Page 131 - ISCDEBK-XI

15.16 Double Entry Book Keeping—ISC XI

Solution:
Dr. MACHINERY ACCOUNT Cr.
Date Particulars ` Date Particulars `
2013 2013
April 1 To Balance b/d 4,60,000 Sept. 1 By Depreciation A/c (WN 1) 962
By Loss on Accident of Machine A/c 14,434
(WN 1)
2014
March 31 By Depreciation A/c (WN 1) 66,691
[15% on ` 4,44,604 (i.e., ` 4,60,000
– ` 15,396)]
March 31 By Balance c/d 3,77,913
4,60,000 4,60,000
2014 2015
April 1 To Balance b/d 3,77,913 March 31 By Depreciation A/c:
July 1 To Bank A/c (` 30,000 + ` 2,500) 32,500 (` 3,77,913 × 15/100) 56,687
To Creditors for Machine A/c 20,000 (` 52,500 × 15/100 × 9/12) 5,906 62,593
(` 50,000 – ` 30,000) March 31 By Balance c/d 3,67,820
4,30,413 4,30,413
2015 2015
April 1 To Balance b/d 3,67,820 Aug. 31 By Bank A/c (Sale) 36,000
Aug. 31 To Gain (Profit) on Sale of Machine A/c 17,864 By Depreciation A/c (WN 2) 1,209
(WN 2) 2016
March 31 By Depreciation A/c 52,271
[15% on ` 3,48,475 (i.e., ` 3,67,820
– ` 19,345)]
March 31 By Balance b/d 2,96,204
3,85,684 3,85,684
2016 2016
April 1 To Balance b/d 2,96,204 Nov. 1 By Bank A/c (Sale) 4,000
By Depreciation A/c (WN 3) 537
By Loss on Sale of Machine A/c (WN 3) 1,604
2017
March 31 By Depreciation A/c 43,509
[15% on ` 2,90,063 (i.e., ` 2,96,204
– ` 6,141)] (WN 3)
March 31 By Balance c/d 2,46,554
2,96,204 2,96,204

Working Notes:
1. Calculation of Loss on Accident: `
Cost on 1st May, 2011 (` 20,000 + ` 1,000) 21,000
Less: Depreciation for 11 months (` 21,000 × 15/100 × 11/12) 2,887
Book Value on 1st April, 2012 18,113
Less: Depreciation for 2012–13 2,717
Book Value on 1st April, 2013 15,396
Less: Depreciation for 5 months (` 15,396 × 15/100 × 5/12) 962
Loss on Accident 14,434