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

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Chapter 14 - Depreciation Exercise 14.48

Question PQ 1

Q 1

Solution PQ 1

Calculation of Deprecation Amount and Rate

 Deprecation (amount) = T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation

Deprecation (Rate) = T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation 

Question PQ 2

Q 2

 

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

T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation

 

Question PQ 3

Q 3

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

T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation

Question PQ 4

Q 4

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)

T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation 

 

Question PQ 5

Q 5

 

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

 

Chapter 14 - Depreciation Exercise 14.49

Question PQ 6

Q 6

 

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)

T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation 

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

 

Question PQ 7

Q 7

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)

T-s-grewal Solutions Cbse Class 11-commerce Accountancy Chapter - Depreciation

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

 

Question PQ 8

Q 8

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