Question 17:
The following balances appeared
in the books of Priyank Ltd. as on lst April, 2024:
Machinery A/c
|
₹10,00,000
|
Provision for Depreciation A/c
|
₹4,50,000
|
Depreciation is provided at 10%
per annum on the original cost on 3lst March every year.
On 1st October,
2024, a machine which was purchased on 1st December, 2021 for 1,20,000 was sold for 34,000.
Prepare
Machinery Account and Provision for Depreciation Account for the year 2024-25.
Answer:
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Books of Priyank Ltd. Machinery Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2024 |
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2024 |
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Apr.01 |
Balance b/d |
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10,00,000 |
Oct.1st |
Provision for Depreciation |
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34,000 |
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Oct.1st |
Bank |
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34,000 |
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Oct.1st |
Profit and Loss |
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52,000 |
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2024 |
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Mar.31 |
Balance c/d |
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8,80,000 |
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10,00,000 |
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10,00,000 |
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Provision for Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2024 |
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2023 |
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Oct.01 |
Machinery Account (Accumulated Dep. on Machine Sold) |
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34,000 |
Apr.01 |
Balance b/d |
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4,50,000 |
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2025 |
Balance c/d |
|
5,10,000 |
Oct.01 |
Deprection A/c |
6,000 |
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(for 6 Months) |
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2025 |
Depreciation (8,80,000 on @10%) |
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88,000 |
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5,44,000 |
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5,44,000 |
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Working Notes
(1) Calculation of Book Value of Machine Sold on Oct. 01, 2023
|
Particulars |
(₹) |
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Purchased on 1st December, 2020 |
1,20,000 |
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Less: Accumulate Depreciation for 4 years till Mar 31, 2022 |
|
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1.12.2020 to 31.3.2021 ( For
4 Month)= 12,000×4÷12=
₹4,000 |
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2021-2022 ₹ 12,000 |
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2022-2023 ₹ 12,000 |
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1.4.2023 to 1.10.2023 ( For 6
Month) = 12,000×6÷12=
₹6,000 |
34,000 |
|
Book value On 1st October, 2023 |
86,000 |
(2)Calculation of profit or loss on Sale of Machine
|
Particulars |
(₹) |
|
Book value On 1st October, 2023 |
86,000 |
|
Less: Sale Value |
(34,000) |
|
Loss on Sale of Machine |
52,000 |
Question 18:
Following balances appear in the books of Hari Bros:
|
|
|
₹ |
|
1st
April, 2024 |
Machinery
A/c |
80,000 |
|
|
Provision
for Depreciation A/c |
36,000 |
On 1st April, 2024, they decided to sell a machine for ₹8,700. This
machine was purchased for ₹16,000 in April, 2020. Prepare the Provision
for Depreciation Account and Machinery Account on 31st March, 2025 assuming the
firm has been charging Depreciation at 10% p.a. on Straight Line Method.
Answer:
|
Books of Rama Bros. Machinery Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2022 |
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2022 |
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Apr.01 |
Balance b/d (64,000 + 16,000) |
|
80,000 |
Apr.01 |
Provision for Depreciation |
|
6,400 |
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Apr.01 |
Bank |
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8,700 |
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Apr.01 |
Profit and Loss |
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900 |
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2023 |
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Mar.31 |
Balance c/d |
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64,000 |
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80,000 |
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80,000 |
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Provision for Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2022 |
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2022 |
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Apr.01 |
Machinery Account (Accumulated Dep. on Machine Sold) |
|
6,400 |
Apr.01 |
Balance b/d |
|
36,000 |
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2023 |
Balance c/d |
|
36,000 |
2022 |
Depreciation (On 64,000 @10%) |
|
6,400 |
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42,400 |
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42,400 |
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Working Notes
(1) Calculation of Book Value of Machine Sold on April 01, 2022
|
Particulars |
(₹) |
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Machine purchased in 2016 |
16,000 |
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Less: Accumulate Depreciation for 4 years till Mar 31, 2022 (1,600 × 4) |
(6,400) |
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Book value on April 01, 2022 |
9,600 |
(2)Calculation of profit or loss on Sale of Machine
|
Particulars |
(₹) |
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Book Value on April 01, 2022 |
9,600 |
|
Less: Sale Value |
(8,700) |
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Loss on Sale of Machine |
900 |
Question
19:
Following balances appear in the books of Priyank
Brothers:
|
|
|
₹ |
|
1st
April, 2024 |
Machinery
A/c |
20,00,000 |
|
|
Provision
for Depreciation A/c |
8,00,000 |
On 1st
April, 2024, they decide to sell a machine for ₹5,00,000.
This machine was purchased for ₹7,50,000 on 1st
April, 2021. Prepare the Machinery Account and Provision for Depreciation
Account for the year ended 31st March, 2025 assuming that the firm has been
charging Depreciation @ 10% p.a. on the Straight Line Method.
Answer:
|
Books of Priyank Brothers Machinery Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2023 |
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2023 |
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April 01 |
Balance b/d |
|
20,00,000 |
April 01 |
Provision for Depreciation |
|
2,25,000 |
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April 01 |
Bank |
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5,00,000 |
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April 01 |
Profit and Loss (Loss) |
|
25,000 |
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2025 |
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Mar.31 |
Balance c/d |
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12,50,000 |
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20,00,000 |
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20,00,000 |
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Provision for Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2023 |
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2023 |
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April 01 |
Machinery |
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2,25,000 |
April 01 |
Balance b/d |
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8,00,000 |
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2025 |
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2025 |
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Mar.31 |
Balance c/d |
|
7,00,000 |
Mar.31 |
Depreciation (for the year) |
|
1,25,000 |
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9,25,000 |
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9,25,000 |
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Working Notes
1 Calculation of Loss on Sale of Machinery
|
Particulars |
(₹) |
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Original cost of Machine Sold |
7,50,000 |
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Less: Accumulated Depreciation on Machine Sold, for 3 years, (7,50,000 × 10% × 3 years) |
(2,25,000) |
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Book Value of Machine Sold |
5,25,000 |
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Less: Sale Value |
(5,00,000) |
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Loss on Sale of Machine |
25,000 |
Question 20:
Following balances exist in the books of Ashutosh: ₹5,00,000 1st
April, 2024 Machinery Account ₹2,25,000 Provision for Depreciation
Account The machinery is depreciated @ 10% p.a. by the Fixed Installment
Method, the accounting year being April-March. On 1st October, 2024, a
machinery which was purchased on 1st July, 2021 for ₹1,00,000 was sold
for ₹42,000 and on the same date a fresh machine was purchased for
₹2,00,000.
Prepare Machinery Account and Provision for
Depreciation Account for the year 2024-25.
Answer:
|
Books
of Ashutosh Machinery Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2024 |
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2024 |
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Apr.01 |
Balance b/d |
|
5,00,000 |
Oct.1st |
Provision for Depreciation |
|
32,500 |
|
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Oct.1st |
Bank A/c |
|
2,00,000. |
Oct.1st |
Bank |
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42,000 |
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Oct.1st |
Profit and Loss |
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25,500 |
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2025 |
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Mar.31 |
Balance c/d |
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6,00,000 |
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7,00,000 |
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7,00,000 |
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Provision for Depreciation Account |
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Dr. |
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Cr. |
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Date |
Particulars |
J.F. |
(₹) |
Date |
Particulars |
J.F. |
(₹) |
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2024 |
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2024 |
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Oct.01 |
Machinery Account (Accumulated Dep.
on Machine Sold) |
|
32,500 |
Apr.01 |
Balance b/d |
|
2,25,000 |
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2025 |
Balance c/d |
|
2,47,500 |
Oct.01 |
Depreciation A/c |
5,000 |
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(for 6 Months) |
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2025 |
Depreciation (4,00,000 on @10% and 2,00,000 for 6
Month) |
|
50,000 |
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5,44,000 |
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5,44,000 |
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Working Notes
(1) Calculation of Book Value of Machine Sold on Oct. 01, 2025
|
Particulars |
(₹) |
|
Purchased on 1st July, 2021 |
1,00,000 |
|
Less: Accumulate Depreciation till Mar 31, 2022 |
|
|
1.7.2021 to 31.3.2022 ( For 9
Month)= 12,000×4÷12=
₹7,500 |
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2022-2023 ₹ 10,000 |
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2023-2024 ₹ 10,000 |
|
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1.4.2024 to 1.10.2025 ( For 6
Month) = 12,000×6÷12=
₹5,000 |
32,500 |
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Book value On 1st October, 2025 |
67,500 |
(2)Calculation of profit or loss on Sale of Machine
|
Particulars |
(₹) |
|
Book value On 1st October, 2025 |
67,500 |
|
Less: Sale Value |
(42,000) |
|
Loss on Sale of Machine |
25,500 |
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Ts Grewal Solution 2025-2026
Class 11th