TS Grewal Solutions for Class 11 Accountancy

TS Grewal Solutions for Class 11 Accountancy Chapter 11 – Bank Reconciliation Statement

Question 1.

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Question 2.

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Question 3.
On 31st March, 2015, Cash Book showed a balance of Rs.15,000 as cash at bank, but the Bank Pass Book of the same date showed that cheques for Rs.1,850, Rs.1,000 and Rs.1,750 respectively had not been presented for payment; also cheques amounting to Rs.4,100 paid into the account had not yet been cleared. Find by means of a Bank Reconciliation Statement the balance shown in the Pass Book.
Solution:

Question 4.
Mr. Ram Behari has his account at Punjab National Bank, Delhi. According to his Cash Book, his bank balance on 31st March, 2015 was Rs.72,950. He sent cheques for Rs.90,075 to his bank for collection but cheques amounted toRs. 43,769 were not collected by that date. Out of the cheques issued by him in payment of his debts, cheques for Rs.29,344 were not presented for payment. Prepare Bank Reconciliation Statement and determine the balance as shown by his Pass Book.
Solution:

Question 5.
On 31st March, 2015, Cash Book of Mahesh showed debit bank balance of Rs.75,000. When compared with the Bank Statement, following facts were discovered. 30th March, two cheques of Rs.5,000 and Rs.7,000 were deposited in the bank but were not realised till date. On 28th March, three cheques of Rs.6,000, Rs.8,000 and Rs.12,000 were issued but none of these were presented to the bank for payment. On 31st March, bank credited Rs.1,250 as interest but this was not recorded in the Cash Book. Similarly, bank had charged Rs.150 as bank charges but this was not recorded in the Cash Book Prepare Bank Reconciliation Statement on 31st March, 2015.
Solution:

Question 6.
Cash Book of a merchant showed bank balance of Rs.23,000 on 31st March, 2015. On go’ through the Cash Book, it was found that two cheques for Rs.5,000 and Rs.7,000 deposited the month of March were not credited in the Pass Book till 2nd April, 2015 and three cheques for Rs.6,000, Rs.8,000 and Rs.12,000 issued on 28th March, were not presented payment till 3rd April, 2015. In addition to this, bank had credited merchant for Rs.125 interest and had debited him for Rs.100 as bank charges for which entries in Cash Bo were not recorded. Prepare Bank Reconciliation Statement as on 31st March, 2015.
Solution:

Question 7.
On 30th June, 2015, bank column of the Cash Book showed balance of Rs.12,000 but the Pass Book showed a different balance due to the following reasons:
i. Cheques paid into the bank Rs.8,000 but out of these only cheques of 6,500 credited by bankers.
ii. The receipt column of the Cash Book under cast by Rs.200.
iii. On 29th June, a customer deposited Rs.3000 directly in the Bank Account but it was entered in the Pass Book only.
iv. Cheques of Rs.9,200 were issued of which Rs.2,200 were presented for payment on 15th July.
v. Pass Book shows a credit of Rs.330 as interest and a debit of Rs.60 as bank charges. Prepare Bank Reconciliation Statement as on 30th June, 2015.
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Question 8.

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Question 9.
From the following particulars, prepare Bank Reconciliation Statement as on 31st December, 2008:
i. Debit balance as per Cash Book Rs.10,000.
ii. A cheque for Rs.500 issued in favour of Karan has not been presented for payment.
iii. A bill for Rs.700 retired by bank under a rebate of Rs.20, the full amount of the bill was credited in the Cash Book.
iv. A cheque for Rs.295 deposited in the bank has been dishonoured.
v. A sum of Rs.800 deposited in the bank has been credited as Rs.80 in the Pass Book.
vi. Payment side of the Cash Book has been under cast by Rs.200.
vii. A bill receivable for Rs.1,000 (discounted with the bank in November 2008) dishonoured on 31st December, 2008.
Solution:

Question 10.
On examining the Bank Statement of Green Ltd., it is found that the balance shown on 31st March, 2015, differs from the bank balance of Rs.23,650 shown by the Cash Book on that date. From a detailed comparison of the entries it is found that:
i. Rs.2,860 is entered in the Cash Book as paid into the bank on 31st March, 2015 but not credited by the ba until the following day.
ii. Bank charges of Rs.70 on 31st March, 2015 are not entered in the Cash Book.
iii. A bill for Rs.5,500 discounted with the bank is entered in the Cash Book without recording the discount charges of Rs.270.
iv. Cheques totaling Rs.16,720 were issued by the company and duly recorded in the Cash Book before 31st March, 2015 but had not been presented at the Bank for payment until after that date.
v. On 25th March, 2015, a debtor paid Rs.1,000 into the Company’s Bank in settlement of his account but no entry was made in the Cash Book of the company in respect of this.
vi. No entry has been made in the Cash Book to record the dishonor on 15th March, 2015, of a cheque for Rs.550 received from Ram Babu. Prepare a Bank Reconciliation Statement as on 31st March, 2015.
Solution:

Question 11.
Prepare Bank Reconciliation Statement from the following particulars on 31st July, 2015:
i. Balance as per the Pass Book Rs.50,000.
ii. Three cheques for Rs.6,000, Rs.3,937 and Rs.1,525 issued in July, 2015 were presented for payment to the bank in August, 2015.
iii. Two cheques of Rs.500 and Rs.650 sent to the bank for collection were not entered in the Pass Book by 31st July, 2015.
iv. The bank charged Rs.460 for its commission and allowed interest of Rs. 100 which were not mentioned in the Bank Column of the Cash Book.
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Question 12.

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Question 13.
Draw Bank Reconciliation Statement showing adjustment between your cash book and pass book as on 31st March, 2011:
i. On 31st March, 2011 your pass book showed a balance of Rs.6,000 to your credit.
ii. Before that date, you had issued cheques amounting to Rs.1,500 of which cheques of Rs.900 have been presented for payment.
iii. A cheque of Rs.800 paid by you into the bank on 29th March, 2011 is not yet credited pass book.
iv. There was a credit of Rs.85 for interest on Current Account in the pass book.
v. On 31st March, 2011 a cheque for Rs.510 received by you and was paid into bank the same was omitted to be entered in cash book.
(MSE Chandigarh 2012)
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Question 14.

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Question 15.
From the following particulars, prepare a Bank Reconciliation Statement of Govil as on 31st March, 2015: Balance as per Pass Book on 31st March, 2015 is Rs.8,500. Rs.5,100 were issued during the month of March but out of these, cheques for Rs.1,200 were presented in the month of April, 2015 and one cheque for Rs.200 was not presented for payment. Cheque and cash amounting to Rs.4,800 were deposited in the bank during March but credit was given for Rs.3,800 only. A customer had deposited Rs.800 into the bank directly. The bank has credited Covil for Rs.200 as interest and has debited him for Rs.90 as bank charges, for which there are no corresponding entries in the Cash Book.
Solution:

Question 16.
Bank Statement of a customer shows bank balance of 62,000 on 31st March, 2015. On comparing it with the Cash Book the following discrepancies were noted:
i. Cheques were paid into the bank in March but were credited in April: P-Rs. 3,500; Q-Rs.2,500; R-Rs.2,000.
ii. Cheques issued in March were presented in April: X-Rs. 4,000; Q-Rs. 4,500.
iii. Cheque for Rs.1,000 received from a customer entered in the Cash Book but was not banked.
iv. Pass Book shows a debit of Rs.1,000 for bank charges and credit of Rs.2,000 as interest.
v. Interest on investment Rs.2,500 collected by the bank appeared in the Pass Book. Prepare Bank Reconciliation Statement showing the balance as per Cash Book on 31st March, 2015.
(MSE Chandigarh 2003, Modified)
Solution:

Question 17.
On 1st January, 2015, Naresh had an overdraft of Rs. 40,000 as shown by his Cash Book in the bank column. Cheques amounting to Rs.10,000 had been deposited by him but were not collected by the bank by 1st January, 2015. He issued cheques of Rs.7,000 which were not presented to the bank for payment up to that day. There was also a debit in his Pass Book of Rs.600 for interest and Rs. 500 for bank charges. Prepare a Bank Reconciliation Statement.
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Question 18.
On 31st March, 2015, Cash Book of B. Babu showed an overdraft of Rs.18,000 with the Bank of India. This balance did not agree with the balance as shown by the Bank Pass Book. You find that Babu had paid into the bank on 26th March, four cheques for Rs.10,000, Rs.12,000, Rs.6,000 and Rs.8,000. Out of these the cheque for Rs.6,000 was credited by the bank in April, 2015. Babu had issued on 24th March three cheques for Rs.15,000, Rs.12,000 and Rs.7,000. The first two cheques were presented to the bank for payment in March, 2015 and the third cheque in April, 2015.
You also find that on 31st March, 2015 the bank had debited Babu’s Account with Rs.500 for interest and Rs.20 as charges, but Babu had not recorded these amounts in his books. Prepare Bank Reconciliation Statement as on 31st March, 2015 and ascertain the balance as per Bank Pass Book.
Solution:

Question 19.
On 31st March, 2015, Cash Book of a merchant showed bank overdraft of Rs.1,72,985. On comparing the Cash Book with Bank Statement, following discrepancies were noted:
i. Cheques issued for Rs.60,000 were not presented in the bank till 7th April, 2015.
ii. Cheques amounting to Rs.75,000 were deposited in the bank but were not collected.
iii. A cheque of Rs.15,000 received from Mahesh Chand and deposited in the bank was dishonored but the non-payment advice was not received from the bank till 1st April, 2015.
iv. Rs.1, 50,000 being the proceeds of a bill receivable collected appeared in the Pass Book but not in the Cash Book.
v. Bank charges Rs.1,500 and interest on overdraft Rs.8,500 appeared in the Pass Book but not in the Cash Book.
Prepare Bank Reconciliation Statement and show what balance the Bank Pass Book would indicate on 31st March, 2015.
Solution:

Question 20.
Prepare Bank Reconciliation Statement from the following: On 31st March, 2015, a merchant’s Cash Book showed a credit bank balance of 10,500 but due to the following reasons the Pass Book showed a difference:
i. A cheque of Rs.540 issued to Mohan has not been presented for payment.
ii. A post-dated cheque for Rs.100 has been debited in the bank column of the Cash Book but under no circumstances was it possible to present it.
iii. Four cheques of Rs.1,200 sent to the bank have not been collected so far. A cheque Rs.400 deposited in the bank has been dishonoured.
iv. As per instructions, the bank paid Rs.50 as Fire Insurance premium but the entry has not been made in the Cash Book.
v. There was a debit in the Pass Book of Rs.15 in respect of bank charges and a credit of Rs.25 for interest on Current Account but no record exists in the Cash Book.
Solution:

Question 21.
Tiwari and Sons find that the bank balance shown by their Cash Book on 31st March, 2015 is Rs.40,500 (credit) but the Pass Book shows a difference due to the following reasons:
i. A cheque for Rs.5,000 drawn in favour Manohar has not yet been presented for payment.
ii. A post-dated cheque for Rs.900 has been debited in the bank column of the Cash Book.
iii. Cheques totaling Rs.10,200 deposited with the bank have not yet been collected and a cheque for Rs.4,000 has been dishonoured.
iv. A bill for 10,000 was retired by the bank under a rebate of 150 but the full amount of the bill was credited in the bank column of the Cash Book.
Prepare a Bank Reconciliation Statement and find out the balance as per the Pass Book.
(KVS 2005, Modified)
Solution:

Question 22.
From the following particulars of a trader, prepare a Bank Reconciliation Statement 31st March, 2015:
i. Bank overdraft as per Cash Book Rs.52,100.
ii. During the month, the total amount of cheques for Rs.94,400 were deposited into the bank but of these, one cheque for Rs.11,160 has been entered into the Pass Book on 5th April
iii. During the month, cheques for Rs.89,580 were drawn in favour of creditors. Of them, one creditor for Rs.38,580 encashed his cheque on 7th April whereas another for Rs.4,320 have not yet been encashed.
iv. As per instructions the bank on 28th March paid out 10,500 to a creditor but by mistake, the same has not been entered in the Cash Book.
v. According to agreement, on 25th March, a debtor deposited directly into the Rs.9,000 but the same has not been recorded in the Cash Book.
vi. In the month of March, the bank without any intimation, debited his account for Rs.120 as bank charges and credited the same for Rs.180 as interest.
Solution:

Question 23.
Prepare Bank Reconciliation Statement from the following particulars as on 31st March, 2015, when Pass Book shows a debit balance of Rs.2,500:
i. Cheque issued for Rs.5,000 but up to 31st March, 2015 only Rs.3,000 could be cleared.
ii. Cheques issued for Rs.1,000 but omitted to be recorded in the Cash Book.
iii. Cheques deposited for Rs.5,500 but cheques for Rs.500 were collected on 4th April, 2015.
iv. A discounted Bill of Exchange dishonoured Rs.1,000.
v. A Rs.500 debited in Cash Book but omitted to be banked.
vi. Interest allowed by bank Rs.200 but no entry was passed in the Cash Book.
(Delhi 2002, Adapted)
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Question 24.

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Question 25.
On 31st March, 2015, Bank Pass Book of Naresh and Co. showed an overdraft of Rs.10,700. From the following particulars, prepare Bank Reconciliation Statement:
i. Cheques issued before 31st March, 2015 but presented for payment after that date amounted to Rs.900.
ii. Cheques paid into the bank but not collected and credited until 31st March, 2015 amounted to Rs.2,200.
iii. Interest on overdraft amounting to Rs.1,200 did not appear in the Cash Book.
iv. Rs.5,000 being interest on investments collected by the bank and credited in the Pass Book were not shown in the Cash Book.
v. Bank charges of Rs.50 were not entered in the Cash Book.
vi. Rs.800 in respect of dishonoured cheque were entered in the Pass Book but not in the Cash Book.
Solution:

Question 26.
On 31st March, 2015, Pass Book of Shri Bhama Shah shows debit balance of Rs.10,000. From the following particulars, prepare Bank Reconciliation Statement:
i. Cheques amounting to Rs.8,000 drawn on 25th March of which cheques of Rs.5,000 cashed in April, 2015.
ii. Cheques paid into bank for collection of Rs.5,000 but cheques of Rs.2,200 could only be collected in March, 2015.
iii. Bank charges Rs.25 and dividend of Rs.350 on investment collected by bank could not be shown in the Cash Book.
iv. A cheque of Rs.600 debited in the Cash Book omitted to be banked.
(Delhi 2005, Modified)
Solution:

Question 27.
On checking the Bank Pass Book it was found that it showed an overdraft of Rs. 5,220 as on 31st March, 2015, while as per Ledger it was different. The following differences were noted:
i. Cheques deposited but not yet credited by the bank Rs.6,000.
ii. Cheques dishonoured and debited by the bank but not given effect to it in the Ledger Rs.800.
iii. Bank charges debited by the bank but Debit Memo not received from the bank Rs.50.
iv. Interest on overdraft excess credited in the Ledger Rs.200.
v. Wrongly credited by the bank to account, deposit of some other party Rs.900.
vi. Cheques issued but not presented for payment Rs.400.
(Delhi 2001, Modified)
Solution:

Question 28.
Prepare Bank Reconciliation Statement from the following particulars as on 31st 2015 when Pass Book shows a debit balance of Rs.2,500:
i. Cheque issued for Rs.5,000 but up to 31st March, 2015 only 3,000 could be cleared.
ii. Cheques deposited for Rs.5,500 but cheques of Rs.500 were collected on 10th April, 2015.
iii. A discounted bill of exchange dishonoured Rs.2,000.
iv. A cheque of Rs.300 debited in Cash Book but omitted to be banked.
v. Interest allowed by bank Rs.400 but no entry was passed in the Cash Book.
(KVS 2004, Modified)
Solution:

Question 29.
From the following particulars, you are required to ascertain the bank balance as appear in the Cash Book of Ramesh as on 31st October, 2014:
i. Bank Pass Book showed an overdraft of Rs.16,500 on 31st October.
ii. Interest of Rs.1,250 on overdraft up to 31st October, 2014 has been debited in the Pass Book but it has not been entered in the Cash Book.
iii. Bank charges debited in the Bank Pass Book amounted to Rs.35.
iv. Cheques issued prior to 31st October, 2014 but not presented till that date, amounted, to Rs.11,500.
v. Cheques paid into bank before 31st October, but not collected and credited up to date, were for Rs.2,500.
vi. Interest on investment collected by the bankers and credited in the Bank Pass amounted to Rs.1,800.
(KVS 2003, Modified)
Solution:

Question 30.

Solution:

Question 31.
Prepare Bank Reconciliation Statement as on 31st March, 2015 from the following particulars :
i. R’s overdraft as per Pass Book Rs.12,000 as on 31st March.
ii. On 30th March, cheques had been issued for Rs.70,000 of which cheques amounting Rs.3,000 only had been encashed up to 31st March.
iii. Cheques amounting to Rs.3,500 had been paid into the bank for collection but of these only 500 had been credited in the Pass Book.
iv. Bank has charged Rs.500 as interest on overdraft and the intimation of which has been received on 2nd April, 2015.
v. Bank Pass Book shows credit for Rs.1,000 representing Rs.400 paid by debtor of R direct into the bank and Rs.600 collected directly by the bank in respect of interest on R’s investment. R had no knowledge of these items.
vi. A cheque for Rs.200 has been debited in the bank column of Cash Book by R but it was not sent to the bank at all.
Solution:

Question 32.
Prepare Bank Reconciliation Statement from the following particulars and show balance as per Cash Book:
i. Balance as per Pass Book on 31st March, 2015 overdrawn Rs.10,000.
ii. Cheques drawn in the last week of March, 2015 but not cleared till 3rd April, 2015 Rs.20,000.
iii. Interest on bank overdraft not entered in the Cash Book Rs.1,500.
iv. Cheques of Rs.20,000 deposited in the bank in March, 2015 but not collected and credited till 3rd April, 2015.
v. Rs.100 insurance premium paid by the bank under a standing order has not been entered in the Cash Book.
Solution:

Question 33.
Bank Pass Book of Mr. X showed an overdraft of Rs.33,575 on 31st March, 2015. On going through the Pass Book the accountant found the following:
i. A cheque of Rs.1,080 credited in the Pass Book on 28th March, being dishonoured is debited again in the Pass Book on 1st April, 2015. There was no entry in the Cash Book about the dishonour of the cheque until 15th April.
ii. Bankers had credited his account with Rs.2,800 for interest collected by them on his behalf but the same had not been entered in his Cash Book.
iii. Out of Rs.20,500 paid in by Mr. X in cash and by cheques on 31st March, cheques amounting to Rs.7,500 were collected on 7th April.
iv. Out of cheques amounting to Rs.7,800 drawn by him on 27th March, a cheque for Rs.2,500 was encashed on 3rd April.
Prepare Bank Reconciliation Statement on 31st March, 2015.
Solution:

Question 34.

Solution:

Question 35.
From the following information, prepare Bank Reconciliation Statement as on 31st March, 2015:
i. Debit balance shown by Pass Book Rs.17,800.
ii. Cheques of Rs.21,600 were issued in the last week of March but only cheques of Rs.14,800 were presented for payment.
iii. Cheques of Rs.10,750 were presented to the bank. Out of them, a Rs.4,200 was credited in the first week of April, 2015.
iv. A cheque of Rs.1,200 was debited in the cash book but was not presented in the bank.
v. Insurance premium paid by bank Rs.1,450.
vi. A bill of exchange of Rs.6,200 which discounted with the same was dishonoured but no entry was made in the cash book.
vii. Bank charges, charged by the bank Rs.350.
(MSE Chandigarh 2011, Modified)
Solution:

Question 36.

Solution:

Question 37.
From the following particulars, ascertain the bank balance as per Pass Book 31st March, 2015 (a) without correcting the Cash Book balance and (b) after correcting the Cash Book balance:
i. The bank balance as per Cash Book on 31st March, 2015 Rs. 40,000.
ii. Cheques issued but not encashed up to 31st March, 2015 amounted to Rs.10,000.
iii. Cheques paid into the bank, but not cleared up to 31st March, 2015 amounted to Rs.15,000.
iv. Interest on investments collected by the bank but not entered in the Cash Book Rs.500.
v. Cheques deposited in the bank but not entered in the Cash Book Rs.12,500.
vi. Bank charges debited in the Pass Book but not entered in the Cash Book Rs.100.
Solution:

Question 38.

Solution:

Question 39.


Solution:

TS Grewal Solutions for Class 11 Accountancy Chapter 13 – Depreciation

TS Grewal Class 11 SolutionsNCERT Solutions AccountancyNCERT Solutions

Question 1.
On 1st April, 2012, Shri Ram purchased a machinery costing Rs.40,000 and spent Rs.5,000 on its erection. The estimated effective life of the machinery is 10 years with a scrap valued of Rs.5,000. Calculate the Depreciation on the Straight Line Method and show the Machinery Account of first three years. Accounting year ends on 31st March every year.
Solution:

Question 2.
On 1st April, 2011, a merchant purchased a furniture costing Rs.55,000. It is estimated that its life is 10 years at the end of which it will be sold for Rs.5,000. Additions are made 1st April, 2012 and 1st October, 2014 to the value of Rs.9,500 and Rs.8,400 (Residual values Rs.500 and Rs.400 respectively).
Show the Furniture Account for the first four years, Depreciation A/c is written off according to the Straight Line Method.
Solution:

Question 3.
On 1st April, 2011, A Ltd. purchased a machine for Rs.2,40,000 and spent Rs.10,000 on its erection. On 1st October, 2011, an additional machinery costing Rs.1,00,000 was purchased. On 1st October, 2013 the machine purchased on 1st April, 2011 was sold for Rs.1,43,000 and on the same date, a new machine was purchased at a cost of Rs.2,00,000.
Show the Machinery Account for the first four financial years after charging Depreciation at 5% p.a. by the Straight Line Method.
Solution:

Question 4.
From the following transactions of a concern, prepare the Machinery Account for ended 31at March, 2015:
1st April, 2014: Purchased second-hand machinery for Rs.40,000.
1st April, 2014: Spent Rs.10,000 on repairs for making it serviceable.
30th September, 2014: Purchased additional new machinery fort 20,000.
31st December, 2014: Repairs and renewals of machinery Rs.3,000.
31st March, 2015 :Depreciate the machinery at 10% p.a.
Solution:

Question 5.
An asset was purchased for Rs.10,500 on 1st April, 2009. The scrap value was estimated be Rs.500 at the end of asset’s 10 years’ life. Straight Line Method of depreciation was used.
The accounting year ends on 31st March. The asset was sold for Rs.600 on 31st March, 2016. calculate the following:
a. The Depreciation expense for the year ended 31st March, 2010.
b. The net book value of the asset on 31st March, 2014.
c. The gain or loss on sale of the asset on 31st March, 2016.
Solution:

Question 6.
Modern Ltd. purchased machinery on 1st JulyRs.60,000. On 1st October, 2004 based another machine for Rs.20,000. On 30th June, 2005, it sold the first machine hosed in 2003 fort Rs.38,500. Depreciation-is provided at 20% p.a. on the original cost year. Accounts are closed on 31st March every year. Prepare the Machinery A/c for three year.
Solution:

Question 7.
On 1st July. 2010, Sohan Lal and Sons purchased a plant costing Rs.60,000. Additional plant was purchased on 1st January, 2011 for Rs.40,000 and on 1st October, 2011, for Rs.20,000. On 1st April, 2012, one-third of the plant purchased on 1st July, 2010, was found to have become obsolete and was sold for Rs.6,000.
Prepare the Plant Account for the first three years in the books of Sohan Lal and Sons. Depreciation is charged @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year.
Solution:

Question 8.
A Van was purchased on 1st April, 2010 for Rs.60,000 and Rs.5,000 was spent on its repair and registration. On 1st October, 2011 another van was purchased for Rs.70,000. On 1st April, 2012, the first van purchased on 1st April, 2000 was sold for Rs.45,000 and a new van costing Rs.1,70,000 was purchased on the same date. Show the Van Account from 2010 – 2011 to 2012-13 on the basis of Straight Line Method, if the rate of Depreciation charged is 10% p.a. Assume that books are closed on 31st March every year.
Solution:

Question 9.
Company whose accounting year is a financial year, purchased on 1st July, 2003 machinery costing Rs.30,000. It purchased further machinery on 1st January. 2004 costing Rs.20,000 and on let October, 2004 costing Rs.10,000. On 1st April, 2005 one-third of the machinery installed on 1st July. 2003 became obsolete, and was sold for Rs.3,000.
Show how machinery Account would appear in the books of the company. It being given that machinery was depreciated by fixed installment Method at 10% p.a. What would be the value of Machinery Account on 1st April, 2006?
Solution:

Question 10.

Solution:

Question 11.
A firm purchased a second-hand machine on 1st April, 2011 and paid Rs.1,40,000 for it spent on its overhauling and installation Rs.20,000. On 1st October, 2011, another costing Rs.80,000 was purchased. On 1st October, 2013 the machine purchased on 1st April 2011 was disposed off for Rs.1,04,000 and a new machine costing Rs.2,00,000 was Depreciation was provided 10% p.a. by the Straight Line Method. Give the Account and Depreciation Account for 3 years. Firm’s books are closed on 31st March.
Solution:

Question 12.

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Question 13.

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Question 14.
Following balances appear in the boobs of X Ltd. as on 1st April. 2001:
Machinery Account = Rs.5,00,000
Provision for Depreciation = Rs.2,25,000
The machinery is depreciated at 10% p.a. on the Fixed Installment Method. The accounting being April-March. On 1st October, 2001, a machinery which was purchased on, 1998 for Rs.1,00,000 was sold for Rs.42,000 and on the same date a new machine was purchased for Rs.2,00,000. Prepare Machinery Account and Provision for Depreciation A/c for the year ended 31st March. 2002.
Solution:

Question 15.

Solution:

Question 16.
The original cost of furniture amounted to Rs.4,000 and it is decided to write off 5% on the cost as Depreciation at the end of each year. Shows the Ledger Account as it will appear during the first four years. Show also how the same account will appear if it was write off 5% on the diminishing balance of the asset each year.
Solution:

Question 17.
A boiler purchased from abroad for Rs.10,000;shipping and forwarding charges Rs.2,000, Import duty Rs.7,000 and expenses of installation amounted to Rs.1,000.
Calculate the Depreciation for the first three years (separately for each year) @ 10% on diminishing Method.
Solution:

Question 18.
Babu purchased on 1st April, 2006, a machine fort Rs.6,000. On 1st October, 2006, he also purchased another machine for Rs.5,000. On 1st October, 2007, he sold the machine on 1st April, 2006 for Rs.4,000.
It was decided that Depreciation @10% p.a. was to be written off every year under diminishing Balance Method.
Assuming the accounts were closed on 31st March every year, show the machinery Account for the years ended 31st March,2007 and 2008.
Solution:

Question 19.
Kaushal Traders purchased second-hand machinery on 1st April, 2006 for Rs.23,000 and spent Rs.2,000 in its repair. It was decided to depreciate the machinery @20% every year on 31st March at Diminishing Balance Method.
Prepare the Machinery Account from years ended 31st March, 2007 to 2009 and show Profit or Loss as it was sold on 31st March 2009 for Rs.10,800.
Solution:

Question 20.
X bought a machine for Rs.25,000 on which he spent Rs.5,000 for carriage and freight, Rs.1,000 for brokerage of the middleman, Rs.3,500 for installation and Rs.500 for an iron pad. Machine is depreciated @ 10% every year on Written Down Value basis. After three years, the machine was sold to Y for Rs.30,500 and Rs.500 was paid as commission to the broker through whom the sale was effected. Find out the profit and loss on sale of machine.
Solution:

Question 21.
A company purchased machinery for Rs.50,000 on 1st October, 2008. Another machinery costing Rs.10,000 was purchased on 1st December, 2009. On 31st March, 2010, the machinery purchased in 2008 was sold at a loss of Rs.5,000. The company charges depreciation at the rate of 15% p.a. on Diminishing Balance Method. Accounts are closed 31st March every year. Prepare the Machinery Account for 3 years.
Solution:

Question 22.
On 1st April, 2005, machinery was purchased for Rs.20,000. On 1st October, 2006 another machine was purchased for Rs.10,000 and on 1st April, 2007, one more machine was purchased for Rs.5,000. The firm depreciates its machinery @ 10% on the Diminishing Balance Method. What is the amount of Depreciation for the years ended 31st March, 2006; 2007 and 2008?
What will be the balance in Machinery Account as on 31st March, 2008?
Solution:

Question 23.
A Machinery was purchased for Rs.1,80,000 on 1st July, 2011. Depreciation was charged annually @ 10% on Diminishing Balance Method. 1/4th of this Machinery was sold on 1st October, 2013 for 36,000. Prepare Machinery A/c from the year ended 31st March, 2012 to 2014, if the books are closed on 31st March every year.
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Question 24.
Astha Engineering Works purchased a machine on 1st July, 2011 for Rs.1, 80,000 and spent Rs.20,000 on its installation.
On 1st April, 2012, it purchased another machine for Rs.2,40,000. On 1st October, 2013, the machine purchased on 1st July, 2011 was sold for Rs.1,45,000. On 1st January, 2014 another machine was purchased for Rs.4,00,000.
Prepare the Machine Account for years ended 31st March, 2012 to 2014 after charging Depreciation @10% p.a. by Diminishing Balance Method.
Accounts are closed on 31st March every year.
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Question 25.
A firm purchased on 1st April 2008 certain machinery for Rs.5,82,000 and spent Rs.18,000 on its erection. On 1st October, 2008, additional machinery costing Rs.2,00,000 was purchased.
On 1st October, 2010, the machinery purchased on 1st April, 2008 was auctioned for Rs.2,86,000 and a new machinery for Rs.4,00,000 was purchased on the same date. Depreciation was provided annually on 31st March at the rate of 10% on the Written Down Value Method. Prepare the Machinery Account for the years ended 31st March, 2009 to 2011.
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Question 26.
M/s. P and Q purchased machinery for Rs.40,000 on 1st October, 2013. By Depreciation is provided @10% p.a. on the Diminishing Balance. On 31st January, 2015, one-fourth of the machinery was found unsuitable and disposed off for Rs.5,600. On the same date new machinery at a cost of Rs.15,000 was purchased. Write up the Machinery Account for the years ended 31st March, 2014 and 2015. The accounts are closed on 31st March.
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Question 27.
Shakti Cements purchased on 1st April, 2013 a plant for Rs.80,000. On 1st July, 2014 it purchased additional plant costing Rs.48,000. On 1st December, 2015 the plant purchased on 1st April, 2013 was sold for Rs.42,000 and on the same date a fresh plant was purchased for Rs.75,000. Depreciation is provided at 10% p.a. on the Diminishing Balance Method. Accounts are closed on 31st March each year. Show the Plant Account for 3 years (along with working notes).
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Question 28.
A company purchased on 1st July, 2011 machinery costing Rs.30,000. It further purchased machinery on 1st January, 2012 costing Rs.20,000 and on 1st October, 2012 costing Rs.10,000. On 1st April, 2013 one-third of the machinery installed on 1st July, 2011 became obsolete and was sold for Rs.3,000.
The company follows financial year as accounting year.
Show how the Machinery Account would appear in the books of company if depreciation is charged @ 10% p.a. on Written Down Value Method.
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Question 29.
On 1st October, 2010, Meenal Sharma bought a machine for Rs.25,000 on which he spent Rs.5,000 for carriage and freight; Rs.1,000 for brokerage of the middle-man, Rs.4,000 for installation. The machine is depreciated @ 10% p.a. on written down value basis. On 31st March, 2013 the machine was sold to Deepa for Rs.30,500 and Rs.500 was paid as commission to broker through whom the sales was affected. Find out the profit or loss on sale of machine if accounts are closed on 31st March, every year.
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Question 30.

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Question 31.

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Question 32.

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Question 33.
On 1st October, 2011, X Ltd. purchased a machinery for Rs.2,50,000. A part of machinery which was purchased for Rs.20,000 on 1st October, 2011 became obsolete and was disposed off on 1st January, 2014 (having a book value Rs.17,100 on 1st April, 2013) for Rs.2,000. Depreciation is charged @10% annually on written down value. Prepare machinery disposal account and also show your workings. The books being closed on 31st March of every year.
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Question 34.
Sharma and Co. whose books are closed on 31st March, purchased machinery for Rs.1, 50,000 on 1st April, 2005, Additional machinery was acquired for Rs.50,000 on 1st October, 2005. Certain machinery which was purchased for Rs.50,000 on 1st October, 2005 was sold for Rs.40,000 on 30th September, 2007.
Prepare the Machinery Account and Accumulated Depredation Account for all the yeas up to the year ended 31st March, 2008. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.
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Question 35.
On 1st April, 2010 Amit Kumar purchased five machines for Rs.60,000 each. Depreciation @ 10% p.a. on initial cost has been charged from the Profit and Loss Account and credited to Provision for Depreciation Account.
On 1st April, 2011 one machine was sold for Rs.50,000 and on 1st April, 2012 another machine was sold for Rs.50,000. An improved model costing Rs.1,00,000 was purchased on 1st October, 2011. Amit Kumar closes his books on 31st March each year.
You are required to show:
(i) Machinery Account; (ii) Machinery Disposal Account and (iii) Provision for Depreciation Account for the period of three accounting years ended 31st March, 2013
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