Depreciation - 2 | Accountancy Class 11 - Commerce PDF Download

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Q.17 A boiler was purchased from abroad for ? 10,000. Shipping and forwarding charges ? 2,000, Import 
duty ? 7,000 and expenses of installation amounted to ? 1,000. 
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing 
Balance Method. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
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Q.17 A boiler was purchased from abroad for ? 10,000. Shipping and forwarding charges ? 2,000, Import 
duty ? 7,000 and expenses of installation amounted to ? 1,000. 
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing 
Balance Method. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
Q.18 The original cost of furniture amounted to ? 4,000 and it is decided to write off 5% on the original 
cost as Depreciation at the end of each year. Show the Ledger Account as it will appear during the first 
four years. Show also how the same account will appear if it was decided to write off 5% p.a. on the 
diminishing balance of the asset each year. 
The solution can be presented as follows 
 
 
 
  
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Q.17 A boiler was purchased from abroad for ? 10,000. Shipping and forwarding charges ? 2,000, Import 
duty ? 7,000 and expenses of installation amounted to ? 1,000. 
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing 
Balance Method. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
Q.18 The original cost of furniture amounted to ? 4,000 and it is decided to write off 5% on the original 
cost as Depreciation at the end of each year. Show the Ledger Account as it will appear during the first 
four years. Show also how the same account will appear if it was decided to write off 5% p.a. on the 
diminishing balance of the asset each year. 
The solution can be presented as follows 
 
 
 
  
 
 
 
 
Q.19 Babu purchased on 1st April, 2017, a machine for ? 6,000. On 1st October, 2017, he also purchased 
another machine for ? 5,000. On 1st October, 2018, he sold the machine purchased on 1st April, 2017 for ? 
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, 2018 and 2019. 
 
 
 
 
 
 
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Q.17 A boiler was purchased from abroad for ? 10,000. Shipping and forwarding charges ? 2,000, Import 
duty ? 7,000 and expenses of installation amounted to ? 1,000. 
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing 
Balance Method. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
Q.18 The original cost of furniture amounted to ? 4,000 and it is decided to write off 5% on the original 
cost as Depreciation at the end of each year. Show the Ledger Account as it will appear during the first 
four years. Show also how the same account will appear if it was decided to write off 5% p.a. on the 
diminishing balance of the asset each year. 
The solution can be presented as follows 
 
 
 
  
 
 
 
 
Q.19 Babu purchased on 1st April, 2017, a machine for ? 6,000. On 1st October, 2017, he also purchased 
another machine for ? 5,000. On 1st October, 2018, he sold the machine purchased on 1st April, 2017 for ? 
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, 2018 and 2019. 
 
 
 
 
 
 
 
 
The solution can be presented as follows 
 
 
 
Working Note  
(1) Calculation of profit or loss on sale of machine:  
 
 
  
  
 
 
 
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Q.17 A boiler was purchased from abroad for ? 10,000. Shipping and forwarding charges ? 2,000, Import 
duty ? 7,000 and expenses of installation amounted to ? 1,000. 
Calculate the Depreciation for the first three years (separately for each year) @ 10% p.a. on Diminishing 
Balance Method. 
 
The solution can be presented as follows 
 
 
 
 
 
 
 
 
 
Q.18 The original cost of furniture amounted to ? 4,000 and it is decided to write off 5% on the original 
cost as Depreciation at the end of each year. Show the Ledger Account as it will appear during the first 
four years. Show also how the same account will appear if it was decided to write off 5% p.a. on the 
diminishing balance of the asset each year. 
The solution can be presented as follows 
 
 
 
  
 
 
 
 
Q.19 Babu purchased on 1st April, 2017, a machine for ? 6,000. On 1st October, 2017, he also purchased 
another machine for ? 5,000. On 1st October, 2018, he sold the machine purchased on 1st April, 2017 for ? 
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, 2018 and 2019. 
 
 
 
 
 
 
 
 
The solution can be presented as follows 
 
 
 
Working Note  
(1) Calculation of profit or loss on sale of machine:  
 
 
  
  
 
 
 
 
 
Q.20 X bought a machine for ? 25,000 on which he spent ? 5,000 for carriage and freight. ? 1,000 for 
brokerage of the middleman, ? 3,500 for installation and ? 500 for an iron pad. The machine is depreciated 
@ 10% p.a. on Written Down Value basis. After three years, the machine was sold to Y for ? 30,500 and ? 
500 was paid as commission to the broker through whom the sale was affected. Find out the profit and 
loss on sale of machine. 
The solution can be presented as follows