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# Class 11-commerce T S GREWAL Solutions Accountancy 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 (1/3rd 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 2/3rd portion) 2,000 Machinery II 2,000 Machinery III 1,000 5,000 Mar 31 By Balance c/d Machinery I (on 2/3rd 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 1/3rd Portion of Machine I

 Particulars Rs. Book Value of 1/3rd 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. 1/3rd 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