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Question 13 Chapter 11 – Unimax Publications of Class 11
The original cost of machinery amount to ₹ 4,000 and it is decided to write off 5% on the Diminishing value of asset as depreciation at the end of each year.
Prepare the ledger account as it will appear during first four years.
The solution of Question 13 Chapter 11 – Unimax Publications of Class 11
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/01/20 | To Balance b/d | 20,000 | 31/12/20 | By Deprecation A/c | 2000 | ||
| 31/12/20 | By Balance C/d | 18,000 | |||||
| 20,000 | 20,000 | ||||||
| 01/01/21 | To Balance b/d | 18,000 | 31/12/21 | By Deprecation A/c | 2,300 | ||
| 01/07/21 | To Bank A/c | 10,000 | 31/12/21 | By Balance C/d | 25,700 | ||
| 28,000 | 28,000 | ||||||
| 01/01/22 | To Balance b/d | 25,700 | 31/12/22 | By Deprecation A/c | 3,070 | ||
| 01/01/22 | To Bank A/c | 5,000 | 31/12/22 | By Balance C/d | 27,630 | ||
| 30,700 | 30,700 | ||||||
Working Notes:
(1) Depreciation on machinery purchased on Jan.1,2017 dep. On Dec.31,2017 = ₹ 2,000.
Dep. On Dec. 31,2018 = ₹ 1,800
Dep. On Dec. 31,2019 = ₹ 1,620
(2) Depreciation on machinery purchased on July 1,2018:
Dep. On Dec. 31,2018 = ₹ 500
Dep. On Dec. 31,2019 = ₹ 950
(3) Depreciation on machinery purchased on Jan. 1,2019. Dep. On Jan. 1,2019 = ₹ 500
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