T. S. Grewal Solutions for Class 11-commerce Accountancy CBSE Chapter 14: Depreciation

Depreciation Exercise 14.48

Solution PQ 1

Calculation of Deprecation Amount and Rate

Deprecation (amount) =

Deprecation (Rate) =

Solution PQ 2

In the Book of X Ltd. Machinery Account
Dr.							Cr.
Date	Particulars	J.F	Rs.	Date	Particulars	J.F.	Rs.
2016				2017
Apr 01	To Bank A/c		4,00,000	Mar 31	By Depreciation A/c		40,000
Apr 01	To Bank A/c		50,000		By Balance c/d		4,10,000
	(Erection Expense)
			4,50,000				4,50,000
2017				2018
Apr 01	To Balance b/d		4,10,000	Mar 31	By Depreciation A/c		40,000
					By Balance c/d		3,70,000
			4,10,000				4,10,000
2018				2019
Apr 01	To Balance b/d		3,70,000	Mar 31	By Depreciation A/c		40,000
				Mar 31	By Balance c/d		3,30,000
			3,70,000				3,70,000

Calculation of Deprecation Amount

Solution PQ 3

Furniture Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2015					2016
Apr 01	To Bank A/c			55,000	Mar 31	By Depreciation A/c Furniture 1			5000
					Mar 31	By Balance c/d Furniture 1			50,000
				55,000					55,000
2016					2017
Apr 01	To Balance b/d			50,000	Mar 31	By Depreciation A/c
	Furniture 1					Furniture 1	5,000
Apr 01	To Bank A/c			9,500		Furniture 2	900		5,900
	Furniture 2
					Mar 31	By Balance c/d
						Furniture 1	45,000
						Furniture 2	8,600		53,600
				59,500					59,500
2017					2018
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Furniture 1	45,000				Furniture 1	5,000
	Furniture 2	8,600		53,600		Furniture 2	900		5,900
					Mar 31	By Balance c/d
						Furniture 1	40,000
						Furniture 2	7,700		47,700
				53,600					53,600
2018					2019
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Furniture 1	40,000				Furniture 1	5,000
	Furniture 2	7,700		47,700		Furniture 2	900
						Furniture 3	400		6,300
Oct 01	To Bank A/c			8,400
					Mar 31	By Balance c/d
						Furniture 1	35,000
						Furniture 2	6,800
						Furniture 3	8,000		49,800
				56,100					56,100

Working Note:

Calculation of Deprecation Amount

Solution PQ 4

Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars		J.F.	Rs.
2018				2019
Apr 1	To Bank A/c		50,000	Mar 31	By Depreciation A/c
	Machinery 1				Machinery 1	5,000
Sept 30	To Bank A/c		20,000		Machinery 2	1,000		6,000
	Machinery 2
				Mar 31	By Balance c/d
					Machinery 1	45,000
					Machinery 2	19,000		64,000
			70,000					70,000

Note :

Repair and renewal made on December 31, 2018 will not be recorded in Machinery Account because, this repair was after putting the Machinery in to use.

Working Note:

Calculation of Depreciation (Amount)

Solution PQ 5

Asset Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2012				2013
Apr 01	To Bank A/c		10,500	Mar 31	By Depreciation A/c		1,000
				Mar 31	By Balance c/d		9,500
			10,500				10,500
2013				2014
Apr 01	To Balance b/d		9,500	Mar 31	By Depreciation A/c		1,000
				Mar 31	By Balance c/d		8,500
			9,500				9,500
2014				2015
Apr 01	To Balance b/d		8,500	Mar 31	By Depreciation A/c		1000
				Mar 31	By Balance c/d		7,500
			8,500				8,500
2015				2016
Apr 01	To Balance b/d		7,500	Mar 31	By Depreciation A/c		1000
				Mar 31	By Balance c/d		6,500
			7,500				7,500
2016				2017
Apr 01	To Balance b/d		6,500	Mar 31	By Depreciation A/c		1000
				Mar 31	By Balance c/d		5,500
			6,500				6,500
2017				2018
Apr 01	To Balance b/d		5,500	Mar 31	By Depreciation A/c		1000
				Mar 31	By Balance c/d		4,500
			5,500				5,500
2018				2019
Apr 01	To Balance b/d		4,500	Mar 31	By Depreciation A/c		1000
				Mar 31	By Bank A/c		600
				Mar 31	By Profit and Loss A/c (Loss)		2,900
			4,500				4,500

(i) Depreciation Expense for the year ended March 31, 2013 = Rs.1000

(ii) The Net Book Value of the asset on March 31, 2017 = Rs.5,500

(iii) Loss on Sale of the asset on March 31, 2019 = Rs.2,900

Depreciation Exercise 14.49

Solution PQ 6

Machinery Account
Dr.									Cr.
Date	Particulars		J.F	Rs.	Date	Particulars		J.F.	Rs.
2015					2016
Apr 01	To Bank A/c (2,40,000 +10,000)			2,50,000	Mar 31	By Depreciation A/c
	Machinery 1					Machinery 1	12,500
Oct 01	To Bank A/c			1,00,000		Machinery 2 (for 6 Months)	2,500		15,000
	Machinery 2
					Mar 31	By Balance c/d
						Machinery 1	2,37,500
						Machinery 2	97,500		3,35,000
				3,50,000					3,50,000
2016					2017
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery 1	2,37,500				Machinery 1	12,500
	Machinery 2	97,500		3,35,000		Machinery 2	5,000		17,500
					Mar 31	By Balance c/d
						Machinery 1	2,25,000
						Machinery 2	92,500		3,17,500
				3,35,000					3,35,000
2017					2017
Apr 01	To Balance b/d				Oct 01	By Depreciation A/c (for 6 months)			6,250
	Machinery 1	2,25,000			Oct 01	To Bank A/c			1,43,000
	Machinery 2	92,500		3,17,500		(Machinery 1 sold)
					Oct 01	By Profit and loss A/c (loss on sale)			75,750
					2018
Oct 01	To Bank A/c			2,00,000	Mar 31	By Depreciation A/c
						Machinery 2	5,000
						Machinery 3 (for 6 months)	5,000		10,000
					Mar 31	By Balance c/d
						Machinery 2	87,500
						Machinery 3	1,95,000		2,82,500
				5,17,500					5,17,500
2018					2019
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery 1	87,500				Machinery 2	5,000
	Machinery 2	1,95,000		2,82,500		Machinery 3	10,000		15,000
					Mar 31	By Balance c/d
						Machinery 2	82,500
						Machinery 3	1,85,000		2,67,500
				2,82,500					2,82,500

Working Note:

1.

Calculation of Depreciation (Amount)

2.

Calculation Profit and Loss (Machinery 1)

Particulars	Rs.
Book Value on April 01, 2014	2,25,000
Less: Deprecation for 6 month	(6,250)
Book Value on Oct. 1, 2017	2,18,750
Less: Sale proceeds	(1,43,000)
Loss on Sale Machine	75,750

Solution PQ 7

Van Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016					2017
Apr 01	To Bank A/c				Mar 31	By Depreciation A/c Van I			6,500
	Van I			65,000	Mar 31	By Balance c/d Van I			58,500
				65,000					65,000
2017					2018
Apr 01	To Balance b/d Van I			58,500	Mar 31	By Depreciation A/c
Oct 01	To Bank A/c					Van I	6,500
	Van II			70,000		Van II (6 month)	3,500		10,000
					Mar 31	By Balance c/d
						Van I	52,000
						Van II	66,500		1,18,500
				1,28,500					1,28,500
2018					2018
Apr 01	To Balance b/d				Apr 01	By Bank A/c Van I			45,000
	Van I	52,000			Apr 01	By Profit and Loss A/c			7,000
	Van II	66,500		1,18,500	2019
					Mar 31	By Depreciation A/c
Apr 01	To Bank A/c					Van II	7,000
	Van III			1,70,000		Van III	17,000		24,000
					Mar 31	By Balance c/d
						Van II	59,500
						Van III	1,53,000		2,12,500
				2,88,500					2,88,500

Working Notes

1.

Calculation of Annual Depreciation (Amount)

2.

Calculation of profit or loss on Sale of Maruti Van (I)

Particulars	Rs.
Book Value on April 01, 2018	52,000
Less: Sale of Maruti Van	(45,000)
Loss on Sale of Maruti Van	7,000

Solution PQ 8

Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2015				2016
Apr 01	To Bank A/c (60,000×5)			Mar 31	By Depreciation A/c (6,000×5)		30,000
			3,00,000	Mar 31	By Balance c/d Van I		2,70,000
			3,00,000				3,00,000
2016				2017
Apr 01	To Balance b/d (54,000×5)		2,70,000	Mar 31	By Depreciation A/c
					(6,000×5)		30,000
				Mar. 31	By Balance c/d		2,40,000
			2,70,000				2,70,000
2017				2017
Apr 01	To Balance b/d			Apr 01	By Bank A/c		40,000
	(48,000×5)		2,40,000	Apr 01	By Profit and Loss A/c		8,000
				2018
				Mar 31	By Depreciation A/c
					Remaining 4 Machines (6,000×4)		24,000
				Mar 31	By Balance c/d		1,68,000
			2,40,000				2,40,000
2018				2018
Apr 01	To Balance b/d		1,68,000	Jul 01	By Bank A/c		28,000
	(42,000×4)			Jul 01	By Profit and Loss A/c		12,500
				Jul 01	By Depreciation (Machine Sold)		1,500
Oct 01	To Bank A/c		1,00,000	2019
				Mar 31	By Depreciation A/c
					Remaining 3 Machines (6,000×3)		18,000
					By Depreciation New Machine- 6 Months		5,000
				Mar 31	By Balance c/d
					Machine (Old-3)-36,000×3		1,08,000
					Machine (New-1) 95,000		95,000
			2,68,000				2,68,000

Working Notes

(i) Balance of Machinery Account on March 31, 2019: 1,08,000 + 95,000 = 2,03,000

Solution PQ 9

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2015					2016
Jul 01	To Bank A/c				Mar 31	By Depreciation A/c
	Machinery I			30,000		Machinery I (9 months)	2,250
2016						Machinery II	500		2,750
Jan 1	To Bank A/c				Mar 31	By Balance c/d
	Machinery II			20,000		Machinery I	27,750
						Machinery II	19,500		47,250
				50,000					50,000
2016					2017
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery I	27,750				Machinery I	3,000
	Machinery II	19,500		47,250		Machinery II	2,000
						Machinery III	500		5,500
Oct 01	To Bank A/c				Mar 31	By Balance c/d
	Machinery III			10,000		Machinery I	24,750
						Machinery II	17,500
						Machinery III	9,500		51,750
				57,250					57,250
2017					2017
Apr 01	To Balance b/d				Apr 01	By Bank A/c Machinery I (1/3^rd portion)			3,000
	Machinery I	24,750			Apr 01	By Profit and Loss A/c			5,250
	Machinery II	17,500			2018
	Machinery III	9,500		51,750	Mar 31	By Depreciation A/c
						Machinery I (on 2/3^rd portion)	2,000
						Machinery II	2,000
						Machinery III	1,000		5,000
					Mar 31	By Balance c/d
						Machinery I (on 2/3^rd portion)	14,500
						Machinery II	15,500
						Machinery III	8,500		38,500
				51,750					51,750

Working Notes:

1.

Calculation of Depreciation (Amount)

2.

Calculation of profit or loss a sale of 1/3^rd Portion of Machine I

Particulars	Rs.
Book Value of 1/3^rd portion of Machine I on April 01,2017 (24,750 × 1/3)	8,250
Less : Sale Value	(3,000)
Loss on sale	5,250

Depreciation Exercise 14.50

Solution PQ 10

In the books of A. Co. Ltd Machinery
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2015					2016
July 01	To Bank A/c				Mar 31	By Depreciation A/c
	Machinery I (20,000+3,000)			23,000		Machinery I (9 months)	1,725
2016						Machinery II (3 months)	300		2,025
Jan 01	To Bank A/c				Mar 31	By Balance A/c
	Machinery II			12,000		Machinery I	21,275
						Machinery II	11,700		32,975
				35,000					35,000
2016					2017
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery I	21,275				Machinery I	2,300
	Machinery II	11,700		32,975		Machinery II	1,200		3,500
					Mar 31	By Balance A/c
						Machinery I	18,975
						Machinery II	10,500		29,475
				32,975					32,975
2017					2017
Apr 01	To Balance c/d				June 30	By Bank A/c
	Machinery I	18,975				Machinery II			8,000
	Machinery II	10,500		29,475	June 30	By Depreciation A/c
						Machinery II (3 months)			300
July 01	To Bank A/c				June 30	By Profit and Loss A/c			2,200
	Machinery III			5,000	2018
July 01	To Creditors for Machinery A/c			10,000
	(Machinery III)				Mar 31	By Depreciation A/c
						Machinery I	2,300
						Machinery III (on 15,000 for 8 months)	1,125		3,425
						By Balance c/d
						Machinery I	16,675
						Machinery III	13,875		30,550
				44,475					44,475

Working Notes

1.

Calculation of Depreciation (Amount)

2.

Calculation of profit on loss sale of Machinery II

Particulars	Rs.
Book Value of Machinery II on April 01, 2017	10,500
Less: Depreciation for 3 months	(300)
Book Value on June 30	10,200
Less : sale	(8,000)
Loss of Sale	2,200

Solution PQ 11

Calculation of Deprecation Amount and Rate

Deprecation (amount) =

Deprecation (Rate) =

*Machinery Cost = Rs.52,000 + Rs.2,000 + Rs.3,000 + Rs.2,000 + Rs.1,000 = Rs.60,000

Books of Shivam Enterprise Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2016				2017
Apr 01	To Bank A/c		60,000	Mar 31	By Depreciation A/c		5,400
				Mar 31	By Balance c/d		54,600

			60,000				60,000
2017				2018
Apr 01	To Balance b/d		54,600	Mar 31	By Depreciation A/c		5,400
				Mar 31	By Balance c/d		49,200
			54,600				54,600
2018				2018
Apr 01	To Balance b/d		49,200	Oct 1	By Depreciation A/c (6 months)		2,700
				Oct 1	By Bank A/c		30,000
				Oct 1	By Profit and Loss A/c		16,500
			49,200				49,200

Note: Amount spent on repairs is a recurring nature expenses. So it will not be added machinery account.

Working Note:

Calculation of profit on loss on sale of Machinery

Particulars	Rs.
Book Value on April 01, 2018	49,200
Less : Depreciation for 6 months	(2,700)
Book Value on Oct 01, 2018	46,500
Less: Sale Value	(30,000)
Loss on Sale	16,500

Depreciation Exercise 14.51

Solution PQ 12

In the book of Modern Ltd. Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016					2017
Aug 01	To Bank A/c			60,000	Mar 31	By Depreciation A/c			8,000
	Machinery 1					Machinery 1 (8 months)
					Mar 31	Balance c/d			52,000
				60,000					60,000
2017					2018
Apr 01	To Balance b/d			52,000	Mar 31	By Depreciation A/c
Oct 1	To Bank A/c			20,000		Machinery 1	12,000
	Machinery 2					Machinery 2 (6 Months)	2,000		14,000
					Mar 31	By Balance c/d
						Machinery 1	40,000
						Machinery 2	18,000		58,000
				72,000					72,000
2018					2018
Apr 01	To Balance b/d				June 30	By Depreciation A/c Machinery 1 (3 months)			3000
	Machinery 1	40,000			June 30	By Bank A/c Machinery 1			38,500
	Machinery 2	18,000		58,000	2019
					Mar 31	By Depreciation A/c			4,000
June 30	To Profit and Loss A/c (profit)			1,500		Machinery 2
					Mar 31	By Balance c/d			14,000
				59,500					59,500

Input CGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2018
Oct 01	To Purchases A/c		1,200	Mar 31	By Balance c/d		1,200

			1,200				1,200

Input SGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2018
Oct 01	To Purchases A/c		1,200	Mar 31	By Balance c/d		1,200

			1,200				1,200

Output IGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2018
Mar 31	By Balance c/d		4,620	Jun 30	To sales A/c		4,620
			4,620				4,620

Particulars	Rs.
Value on Apr 01	40,000
Depreciation for 3 Months	(3,000)
Value on June 30	37,000
Less : Sale of Machinery	(38,500)
Profit on sale of Machinery 1	1,500

Solution PQ 13

In the book of Sohan Lal and Sons Plant Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016					2017
July 01	To Bank A/c			60,000	Mar 31	By Depreciation A/c
	Plant I					Plant I (9 months)			4,500
2017						Plant II (3 months)			1,000
Jan 01	To Bank A/c			40,000	Mar 31	By Balance c/d
	Plant II					Plant I	55,500
						Plant II	39,000		94,500
				1,00,000					1,00,000
2017					2018
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Plant I	55,500				Plant I	6,000
	Plant II	39,000		94,500		Plant II	4,000
Oct 01	To Bank A/c					Plant III (6 months)	1,000		11,000
	Plant III			20,000	Mar 31	By Balance c/d
						Plant I	49,500
						Plant II	35,000
						Plant III	19,000		1,03,500
				1,14,500					1,14,500
2018					2018
Apr 01	To Balance b/d				Apr 01	By Bank A/c			6,000
	Plant I	49,500			Apr 01	By Profit and Loss A/c			10,500
	Plant II	35,000			2019
	Plant III	19,000		1,03,500	Mar 31	By Depreciation A/c
						Plant I	4,000
						Plant II	4,000
						Plant III	2,000		10,000
					Mar 31	By Balance c/d
						Plant I	29,000
						Plant II	31,000
						Plant III	17,000		77,000
				1,03,500					1,03,500

Input CGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2018
Oct 01	To Purchases A/c		1,200	Mar 31	By Balance c/d		1,200

			1,200				1,200

Input SGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2018
Oct 01	To Purchases A/c		1,200	Mar 31	By Balance c/d		1,200

			1,200				1,200

Output CGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2018
Mar 31	By Balance c/d		360	Apr 01	To Sales A/c		360
			360				360

Output SGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2018
Mar 31	By Balance c/d		360	Apr 01	To Sales A/c		360
			360				360

Working Notes

2. Calculation of profit or loss on Sale of Plant I

Particulars	Rs.
1/3^rd of Book Value of Plant I as on April 01 (49,500 × 1/3)	16,500
Less : Sale of Plant	(6,000)
Loss on Sale of Plant	10,500

Solution PQ 14

In the books of Rama Bros. Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2016				2016
Apr 01	To Balance b/d*		80,000	Apr 01	By Provision for Depreciation A/c		6,400
				Apr 01	By Bank A/c		8,700
				Apr 01	By Profit and Loss A/c		900
				2017
				Mar 31	By Balance c/d		64,000
			80,000				80,000

*Machinery Cost = 64,000 + 16,000 = 80,000

Provision for Depreciation Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2016				2016
Apr 01	To Machinery A/c (Accumulate dep. for Machinery sold )		6,400	Apr 01	By Balance b/d		36,000
2017				2017
Mar 31	To Balance c/d		36,000	Mar 31	By Depreciation A/c		6,400
			42,400				42,400

Working Notes

1.

Calculation of Book Value of Machine Sold on April 01, 2016

Particulars	Rs.
Machine purchased in 2012	16,000
Less : Accumulate Deprecation for 4 years till Mar 31, 2015 (1,600 × 4)	(6,400)
Book Value on April 01, 2016	9,600

2.

Calculation of profit or Loss on sale Machinery

Particulars	Rs.
Book Value on April 01, 2015	9,600
Less : Sale Value	(8,700)
Loss on Sale o Machine	900

Solution PQ 15

In the book of Priyank Brothers Machinery Accounts
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2017
Apr 01	To Balance b/d		20,00,000	Apr 01	By Provision for Depreciation A/c		2,25,000
				Apr 01	By Bank A/c		5,00,000
				Apr 01	By Profit and Loss A/c (Loss)		25,000
				2018
				Mar 31	By Balance c/d		12,50,000
			20,00,000				20,00,000

Provision for Depreciation A/c Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2017
Apr 01	To Machinery A/c		2,25,000	Apr 01	By Balance b/d		8,00,000
2018				2018
Mar 31	To Balance c/d		7,00,000	Mar 31	By Depreciation A/c		1,25,000
			9,25,,000				9,25,000

Working Note:

Calculation of profit on loss on sale of Machinery

Particulars	Rs.
Original Cost of machinery	7,50,000
Less: Accumulate Deprecation machinery sold for 3 years till Mar (7,50,000 × 3×10%)	(2,25,000)
Book Value of Machinery sold	5,25,000
Less: Sale Value	(5,00,000)
Loss on Sale	25,000

Solution PQ 16

Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Apr 01	To Balance b/d*		5,00,000	Oct 01	By Provision for Depreciation A/c		32,500
Oct 01	To Bank A/c		2,00,000	Oct 01	By Bank A/c		42,000
				Oct 01	By Profit and Loss A/c		25,500
				2019
				Mar 31	By Balance c/d		6,00,000
			7,00,000				7,00,000

*Machinery Cost = 4,00,000 + 1,00,000 = 5,00,000

Provision for Depreciation A/c Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Oct 01	To Machinery A/c		32,500	Apr 01	By Balance b/d		2,25,000
2019				2019
Mar 31	To Balance c/d		2,47,500	Mar 31	By Depreciation A/c		55,000
			2,80,000				2,80,000

Input IGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2019
Oct 01	To Purchases A/c		24,000	Mar 31	By Balance c/d		24,000

			24,000				24,000

Output CGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2018
Mar 31	By Balance c/d		1,440	Oct 01	To Sales A/c		1,440
			1,440				1,440

Output SGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2019				2018
Mar 31	By Balance c/d		1,440	Oct 01	To Sales A/c		1,440
			1,440				1,440

Working Notes:

1.

Calculation of loss on sale of Machinery

Particulars	Rs.
Original cost of Machine sold	1,00,000
Less : Accumulate Deprecation on Machine sold, from July 2015 to Oct 01, 2018 (1,00,000 × 10% × 3.25 years)	(32,500)
Book Value of Machine Sold	67,500
Less : Sale Value	(42,000)
Loss on Sale of Machine	25,500

2.

Calculation By Depreciation charged during the year

Particulars	Rs.
On 4,00,000 @ 10% (4,00,000 × 10%)	40,000
On 2,00,000 @ 10% for 6 months (2,00,000 × 10% × 6/12)	10,000
On 1,00,000 @ 10% for 6 months (1,00,000 ×10% × 6/12)	5,000
Total	55,000

Depreciation Exercise 14.52

Solution PQ 17

Boiler Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
I Year				I year
Jan 01	To Bank A/c *		20,000	Dec 31	By Depreciation A/c		2,000
				Dec 31	By Balance c/d		18,000
			20,000				20,000
II year				II Year
Jan 01	To Balance b/d		18,000	Dec 31	By Depreciation A/c		1,800
				Dec 31	By Balance c/d		16,200
			18,000				18,000
II year				III Year
Jan 01	To Balance b/d		16,200	Dec 31	By Depreciation A/c		1,620
				Dec 31	By Balance c/d		14,580
			16,200				16,200

*Goods Cost = 10,000 + 2,000 + 7,000 + 1,000 = Rs.20,000

Solution PQ 18

Furniture Account (Original Cost Method)
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
I Year				I year
Jan 01	To Bank A/c		4,000	Dec 31	By Depreciation A/c		200
				Dec 31	By Balance c/d		3,800
			4,000				4,000
II year				II Year
Jan 01	To Balance b/d		3,800	Dec 31	By Depreciation A/c		200
				Dec 31	By Balance c/d		3,600
			3,800				3,800
III year				III Year
Jan 01	To Balance b/d		3,600	Dec 31	By Depreciation A/c		200
				Dec 31	By Balance c/d		3,400
			3,600				3,600
IV Year				IV Year
Jan 01	To Balance b/d		3,400	Dec 31	By Depreciation A/c		200
				Dec 31	By Balance c/d		3,200
			3,400				3,400

Furniture Account (Diminishing Balance Method)
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
I Year				I year
Jan 01	To Bank A/c		4,000	Dec 31	By Depreciation A/c		200
				Dec 31	By Balance c/d		3,800
			4,000				4,000
II year				II Year
Jan 01	To Balance b/d		3,800	Dec 31	By Depreciation A/c		190
				Dec 31	By Balance c/d		3,610
			3,800				3,800
II year				III Year
Jan 01	To Balance b/d		3,610	Dec 31	By Depreciation A/c		181
				Dec 31	By Balance c/d		3,429
			3,610				3,610
IV year				IV Year
Jan 01	To Balance b/d		3,429	Dec. 31	By Depreciation A/c		171
				Dec. 31	By Balance c/d		3,258
			3,429				3,429

Solution PQ 19

In the book of Babu Machinery Account
Dr.								Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars		J.F.	Rs.
2017				2018
Apr 01	To Bank A/c Machinery I		6,000	Mar 31	By Depreciation A/c
Oct 01	To Bank A/c Machinery II		5,000		Machinery I	600
					Machinery II (6 months)	250		850
					By Balance c/d
					Machinery I			5,400
					Machinery II			4,750
			11,000					11,000
2018				2018
				Oct 01	By Depreciation A/c
Apr 01	To Balance b/d				Machinery I (6 months)			270
	Machinery I		5,400	Oct 01	By Bank A/c			4,000
	Machinery II		4,750	Oct 01	By Profit and Loss A/c			1,130
				2019
				Mar 31	By Depreciation A/c
					Machinery II			475
				Mar 31	By Balance c/d Machinery II			4,275
			10,150					10,150

Working Note

1.

Calculation of profit and loss on sale of machine:

Particulars		Rs.
Book Value of Machinery April 01, 2018		5,400
	Less: Depreciation A/c (6 Months)	(270)
Book Value of Machinery on Oct 01, 2017		5,130
	Less: Sale	(4,000)
Loss on Sale of Machinery		1,130

Solution PQ 20

In the books of X Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
I Year				I Year
Jan 01	To Bank A/c *		35,000	Dec 31	By Depreciation A/c		3,500
				Dec 31	By Balance c/d		31,500
			35,000				35,000
II Year				II Year
Jan 01	To Balance b/d		31,500	Dec 31	By Depreciation A/c		3,150
				Dec 31	By Balance c/d		28,350
			31,500				31,500
III Year				III Year
Jan 01	To Balance b/d		28,350	Dec 31	By Depreciation A/c		2,835
				Dec 31	By Balance c/d		25,515
			28,350				28,350
IV Year				IV Year
Jan 01	To Balance b/d		25,515	Jan 01	By Bank A/c (30,500 - 500 brokerage)		30,000
Dec 31	To Profit and Loss A/c (Profit)		4,485
			30,000				30,000

*Cost of machinery = 25,000 + 5,000 + 1,000 + 3,500, + 500 = Rs.35,000

Solution PQ 21

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016					2017
Oct 01	To Bank A/c			50,000	Mar 31	By Depreciation A/c (6 Months)			3,750
	Machinery I				Mar 31	By Balance c/d			46,250
				50,000					50,000
2017					2018
1 April	To Balance b/d			46,250	Mar 31	By Depreciation A/c
	Machinery I					Machinery I	6,938
						Machinery II	500		7,438
Dec 01	To Bank A/c			10,000	Mar 31	By Balance c/d
	Machinery II					Machinery I	39,312
						Machinery II	9,500		48,812
				56,250					56,250
2018					2019
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery I	39,312				Machinery I	5,897
	Machinery II	9,500		48,812		Machinery II	1,425		7,322
					Mar 31	By Bank A/c Machinery I			28,415
					Mar 31	By Profit and Loss A/c			5,000
					Mar 31	By Balance c/d Machinery II			8,075
				48,812					48,812

Working Note

1.

Calculation of profit or loss on sale of machinery:

Particulars		Rs.
Book Value of Machinery I on April 01, 2018		39,312
	Less: Depreciation (39,312 × 15%)	(5,897)
Book Value of Machine Machinery I on March 31, 2019		33,415
	Less: Sale Value	(28,415)
Loss on Sale of Machine Machinery I		5,000

Solution PQ 22

I. Calculation of Depreciation from April 01, 2016 to March 31, 2019

Depreciation Rate : 10% p.a. on Diminishing Balance Method

Year	Machinery	Date of Purchase	Value	No. of Months	Amt. of Dep.	Total Dep.
2016-17	Machinery 1	April 01,2016	20,000	12	2,000	2,000
2017-18	Machinery 1	April 01, 2016	18,000 (20,000 - 2,000)	12	1,800
	Machinery 2	Oct. 01,2017	10,000	6	500	2,300
2018-19	Machinery 1	April 01, 2016	16,200 (18,000 -1,800)	12	1,620
	Machinery 2	Oct. 01, 2017	9,500 (10,000 - 500)	12	950
	Machinery 3	Apr. 01 2018	5,000	12	500	3,070

II. Balance in Machinery Account as on March 31, 2019 will be Rs.27,630

Working Notes: Preparation of Machinery Account

	Machinery Account
Dr.										Cr.
Date		Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016						2017
Apr 01		To Bank A/c			20,000	Mar 31	By Depreciation A/c			2,000
		Machinery 1					Machinery 1
						Mar 31	By Balance c/d			18,000
							Machinery 1
					20,000					20,000
2017						2018
Apr 01		To Bank A/c b/d			18,000	Mar 31	By Depreciation A/c
		Machinery 1					Machinery 1	1,800
Oct 01		To Bank A/c Machinery 2			10,000		Machinery 2	500		2300
							By Balance c/d
							Machinery 1	16,200
							Machinery 2	9,500		25,700
					28,000					28,000
2018						2019
Apr 01		To Balance b/d				Mar 31	By Depreciation A/c
		Machinery 1	16,200				Machinery 1	1,620
		Machinery 2	9,500		25,700		Machinery 2	950
Apr 01		To Bank A/c Machinery 3			5,000		Machinery 3	500		3,070
						Mar 31	By Balance c/d
							Machinery 1	14,580
							Machinery 2	8,550
							Machinery 3	4,500		27,630
					30,700					30,700

Depreciation Exercise 14.53

Solution PQ 23

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2016					2017
Oct 01	To Bank A/c				Mar 31	By Depreciation A/c
	Machinery I (3/4)	30,000				Machinery I (3/4) (for 6months)	1,500
	Machinery I(1/4)	10,000		40,000		Machinery I (1/4) (for 6 months)	500		2,000
					Mar 31	By Balance c/d
						Machinery I (3/4)	28,500
						Machinery I (1/4)	9,500		38,000
				40,000					40,000
2017					2018
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery I (3/4)	28,500				Machinery I (3/4)	2,850
	Machinery I(1/4)	9,500		38,000		Machinery I (1/4)	9,50		3,800
					Mar 31	By Balance c/d
						Machinery I (3/4)	25,650
						Machinery I (1/4)	8,550		34,200
				38,000					38,000
2018					2019
Apr 01	To Balance b/d				Jan 31	By Depreciation A/c
						Machinery I (1/4) (for 10 Months)			713
	Machinery I (3/4)	25,650			Jan 31	By Bank A/c Machinery I (1/4)			5,600
	Machinery I(1/4)	8,550		34,200		By Profit and Loss A/c (Loss)			2,237
					Mar 31	By Depreciation A/c
Jan 31	To Bank A/c			15,000		Machinery I (3/4)	2,565
						Machinery II (for 2 months)	250		2,815
					Mar 31	By Balance c/d
						Machinery I (3/4)	23,085
						Machinery II	14,750		37,835
				49,200					49,200

Working Note:

1.

Calculation of Profit or Loss on Sale of Machine Machinery I (1/4) :

Particulars		Rs.
Book Value of Machine Machinery I (1/4) on April 01, 2018		8,550
	Less: Depreciation A/c (10 Months)	(713)
Book Value of Machine Machinery I (1/4) on Jan 31, 2019		7,837
	Less: Sale Value	(5,600)
Loss on Sale of Machine Machinery I (1/4)		2,237

Solution PQ 24

Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2015				2016
Oct 01	To Bank A/c*		35,000	Mar 31	By Depreciation A/c (6 months)		1,750
				Mar 31	By Balance c/d		33,250
			35,000				35,000
2016				2017
Apr 01	To Balance b/d		33,250	Mar 31	By Depreciation A/c		3,325
				Mar 31	By Balance c/d		29,925
			33,250				33,250
2017				2018
Apr 01	To Balance b/d		29,925	Mar 01	By Depreciation A/c		2,993
2018				Mar 31	By Bank A/c (30,500 - 500)		30,000
31 Mar	Profit and Loss A/c		3,068
			32,993				32,993

*Machinery Cost = 25,000 + 5,000 + 1,000+4,000 = Rs.35,000

Working Note:

Calculation of Profit or Loss on Sale of Machinery

Particulars		Rs.
Book Value of Machinery on Apr 01, 2017		29,925
	Less: Depreciation for the year	(2,993)
Book Value of Machinery on Mar 31, 2018		26,932
	Less: Sale Value (30,500 - 500)	(30,000)
Profit on Sale		3,068

Solution PQ 25

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2015					2016
July 01	To Bank A/c Machinery I(2/3)	20,000			Mar 31	By Depreciation A/c
July 01	To Bank A/c Machinery I(1/3)	10,000		30,000		Machinery I (2/3)( 9 months)	1,500
2012						Machinery I(1/3) (9 months)	750
Jan 01	To Bank A/c Machinery II			20,000		Machinery II (3 months)	500		2,750
					Mar 31	By Balance c/d
						Machinery I (2/3)	18,500
						Machinery I (1/3)	9,250
						Machinery II	19,500		47,250
				50,000					50,000
2016					2017
Apr 01	To Balance b/d
	Machinery I(2/3)	18,500
	Machinery I(1/3)	9,250
	Machinery II	19,500		47,250	Mar 31	By Depreciation A/c
Oct 01	To Bank A/c Machinery III			10,000		Machinery I(2/3)	1,850
						Machinery I(1/3)	925
						Machinery II	1,950
						Machinery III	500		5,225
					Mar 31	By Balance c/d
						Machinery I (2/3)	16,650
						Machinery I(1/3)	8,325
						Machinery II	17,550
						Machinery III	9,500		52,025
				57,250					57,250
2016					2017
Apr 01	To Balance b/d				Apr 01	By Bank A/c Machinery I (1/3)			3,000
	Machinery I(2/3)	16,650			Apr 0 1	By Profit and Loss A/c			5,325
	Machinery I(1/3)	8,325			2018
	Machinery II	17,550			Mar 31	By Depreciation A/c
	Machinery III	9,500		52,025		Machinery I(2/3)	1,665
						Machinery II	1,755
						Machinery III	950		4,370
					Mar 31	By Balance c/d
						Machinery I(2/3)	14,985
						Machinery II	15,795
					Mar 31	Machinery III	8,550		39,330
				52,025					52,025

Working Note:

Calculation of Profit or Loss on Sale of Plant I (1/3)

Particulars		Rs.
Book Value of Plant I(1/3) as on Apr 01,2017		8,325
	Less: Sale Value	(3,000)
Loss on Sale		5,325

Solution PQ 26

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2015-16					2015-16
July 01	To Balance b/d *				Mar. 31	By Depreciation A/c (9 months) Machinery I			15,000
	Machinery I			2,00,000	Mar. 31	By Balance c/d			1,85,000
				2,00,000					2,00,000
2016-17					2016-17
Apr 01	To Balance b/d Machinery I			1,85,000	Mar 31	By Depreciation A/c
Apr 01	To Bank A/c Machinery II			2,40,000		Machinery I	18,500
						Machinery II	24,000		42,500
					Mar 31	By Balance c/d
						Machinery I	1,66,500
						Machinery II	2,16,000		3,82,500
				4,25,000					4,25,000
2017-18					2017-18
Apr 01	To Balance b/d				Oct 01	By Depreciation A/c Machinery I (6 months)			8,325
	Machinery I	1,66,500			Oct 1	By Bank A/c
	Machinery II	2,16,000		3,82,500		Machinery I			1,45,000
					Oct 1	By Profit and Loss A/c			13,175
Jan 01	To Bank A/c				Mar 31	By Depreciation A/c
	Machinery III			4,00,000		Machinery II	21,600
						Machinery III (3 months)	10,000		31,600
					Mar 31	By Balance c/d
						Machinery II	1,94,400
						Machinery III	3,90,000		5,84,400
				7,82,500					7,82,500

*Machinery I cost = 1,80,000+ 20,000 = 2,00,000

Input IGST A/c
Dr.				Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2017				2018
Oct 01	To Purchases A/c		48,000	Mar 31	By Balance c/d		48,000

			48,000				48,000

Working note:

1.

Calculation of Profit or Loss on Sale of Machinery I

Particulars		Rs.
Book Value of Machinery I on April 01,		1,66,500
	Less: Depreciation (6 months)	(8,325)
Book Value of Machinery I on Oct 01,		1,58,175
	Less: Sale Value	(1,45,000)
Loss on Sale of Machinery I		13,175

Solution PQ 27

Books of M/s. Amrit Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Apr 01	To Balance b/d		60,000	Apr 01	By Machinery Disposal A/c		16,000
				2019
				Mar 31	By Balance c/d		44,000
			60,000				60,000

*Machinery Cost = 44,000 + 16,000 = Rs.60,000

Provision for Depreciation Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Apr 01	To Machinery Disposal A/c (4 years)		6,400	Apr 01	By Balance b/d		36,000
2019				2019
Mar 13	To Balance c/d		34,000	Mar 31	By Depreciation A/c (Machine costing Rs.44,000)		4,400
			40,400				40,400

Machinery Disposal Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Apr 01	To Machinery A/c		16,000	Apr 01	By Provision for Depreciation A/c		6,400
				2019
				Mar 31	By Bank A/c		8,400
					By Profit and Loss A/c		1,200
			16,000				16,000

Working Note:

Calculation of profit and Loss on Machinery Sold:
Particulars		Rs.
Original Cost of Machine on Apr 01, 2014		16,000
	Less: Accumulated Depreciation on Machine Sold (1,600 × 4)	(6,400)
Book Value of Machine I on April 01, 2018		9,600
	Less: Sale Value	(8,400)
Loss on Sale		1,200

Depreciation Exercise 14.54

Solution PQ 28

Machinery Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2011					2012
Oct 01	To Bank A/c				Mar 31	By Depreciation A/c
	Machinery I (part 1)	2,30,000				Machinery I (part 1) ( 6 months)	11,500
	Machinery I (part 2)	20,000		2,50,000		Machinery I (part 2) (6 months)	1,000		12,500
					Mar 31	By Balance c/d
						Machinery I (part 1)	2,18,500
						Machinery I (part 2)	19,000		2,37,500
				2,50,000					2,50,000
2012					2013
Apr 01	To Balance b/d				Mar 31	By Depreciation A/c
	Machinery I (part 1)	2,18,500				Machinery I (part 1 )	21,850
	Machinery I (part 2)	19,000		2,37,500		Machinery I (part 2)	1,900		23,750
					Mar 31	By Balance c/d
						Machinery I (part 1)	1,96,650
						Machinery I (part 2)	17,100		2,13,750
				2,37,500					2,37,500
2013					2014
Apr 01	To Balance b/d				Jan 01	By Depreciation A/c
	Machinery I (part 1)	1,96,650				Machinery I (part 2) (9 months)			1,283
	Machinery I (part 2)	17,100		2,13,750	Jan 01	By Bank A/c Machinery I (part 2)			2,000
					Jan 01	By Profit and Loss A/c (Loss)			13,817
					Mar 31	By Depreciation A/c
						Machinery I (part 1)			19,665
					Mar 31	By Balance c/d			1,76,985
				2,13,750					2,13,750

Solution PQ 29

In the books of Sharma andCo. Machinery Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2016				2017
Apr 01	To Bank A/c Machinery I		1,50,000	Mar 31	By Balance c/d		2,00,000
Oct 01	To Bank A/c Machinery II		50,000
			2,00,000				2,00,000
2018				2018
Apr 01	To Balance b/d		2,00,000	Sep 30	By Machinery Disposal Machinery II		50,000
				2018
				Mar 31	By Balance c/d		1,50,000
			2,00,000				2,00,000

Accumulate Deprecation Account
Dr.									Cr.
Date	Particulars		J.F.	Rs.	Date	Particulars		J.F.	Rs.
2017					2017
Mar 31	To Balance c/d				Mar 31	By Depreciation A/c
	Machinery I	15,000				Machinery I	15,000
	Machinery II	2,500		17,500		Machinery II (for 6 months)	2,500		17,500
				17,500					17,500
2018					2017
Mar 31	To Balance c/d				April 01	By Balance b/d
	Machinery I	30,000				Machinery I	15,000
	Machinery II	7,500		37,500		Machinery II	2,500		17,500
					2018
					Mar 31	By Depreciation A/c
						Machinery I	15,000
						Machinery II	5,000		20,000
				37,500					37,500
2018					2018
Sep 30	To Machinery disposal A/c			10,000	Apr 01	By Balance b/d
2019						Machinery I	30,000
Mar 31	To Balance c/d			45,000		Machinery II	7,500		37,500
					Sep 30	By Depreciation A/c
						Machinery II			2,500
					2019
					Mar 31	By Deprecation A/c
						Machinery I			15,000
				55,000					55,000

Machinery Disposal Account
Dr.							Cr.
Date	Particulars	J.F.	Rs.	Date	Particulars	J.F.	Rs.
2018				2018
Sep 30	To Machinery A/c		50,000	Sep 30	By Accumulated Depreciation A/c		10,000
				Sep 30	By Bank A/c		40,000
			50,000				50,000

Calculation of profit and Loss on Machinery II:

Particulars		Rs.
Original Cost of Machine on Oct 01, 2016		50,000
	Less: Accumulated Depreciation	(10,000)
Book Value on Sept. 30 ,2018		40,000
	Less: Sale Value	(40,000)
No Profit and Loss		NIL

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Class 11-commerce T S GREWAL Solutions Accountancy Chapter 14: Depreciation

Depreciation Exercise 14.48

Solution PQ 1

Solution PQ 2

Solution PQ 3

Solution PQ 4

Solution PQ 5

Depreciation Exercise 14.49

Solution PQ 6

Solution PQ 7

Solution PQ 8

Solution PQ 9

Depreciation Exercise 14.50

Solution PQ 10

Solution PQ 11

Depreciation Exercise 14.51

Solution PQ 12

Solution PQ 13

Solution PQ 14

Solution PQ 15

Solution PQ 16

Depreciation Exercise 14.52

Solution PQ 17

Solution PQ 18

Solution PQ 19

Solution PQ 20

Solution PQ 21

Solution PQ 22

Depreciation Exercise 14.53

Solution PQ 23

Solution PQ 24

Solution PQ 25

Solution PQ 26

Solution PQ 27

Depreciation Exercise 14.54

Solution PQ 28

Solution PQ 29

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