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Question 7 Chapter 12 – Class 11 Unimax
7. It is estimated by a company that it will require an additional sum of ₹ 3,00,000 after four years to replace its existing plant. It created a specific reserve for the replacement of its plant and appropriated ₹ 75,000 to this reserve each year on 31st March. New plant is purchased for ₹ 3,00,000 after four years. Give necessary journal entries and ledger accounts.
The solution of Question 7 Chapter 12 – Class 11 Unimax:
| Date | Particulars | L.F. | Debit | Credit | |
| 1st year | |||||
| Mar.31 | Profit & Loss appropriation A/c | Dr | 75,000 | ||
| To plant replacement reserve A/c | 75,000 | ||||
| (Being amount transferred to reserve a/c) | |||||
| 2nd year | |||||
| Mar.31 | Profit & Loss appropriation A/c | Dr | 75,000 | ||
| To plant replacement reserve A/c | 75,000 | ||||
| (Being amount transferred to reserve a/c) | |||||
| 3rd year | |||||
| Mar.31 | Profit & Loss appropriation A/c | Dr | 75,000 | ||
| To plant replacement reserve A/c | 75,000 | ||||
| (Being amount transferred to reserve a/c) | |||||
| 4th year | |||||
| Mar.31 | Profit & Loss appropriation A/c | Dr | 75,000 | ||
| To plant replacement reserve A/c | 75,000 | ||||
| (Being amount transferred to reserve a/c) | |||||
| Mar.31 | Plant A/c | Dr | 3,00,000 | ||
| To Bank A/c | 3,00,000 | ||||
| (Being new plant purchased) | |||||
| Mar.31 | Plant replacement reserve A/c | 3,00,000 | |||
| To General reserve A/c | 3,00,000 | ||||
| (Being balance of plant replacement reserve account transferred to general reserve A/c) | |||||
| Dr. | Plant replacement reserve A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 1st year | 1st year | ||||||
| Mar.31 | To Balance c/d | 75,000 | Mar.31 | By p & L A/c | 75,000 | ||
| 75,000 | 75,000 | ||||||
| 2nd year | 2nd year | ||||||
| Mar.31 | To Balance c/d | 1,50,000 | Apr.1 | By Balance b/d | 75,000 | ||
| Mar.31 | By P & L A/c | 75,000 | |||||
| 1,50,000 | 1,50,000 | ||||||
| 3rd year | 3rd year | ||||||
| Mar.31 | To Balance c/d | 2,50,000 | Apri.1 | By Balance b/d | 1,50,000 | ||
| Mar.31 | By P & L A/c | 75,000 | |||||
| 2,50,000 | 2,50,000 | ||||||
| 4th year | 4th year | ||||||
| Mar.31 | To General reserve A/c | 3,00,000 | Apr.1 | By Balance b/d | 2,25,000 | ||
| Mar.31 | By P & L A/c | 75,000 | |||||
| 3,00,000 | 3,00,000 | ||||||
| Dr | Bad debts A/c | Cr | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 4th year | |||||||
| Mar.31 | To Bank A/c | 3,00,000 | |||||
End of Solution
Check Out the Solution of all questions for this chapter:
The solutions to all questions of Chapter No. 12 – Provision and Reserves Unimax are shown as follows, click on the image of the question to get the solution.
Question 6 Chapter 12 – Class 11 Unimax
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1. Comprehensive Solutions for All Chapters of Advanced Accountancy I Class 11 by Unimax
UnimaxSolutions.in offers a comprehensive solution for students studying Advanced Accountancy I Part 1 in Class 11. With their meticulously curated study material, students can access comprehensive solutions to all the questions included within each chapter. By selecting the chapter name from the study material, students can easily navigate through the topics and find detailed explanations and step-by-step solutions to the problems presented in that section. Whether it’s understanding complex accounting concepts, mastering calculation techniques, or analyzing financial statements, Unimax provides a valuable resource to aid students in their learning journey. With these comprehensive solutions at their disposal, students can enhance their understanding, clarify doubts, and improve their problem-solving skills in Advanced Accountancy, ensuring they are well-prepared for their Class 11 examinations.
- Chapter No. 1 – Introduction of Accounting
- Chapter No. 2 – Theory Base of Accounting
- Chapter No. 3 – Vouchers and Transactions
- Chapter No. 4 – Journal
- Chapter No. 5 – Goods and Services Tax (GST): An Introduction
- Chapter No. 6 – Ledger
- Chapter No. 7 – Special Purpose Book – Cash Book
- Chapter No. 8 – Other Subsidiary Books
- Chapter No. 9 – Trial Balance
- Chapter No. 10 – Rectification of Errors
- Chapter No. 11 – Depreciation
- Chapter No. 12 – Provision and Reserves
- Chapter No. 13 – Bank Reconciliation Statement
- Chapter No. 14 – Bills of Exchange
- Chapter No. 15 – Financial Statements (Without Adjustments)
- Chapter No. 16 – Financial Statements (With Adjustments)
- Chapter No. 17 – Accounts from Incomplete Records – Single Entry System
2. Punjab School Education Board (PSEB) Solutions of Usha Publication.
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