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Question 19 Chapter 11 – Unimax Publications of Class 11
A firm purchased on 1st January, 2017 certain machinery for ₹ 5,82,000 and spent ₹ 10,8000 on its erection. On 1st July, 2017, additional machinery costing ₹ 2,00,000 was purchased. On 1st July,2019, the machinery purchased on 1st January, 2017 was auctioned for ₹ 2,86,000 and a fresh machinery for ₹ 4,00,000 was purchased on same date. Depreciation was provided annually on 31st December at the rate of 10% on written down value method. Prepare machinery account from 2017 to 2019.
The solution of Question 19 Chapter 11 – Unimax Publications of Class 11
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/04/17 | To Bank A/c | 6,00,000 | 31/12/17 | By Deprecation A/c | 70,000 | ||
| 01/07/17 | To Bank A/c | 2,00,000 | 31/12/17 | By Balance C/d | 7,30,000 | ||
| 8,00,000 | 8,00,000 | ||||||
| 01/01/18 | To Balance b/d | 7,30,000 | 31/12/18 | By Deprecation A/c | 73,000 | ||
| 31/12/18 | By Balance C/d | 6,57,000 | |||||
| 7,30,000 | 7,30,000 | ||||||
| 01/01/19 | To Balance b/d | 6,57,000 | 31/10/19 | By Bank A/c | 2,86,000 | ||
| 31/10/19 | By Profit & Loss A/c | 1,75,700 | |||||
| 31/10/19 | By Deprecation A/c | 24,300 | |||||
| 31/12/19 | By Deprecation A/c | 37,100 | |||||
| 31/12/19 | By Balance C/d | 5,33,900 | |||||
| 10,57,000 | 10,57,000 | ||||||
| Working Note: | |
| Original cost of machinery | 6,00,000 |
| Less depreciations (60,000+54,000+24,300) | 1,38,300 |
| Market value | 4,61,700 |
| Sales value | 2,86,000 |
| Loss on sale | 1,75,00 |
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