2/3)

18,500

 

 

 

 

 

 

 

I (1/3)

9,250

 

 

 

 

 

 

 

II

19,500

 

47,250

 

 

 

50,000

 

 

 

 

50,000

2007

 

 

 

2007

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 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

 

 

July 01

Bank (III)

 

10,000

 

III

500

 

5,225

 

 

 

 

Dec. 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

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Jan. 01

Bank (I)(1/3)

 

3,000

 

I (2/3)

16,650

 

 

Jan. 01

Profit and Loss (Loss)

 

5,325

 

I (1/3)

8,325

 

 

Dec. 31

Depreciation

 

 

 

II

17,550

 

 

 

I (2/3)

1,665

 

 

 

III

9,500

 

52,025

 

II

1,755

 

 

 

 

 

 

 

III

950

 

4,370

 

 

 

 

Dec. 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 Jan 01, 2008

8,325

Less: Sale Value

(3,000)

Loss on Sale

5,325

 

Page No 14.35:

Question 33:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2006

 

 

 

2006

 

 

 

April 01

Bank

 

 

Dec. 31

Depreciation

 

 

 

I (2/3)

20,000

 

 

 

I (2/3)

1,500

 

 

 

I (1/3)

10,000

 

30,000

 

I (1/3)

750

 

 

Oct. 01

Bank (II)

 

20,000

 

II

500

 

2,750

 

 

 

 

Dec. 31

Balance c/d

 

 

 

 

 

 

 

I (2/3)

18,500

 

 

 

 

 

 

 

I (1/3)

9,250

 

 

 

 

 

 

 

II

19,500

 

47,250

 

 

 

50,000

 

 

 

 

50,000

2007

 

 

 

2007

 

 

 

Jan. 01

Balance b/d

 

 

Dec. 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

 

 

July 01

Bank (III)

 

10,000

 

III

500

 

5,225

 

 

 

 

Dec. 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

2008

 

 

 

2008

 

 

 

Jan. 01

Balance b/d

 

 

Jan. 01

Bank (I)(1/3)

 

3,000

 

I (2/3)

16,650

 

 

Jan. 01

Profit and Loss (Loss)

 

5,325

 

I (1/3)

8,325

 

 

Dec. 31

Depreciation

 

 

 

II

17,550

 

 

 

I (2/3)

1,665

 

 

 

III

9,500

 

52,025

 

II

1,755

 

 

 

 

 

 

 

III

950

 

4,370

 

 

 

 

Dec. 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 Jan 01, 2008

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 on Jan.01, 2008:

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.



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