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Page No 13.43:

Answer:

 

Book of Shri Ram

Machinery Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2010

 

 

 

2011

 

 

 

April 01

Bank

 

40,000

Mar.31

Depreciation

 

4,000

April 01

Bank (Erection Expense)

 

5,000

 

Balance c/d

 

41,000

 

 

 

45,000

 

 

 

45,000

2011

 

 

 

2012

 

 

 

April 01

Balance b/d

 

41,000

Mar.31

Depreciation

 

4,000

 

 

 

 

 

Balance c/d

 

37,000

 

 

 

41,000

 

 

 

41,000

2012

 

 

 

2013

 

 

 

April 01

Balance b/d

 

37,000

Mar.31

Depreciation

 

4,000

 

 

 

 

 

Balance c/d

 

33,000

 

 

 

37,000

 

 

 

37,000

 

 

 

 

 

 

 

 

Calculation of Depreciation:

 



Page No 13.44:

Answer:

Furniture Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2005

 

 

 

2005

 

 

 

Jan.01

Bank (F1)

 

55,000

Dec.31

Depreciation (F1)

 

5,000

 

 

 

 

Dec.31

Balance c/d (F1)

 

50,000

 

 

 

55,000

 

 

 

55,000

2006

 

 

 

2006

 

 

 

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

2007

 

 

 

2007

 

 

 

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

2008

 

 

 

2008

 

 

 

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 13.44:

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)

2006

 

 

 

2006

 

 

 

Jan.01

Bank (M1)

 

2,50,000

Dec.31

Depreciation

 

 

July 01

Bank (M2)

 

1,00,000

 

M1

12,500

 

 

 

 

 

 

 

M2 (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

2007

 

 

 

2007

 

 

 

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

2008

 

 

 

2008

 

 

 

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

2009

 

 

 

2009

 

 

 

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)

2006

 

 

 

2006

 

 

 

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

2007

 

 

 

2007

 

 

 

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

2008

 

 

 

2008

 

 

 

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

2009

 

 

 

2009

 

 

 

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 13.44:

Answer:

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particular

J.F.

Amount

(Rs)

2010

 

 

 

2010

 

 

 

Jan.01

Bank (M1)

 

50,000

Dec.31

Depreciation

 

 

June 30

Bank (M2)

 

20,000

 

M1

5,000

 

 

 

 

 

 

 

M2 (6 months)

1,000

 

6,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

45,000

 

 

 

 

 

 

 

M2 (6 months)

19,000

 

64,000

 

 

 

70,000

 

 

 

70,000

 

 

 

 

 

 

 

 

Note: 

Repair and renewal made on September 30, 2010 will not be recorded in Machinery Account because, this repair was made after putting the Machinery in to use.

Page No 13.44:

Answer:

Asset Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

1999

 

 

 

2000

 

 

 

April 01

Bank

 

10,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

9,500

 

 

 

10,500

 

 

 

10,500

2000

 

 

 

2001

 

 

 

April 01

Balance b/d

 

9,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

8,500

 

 

 

9,500

 

 

 

9,500

2001

 

 

 

2002

 

 

 

April 01

Balance b/d

 

8,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

7,500

 

 

 

8,500

 

 

 

8,500

2002

 

 

 

2003

 

 

 

April 01

Balance b/d

 

7,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

6,500

 

 

 

7,500

 

 

 

7,500

2003

 

 

 

2004

 

 

 

April 01

Balance b/d

 

6,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

5,500

 

 

 

6,500

 

 

 

6,500

2004

 

 

 

2005

 

 

 

April 01

Balance b/d

 

5,500

Mar.31

Depreciation

 

1,000

 

 

 

 

Mar.31

Balance c/d

 

4,500

 

 

 

5,500

 

 

 

5,500

2005

 

 

 

2006

 

 

 

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, 2000 is Rs 1000

(ii) The Net Book Value of the asset on March 31, 2004 is Rs 5,500

(iii) Loss on Sale of the asset on March 31, 2006 is Rs 2,900

 

Page No 13.44:

Answer:

 

Maruti Van Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2000

 

 

 

2000

 

 

 

Jan.01

Bank (I)

 

65,000

Dec.31

Depreciation (I)

 

6,500

 

 

 

 

Dec.31

Balance c/d (I)

 

58,500

 

 

 

65,000

 

 

 

65,000

2001

 

 

 

2001

 

 

 

Jan.01

Balance b/d (I)

 

58,500

Dec.31

Depreciation

 

 

July 01

Bank (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

2002

 

 

 

2002

 

 

 

Jan.01

Balance b/d

 

 

Jan.01

Bank (I)

 

45,000

 

(I)

52,000

 

 

Jan.01

Profit and Loss (Loss on Sale)

 

7,000

 

(II)

66,500

 

1,18,500

Dec.31

Depreciation

 

 

Jan.01

Bank (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 13.44:

Answer:

 

Books of Modern Ltd.

Machinery Account 

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2003

 

 

 

2003

 

 

 

May 01

Bank (M1)

 

60,000

Dec.31

Depreciation

 

 

 

 

 

 

 

M1 (for 8 months)

 

8,000

 

 

 

 

Dec.31

Balance c/d

 

52,000

 

 

 

60,000

 

 

 

60,000

2004

 

 

 

2004

 

 

 

Jan.01

Balance b/d

 

52,000

Dec.31

Depreciation

 

 

July 01

Bank (M2)

 

20,000

 

M1

12,000

 

 

 

 

 

 

 

M2 (6 months)

2,000

 

14,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

M1

40,000

 

 

 

 

 

 

 

M2

18,000

 

58,000

 

 

 

72,000

 

 

 

72,000

2005

 

 

 

2005

 

 

 

Jan.01

Balance b/d

 

 

Mar.31

Depreciation (M1) (for 3 months)

 

3,000

 

M1

40,000

 

 

Mar.31

Bank (M1)

 

38,500

 

M2

18,000

 

58,000

Dec.31

Depreciation (M2)

 

4,000

Mar.31

Profit and Loss (profit)

 

1,500

Dec.31

Balance c/d

 

14,000

 

 

 

59,500

 

 

 

59,500

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of annual Depreciation

Particulars

Amount

(Rs)

Value on Jan 01, 2005

40,000

Depreciation for 3 Months

(3,000)

Value on March 31, 2005

37,000

Less: Sale of Machine

(38,500)

Profit on sale of Machine 1

1,500

 



Page No 13.45:

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 (I)

 

60,000

Dec.31

Depreciation

 

 

 

 

 

 

 

(I) for 9 months

4,500

 

 

 

 

 

 

 

(II) for 3 months

1,000

 

5,500

Oct.01

Bank (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

 

 

 

(I)

55,500

 

 

 

(I)

6,000

 

 

 

(II)

39,000

 

94,500

 

(II)

4,000

 

 

July 01

Bank (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

 

6,000

 

(I)

49,500

 

 

Jan.01

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

 

10,500

 

(II)

35,000

 

 

Dec.31

Depreciation

 

 

 

(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 13.45:

Answer:

 

Machinery Account

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2003

 

 

 

2003

 

 

 

April 01

Bank (I)

 

30,000

Dec.31

Depreciation

 

 

Oct.01

Bank (II)

 

20,000

 

I (for 9 months)

2,250

 

 

 

 

 

 

 

II

500

 

2,750

 

 

 

 

Dec.31

Balanced c/d

 

 

 

 

 

 

 

I

27,750

 

 

 

 

 

 

 

II

19,500

 

47,250

 

 

 

50,000

 

 

 

50,000

2004

 

 

 

2004

 

 

 

Jan.01

Balance b/d

 

 

Dec.31

Depreciation

 

 

 

I

27,750

 

 

 

I

3,000

 

 

 

II

19,500

 

47,250

 

II

2,000

 

 

 

 

 

 

 

III

500

 

5,500

July 01

Bank (III)

 

10,000

Dec.31

Balance c/d

 

 

 

 

 

 

 

I

24,750

 

 

 

 

 

 

 

II

17,500

 

 

 

 

 

 

 

III

9,500

 

51,750

 

 

 

57,250

 

 

 

57,250

2005

 

 

 

2005

 

 

 

Jan.01

Balance b/d

 

 

Jan.01

Bank I(1/3rd portion)

 

3,000

 

I

24,750

 

 

Jan.01

Profit and Loss (Loss on Sale of I)

 

5,250

 

II

17,500

 

 

Dec.31

Depreciation

 

 

 

III

9,500

 

51,750

 

I (on 2/3rd portion)

2,000

 

 

 

 

 

 

 

II

2,000

 

 

 

 

 

 

 

III

1,000

 

5,000

 

 

 

 

Dec.31

Balance c/d

 

 

 

 

 

 

 

I (on 2/3rd portion)

14,500

 

 

 

 

 

 

 

II

15,500

 

 

 

 

 

 

 

III

8,500

 

38,500

 

 

 

51,750

 

 

 

51,750

 

 

 

 

 

 

 

 

Working Notes

1. Calculation of Depreciation

 

Calculation of profit or loss on sale of 1/3rd Portion of Machine I

Particulars

Amount (Rs)

Book Value of 1/3rd portion of Machine I on Jan 01, 2005(24,750 × 1/3)

8,250

Less: Sale Value

(3,000)

Loss on sale

5,250

 

Page No 13.45:

Answer:

​

Books of A. Co. Ltd

Machinery

Dr.

 

Cr.

Date

Particulars

J.F.

Amount

(Rs)

Date

Particulars

J.F.

Amount

(Rs)

2005

 

 

 

2006

 

 

 

July 01

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

 

23,000

Mar.31

Depreciation

 

 

2006

 

 

 

 

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

2006

 

 

 

2007

 

 

 

April 01

Balance b/d

 

 

Mar.31

Depreciation

 

 

 

I

21,275

 

 

 

I

2,300

 

 

 

II

11,700

 

32,975