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Question 19 Chapter 11 – Unimax Publications of Class 11

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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/cCr.
DateParticularsJ.F.AmountDateParticularsJ.F.Amount
01/04/17To Bank A/c 6,00,00031/12/17By Deprecation A/c 70,000
01/07/17To Bank A/c 2,00,00031/12/17By Balance C/d 7,30,000
   8,00,000   8,00,000
01/01/18To Balance b/d 7,30,00031/12/18By Deprecation A/c 73,000
    31/12/18By Balance C/d 6,57,000
   7,30,000   7,30,000
01/01/19To Balance b/d 6,57,00031/10/19By Bank A/c 2,86,000
    31/10/19By Profit & Loss A/c 1,75,700
    31/10/19By Deprecation A/c 24,300
    31/12/19By Deprecation A/c 37,100
    31/12/19By Balance C/d 5,33,900
   10,57,000   10,57,000
Working Note: 
Original cost of machinery6,00,000
Less depreciations (60,000+54,000+24,300)1,38,300
Market value4,61,700
Sales value2,86,000
Loss on sale1,75,00

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