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Question 4 Chapter 11 – Unimax Publications of Class 11
A company purchases a plant for ₹ 31,000 on January 1,2019. If further spent ₹ 1400 on its installation. It was brought into use from 1st May,2019. You are required to prepare plant account and depreciation account for the first four years when rate of depreciation is 10% p.a. on straight line method.
The solution of Question 4 Chapter 11 – Unimax Publications of Class 11
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/01/16 | To Bank A/c | 31,000 | 31-12-2016 | By Deprecation A/c | 2,160 | ||
| 01/05/16 | To Bank A/c (installation cost) | 1,400 | 31-12-2016 | By Balance C/d | 30,240 | ||
| 32,400 | 32,400 | ||||||
| 01/01/17 | To Balance A/c | 30,240 | 31-12-2017 | By Deprecation A/c | 3,240 | ||
| 31-12-2017 | By Balance C/d | 27,000 | |||||
| 30,240 | 30,240 | ||||||
| 01/01/18 | To Balance b/d | 27,000 | 31-12-2018 | By Deprecation A/c | 240 | ||
| 31-12-2018 | By Balance C/d | 56,250 | |||||
| 27,216 | 27,216 | ||||||
| 01/01/19 | To Balance b/d | 23,760 | 31-12-2019 | By Deprecation A/c | 3,240 | ||
| 31-12-2019 | By Balance C/d | 20,520 | |||||
| 23,760 | 23,760 | ||||||
| Dr. | DepreciationA/c | Cr. | |||||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | ||
| 31/12/16 | To Machinery A/c | 2,160 | 31/12/16 | By Profit & Loss A/c | 2,160 | ||||
| 2,160 | 2,160 | ||||||||
| 31/12/16 | To Machinery A/c | 2,160 | 31/12/16 | By Profit & Loss A/c | 2,160 | ||||
| 2,160 | 2,160 | ||||||||
| 31/12/16 | To Machinery A/c | 2,160 | 31/12/16 | By Profit & Loss A/c | 2,160 | ||||
| 2,160 | 2,160 | ||||||||
| 31/12/16 | To Machinery A/c | 2,160 | 31/12/16 | By Profit & Loss A/c | 2,160 | ||||
| 2,160 | 2,160 | ||||||||
| 31/12/16 | To Machinery A/c | 2,160 | 31/12/16 | By Profit & Loss A/c | 2,160 | ||||
| 2,160 | 2,160 | ||||||||
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