Question
9:
On 1st April, 2022, Harish traders purchased 5 machines for `60,000 each. On 1st
April, 2022, one of the machine was sold at a loss of `8,000. On 1st July, 2023, second
machine was sold at a loss of
`12,500. A new machine was purchased for
`1,00,000 on 1st October, 2023.
Prepare Machinery Account for 4 years, assuming accounts are closed on 31st
March each year and depreciation is charged @ 10% per annum as per Straight
Line Method.
Answer:
|
Dr. |
Machinery A/c |
Cr. |
|||||
|
Date |
Particulars |
(`) |
Date |
Particulars |
(`) |
||
|
2022 |
|
|
2023 |
|
|
||
|
April 01 |
To
Cash/Bank A/c (60,000 × 5) |
3,00,000 |
March 31 |
By
Depreciation A/c (3,00,000 × 10/100) |
30,000 |
||
|
|
|
|
March 31 |
By
balance c/d |
2,70,000 |
||
|
|
|
|
|
|
|
||
|
|
|
3,00,000 |
|
|
3,00,000 |
||
|
2023 |
|
|
2024 |
|
|
||
|
April 01 |
To
balance b/d |
2,70,000 |
March 31 |
By
Depreciation A/c (3,00,000 × 10/100) |
30,000 |
||
|
|
|
|
March 31 |
By
balance c/d |
2,40,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,70,000 |
|
|
2,70,000 |
||
|
2024 |
|
|
2024 |
|
|
||
|
April 01 |
To
balance b/d |
2,40,000 |
April 01 |
By
Bank A/c (WN1) |
40,000 |
||
|
|
|
|
April 01 |
By
Profit & Loss A/c (Loss on sale) |
8,000 |
||
|
|
|
|
2025 |
|
|
||
|
|
|
|
March 31 |
By
Depreciation A/c (2,40,000 × 10/100) |
24,000 |
||
|
|
|
|
|
(On
remaining machinery) |
|
||
|
|
|
|
March 31 |
By
balance c/d |
1,68,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,40,000 |
|
|
2,40,000 |
||
|
2025 |
|
|
2025 |
|
|
||
|
April 01 |
To
balance c/d |
1,68,000 |
July 1 |
By
Depreciation A/c (6,000 × 3/12) |
1,500 |
||
|
Oct.01 |
To
Cash/Bank A/c |
1,00,000 |
July 1 |
By
Bank A/c (WN2) |
28,000 |
||
|
|
|
|
July 1 |
By
Profit & Loss A/c (Loss on Sale) |
12,500 |
||
|
|
|
|
2026 |
|
|
||
|
|
|
|
March 31 |
By
Depreciation A/c (On remaining |
23,000 |
||
|
|
|
|
|
Machinery) |
|
||
|
|
|
|
|
[(1,80,000
× 10/100) + |
|
||
|
|
|
|
|
(1,00,000
× 10/100 × 6/12)] |
|
||
|
|
|
|
March 31 |
By
balance c/d |
2,03,000 |
||
|
|
|
|
|
|
|
||
|
|
|
2,68,000 |
|
|
2,68,000 |
||
|
|
|
|
|
|
|
||
Working Notes:
|
1)
Calculation of Sale proceeds from Machinery sold on 1st April,
2024 |
||
|
Book
Value of the Machine as on 1st April, 2024 |
= |
(Total
opening balance of Machinery on this date/5) |
|
|
= |
`(2,40,000/5)
= `48,000 |
|
Loss
on Sale of Machinery |
= |
`8,000 |
|
Sale
proceeds from the Machinery |
= |
Book
Value of the Machine as on 1st April, 2024 – Loss on Sale |
|
|
= |
`(48,000 – 8,000) = `40,000 |
|
|
|
|
|
2)
Calculation of Sale proceeds from Machinery sold on 1st July 2025 |
||
|
Book
Value of the Machine as on 1st July, 2025 |
= |
[(Total
opening balance of Machinery on this date/4-Depreciation] |
|
|
= |
`[(1,68,000/4)
– 1,500] = `40,500 |
|
Loss
on Sale of Machinery |
= |
`12,500 |
|
Sale
proceeds from the Machinery |
= |
Book
Value of the Machine as on 1st July, 2025 – Loss on Sale |
|
|
= |
`(40,500 – 12,500) = `28,000 |
Question 10:
On 1st April, 2020, Gurman toys purchased a machine for `2,40,000 and spent `10,000 on its
erection. On 1st October, 2020 an additional machinery costing `1,00,000 was
purchased. On 1st October, 2022, the machine purchased on 1st April, 2020 was
sold for `1,43,000
and on the same date, a new machine was purchased at cost of `2,00,000.
Show the Machinery Account for the first four financial years after charging
Depreciation at 5% p.a. by the Straight Line Method.
Answer:
Machinery
Account
|
Dr. |
|
Cr. |
||||||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
|||||
|
2020 |
|
|
|
2021 |
|
|
|
|||||
|
April 01 |
Bank (M1) |
|
2,50,000 |
March 31 |
Depreciation |
|
|
|||||
|
Oct. 01 |
Bank (M2) |
|
1,00,000 |
|
M1 |
12,500 |
|
|
||||
|
|
|
|
|
|
M2 (6 Months) |
2,500 |
|
15,000 |
||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M1 |
2,37,500 |
|
|
||||
|
|
|
|
|
|
M2 |
97,500 |
|
3,35,000 |
||||
|
|
|
|
3,50,000 |
|
|
|
3,50,000 |
|||||
|
2021 |
|
|
|
2022 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
March 31 |
Depreciation |
|
|
|||||
|
|
M1 |
2,37,500 |
|
|
|
M1 |
12,500 |
|
|
|||
|
|
M2 |
97,500 |
|
3,35,000 |
|
M2 |
5,000 |
|
17,500 |
|||
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M1 |
2,25,000 |
|
|
||||
|
|
|
|
|
|
M2 |
92,500 |
|
3,17,500 |
||||
|
|
|
|
3,35,000 |
|
|
|
3,35,000 |
|||||
|
2022 |
|
|
|
2022 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
Oct. 01 |
Depreciation
(for 6 months) |
|
6,250 |
|||||
|
|
M1 |
2,25,000 |
|
|
Oct. 01 |
Bank (M1 sold) |
|
1,43,000 |
||||
|
|
M2 |
92,500 |
|
3,17,500 |
Oct. 01 |
Profit and Loss
(loss on sale) |
|
75,750 |
||||
|
|
|
|
|
|
2023 |
|
|
|
||||
|
July 01 |
Bank (M3) |
|
2,00,000 |
March 31 |
Depreciation |
|
|
|||||
|
|
|
|
|
|
M2 |
5,000 |
|
|
||||
|
|
|
|
|
|
M3 (for 6 months) |
5,000 |
|
10,000 |
||||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M2 |
87,500 |
|
|
||||
|
|
|
|
|
|
M3 |
1,95,000 |
|
2,82,500 |
||||
|
|
|
|
5,17,500 |
|
|
|
5,17,500 |
|||||
|
2023 |
|
|
|
2024 |
|
|
|
|||||
|
April 01 |
Balance b/d |
|
|
March 31 |
Depreciation |
|
|
|||||
|
|
M2 |
87,500 |
|
|
|
M2 |
5,000 |
|
|
|||
|
|
M3 |
1,95,000 |
|
2,82,500 |
|
M3 |
10,000 |
|
15,000 |
|||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||||
|
|
|
|
|
|
M2 |
82,500 |
|
|
||||
|
|
|
|
|
|
M3 |
1,85,000 |
|
2,67,500 |
||||
|
|
|
|
2,82,500 |
|
|
|
2,82,500 |
|||||
|
|
|
|
|
|
|
|
|
|||||
Working Notes:
1. Calculation of Deprecation
Machine 1= 2,50,000×5/100= `12,500 p.a.
Machine 2= 1,00,000×5/100= `5,000 p.a.
Machine 3= 2,00,000×4/100= `10,000 p.a.
2. Calculation of profit or loss on sale of Machine
|
Particulars |
(`) |
|
Book Value on
April 01, 2022 |
2,25,000 |
|
Less: Deprecation for six
month |
(6,250) |
|
Book Value on
Oct. 01, 2022 |
2,18,750 |
|
Less: Sale Proceeds |
(1,43,000) |
|
Loss on Sale of
Machine |
75,750 |
Question 11:
A Van was purchased on 1st April, 2020 for `60,000 and `5,000 was spent on its repair and registration. On 1st October, 2021 another van was purchased for `70,000. On 1st April, 2022, the first van purchased on 1st April, 2020 was sold for `45,000 and a new van costing `1,70,000 was purchased on the same date. Show the Van Account from 2020-21 to 2022-23 on the basis of Straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year.
Answer:
|
Van
Account |
||||||||||
|
Dr. |
|
Cr. |
||||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
|||
|
2020 |
|
|
|
2021 |
|
|
|
|||
|
April 01 |
Bank A/c (I) |
|
65,000 |
March 31 |
Depreciation A/c
(I) |
|
6,500 |
|||
|
|
|
|
|
March 31 |
Balance c/d (I) |
|
58,500 |
|||
|
|
|
|
65,000 |
|
|
|
65,000 |
|||
|
2021 |
|
|
|
2022 |
|
|
|
|||
|
April 01 |
Balance b/d (I) |
|
58,500 |
March 31 |
Depreciation A/c |
|
|
|||
|
Oct. 01 |
Bank A/c (II) |
|
70,000 |
|
(I) |
6,500 |
|
|
||
|
|
|
|
|
|
(II) (for 6 month) |
3,500 |
|
10,000 |
||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||
|
|
|
|
|
|
(I) |
52,000 |
|
|
||
|
|
|
|
|
|
(II) |
66,500 |
|
1,18,500 |
||
|
|
|
|
1,28,500 |
|
|
|
1,28,500 |
|||
|
2022 |
|
|
|
2022 |
|
|
|
|||
|
April 01 |
Balance b/d |
|
|
April 01 |
Bank A/c (I) |
|
45,000 |
|||
|
|
(I) |
52,000 |
|
|
April 01 |
Profit and Loss
A/c (Loss on Sale) |
|
7,000 |
||
|
|
|
|
|
|
2023 |
|
|
|
||
|
|
(II) |
66,500 |
|
1,18,500 |
March 31 |
Depreciation A/c |
|
|
||
|
April 01 |
Bank A/c (III) |
|
1,70,000 |
|
(II) |
7,000 |
|
|
||
|
|
|
|
|
|
(III) |
17,000 |
|
24,000 |
||
|
|
|
|
|
March 31 |
Balance c/d |
|
|
|||
|
|
|
|
|
|
(II) |
59,500 |
|
|
||
|
|
|
|
|
|
(III) |
1,53,000 |
|
2,12,500 |
||
|
|
|
|
2,88,500 |
|
|
|
2,88,500 |
|||
|
|
|
|
|
|
|
|
|
|||
Working Notes
1. Calculation of Annual Depreciation
Maruti
Van (1) = 65,000×10/100= `6,500
Maruti
Van (1I) = 70,000×10/100= `7,000
Maruti Van (1II) =1,70,000×10/100= `17,000
2. Calculation of profit or loss on
sale of Van (I)
|
Particulars |
(`) |
|
Book Value on Apr. 01, 2022 |
52,000 |
|
Less: Sale of Van |
(45,000) |
|
Loss on Sale of
Van |
7,000 |
Question 12:
On 1st April, 2010, Plant and Machinery was purchased for `1,20,000. New machinery was purchased on 1st October, 2010 for `50,000 and on 1st July, 2011, for `25,000. On 1st January, 2013, a machinery of the original value of `20,000 which was included in the machinery purchased on 1st April, 2010, was sold for `6,000. Prepare Plant and Machinery A/c for three years after providing depreciation at 10% p.a. on Straight Line Method. Accounts are closed on 31st March every year. (KVS)
Answer
|
Machinery
Account |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Date |
Particulars |
J.F. |
(`) |
Date |
Particulars |
J.F. |
(`) |
||
|
2010 |
|
|
|
2011 |
|
|
|
||
|
April 01 |
Bank A/c (M1) |
|
1,20,000 |
Mar.31 |
Depreciation A/c |
|
|
||
|
Oct. 01 |
Bank A/c (M2) |
|
50,000 |
|
M1 – 12,000 |
|
|
||
|
|
|
|
|
|
(WN3) M2 – 2,500 |
|
14,500 |
||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||
|
|
|
|
|
|
M1 – 1,08,000 |
|
|
||
|
|
|
|
|
|
M2 –
47,500 |
|
1,55,500 |
||
|
|
|
|
1,70,000 |
|
|
|
1,70,000 |
||
|
2011 |
|
|
|
2012 |
|
|
|
||
|
April 01 |
Balance B/d |
|
|
Mar.31 |
Depreciation A/c |
|
|
||
|
|
M1 – 1,08,000 |
|
|
M1 – 12,000 |
|
|
|||
|
|
M2 –
47,500 |
1,55,500 |
|
M2 – 5,000 |
|
||||
|
|
|
|
|
|
(WN4) M3-1,875 |
|
18,875 |
||
|
July 01 |
Bank A/c (M3) |
|
25,000 |
Mar.31 |
Balance c/d |
|
|
||
|
2012 |
|
|
|
|
M1 – 96,000 |
|
|
||
|
|
|
|
|
|
M2 – 42,500 |
|
|
||
|
|
|
|
|
|
M3 –
23,125 |
|
1,61,625 |
||
|
|
|
|
1,80,500 |
|
|
|
1,80,500 |
||
|
2012 |
|
|
|
2013 |
|
|
|
||
|
Mar.31 |
Balance B/d |
|
|
Jan 1 |
Depreciation A/c (WN5) |
|
1,500 |
||
|
|
M1 – 96,000 |
|
Jan 1 |
Bank A/c (M1) |
|
6,000 |
|||
|
|
M2 – 42,500 |
|
|
Jan 1 |
Profit and loss A/c (Loss) |
|
8,500 |
||
|
|
M3 –
23,125 |
|
1,61,625 |
Mar.31 |
Depreciation A/c |
|
|
||
|
|
|
|
|
|
M1– 10,000 |
|
|
||
|
|
|
|
|
|
M2 – 5,000 |
|
|
||
|
|
|
|
|
|
M3 –
2,500 |
|
17,500 |
||
|
|
|
|
|
Mar.31 |
Balance c/d |
|
|
||
|
|
|
|
|
|
M1 – 70,000 |
|
|
||
|
|
|
|
|
|
M2 – 37,500 |
|
|
||
|
|
|
|
|
|
M3 –
20,625 |
|
1,28,125 |
||
|
|
|
|
1,61,625 |
|
|
|
1,61,625 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Working notes:
WN 1: Annual
depreciation @10% p. a.
Machinery 1 – 12,000 of 1,20,000
Machinery 2 – 5,000 of 50,000
Machinery 3 – 2,500 of 25,000
WN 2: First year
depreciation @10% p. a.
Machinery 1 – 12,000 of 1,20,000
Machinery 2 – 5,000 of 50,000 for 6 month is 2,500
WN3: Depreciation
(for 2nd Machinery)
(For 6 months) M2 – 2,500
Calculated as below
(1,20,000 ×10×6)÷(100×12) =2,500
WN4: Depreciation
(for 3rd Machinery)
(For
9 months) M3
-1,875
Calculated as below
(50,000 ×10×9)÷(100×12) =1,875
WN5: Depreciation
(for 1st machinery sold at time of sale)
(For Machinery, cost of 20,000 for 3 months)
Calculated as below
(25,000 ×10×3)÷(100×12) =1,500
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Ts Grewal Solution 2024-2025
Class 11th