Open App

Commerce Exam > Commerce Notes > Accountancy Class 11 > Depreciation - (Part - 6)

Depreciation - (Part - 6) | Accountancy Class 11 - Commerce PDF Download

Page No 14.53:

Question 26: Astha Engineering Works purchased a machine on 1st July, 2015 for ₹ 1,80,000 and spent ₹ 20,000 on its installation.

On 1st April, 2016, if purchased another machine for ₹ 2,40,000. On 1st October, 2017, the machine purchased on 1st July, 2015 was sold for ₹ 1,45,000 plus CGST and SGST @ 6% each. On 1st January, 2018, another machine was purchased for ₹ 4,00,000 plus IGST @ 12%.
Prepare the Machinery Account for the years ended 31st March, 2016 to 2018 after charging Depreciation @ 10% p.a. by Diminishing Balance Method. Accounts are closed on 31st March every year.
ANSWER:

Working Note:

(1) Calculation of profit or loss on sale of Machine I:
Depreciation - (Part - 6) | Accountancy Class 11 - Commerce
(2) Journal entry for purchase with GST

Page No 14.53:

Question 27: Following balances appear in the books of M/s. Amrit as on 1st April, 2018:

On 1st April, 2018, they decided to dispose off a machinery for ₹ 8,400 which was purchased on 1st April, 2014 for ₹ 16,000.
You are required to prepare the Machinery Account, Provision for Depreciation Account and Machinery Disposal Account for the year ended 31st March, 2019. Depreciation was charged at 10% p.a on Cost following Straight Line Method.
ANSWER:

Working Note

1. Calculation of profit or loss on Machine Sold:
Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

Page No 14.54:

Question 28: On 1st October, 2011, X Ltd. purchased a machinery for ₹ 2,50,000. A part of machinery which was purchased for ₹ 20,000 on 1st October, 2011 became obsolete and was disposed off on 1st January, 2014 (having a book value ₹ 17,100 on 1st April, 2013) for ₹ 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.
ANSWER:

Page No 14.54:

Question 29: Sharma & Co. whose books are closed on 31st March, purchased a machinery for ₹ 1,50,000 on 1st April, 2016, Additional machinery was acquired for ₹ 50,000 on 1st October, 2016. Certain machinery which was purchased for ₹ 50,000 on 1st October, 2016 was sold for ₹ 40,000 on 30th September, 2018.
Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st March, 2019. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.

ANSWER:

Working note
1. Calculation of Profit or Loss on sale of Machine II:
Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

The document Depreciation - (Part - 6) | Accountancy Class 11 - Commerce is a part of the Commerce Course Accountancy Class 11.

All you need of Commerce at this link: Commerce

	Accountancy Class 11 82 videos\|166 docs\|42 tests

Accountancy Class 11

82 videos|166 docs|42 tests

Join Course for Free

Top Courses for Commerce

View all

FAQs on Depreciation - (Part - 6) - Accountancy Class 11 - Commerce

1. What is depreciation in commerce?

Depreciation in commerce refers to the gradual decrease in the value of an asset over time due to wear and tear, obsolescence, or any other factors that may affect its usefulness or marketability.

2. How is depreciation calculated?

Depreciation can be calculated using various methods, such as straight-line depreciation, diminishing balance method, or units of production method. The most common method is the straight-line method, where depreciation is calculated by dividing the cost of the asset by its useful life.

3. What is the importance of depreciation in accounting?

Depreciation is important in accounting as it allows businesses to allocate the cost of an asset over its useful life. By recognizing depreciation expenses, businesses can accurately reflect the decrease in value of their assets and properly match the expenses with the revenue generated by those assets.

4. How does depreciation affect financial statements?

Depreciation affects financial statements by reducing the value of assets on the balance sheet and increasing expenses on the income statement. This reduction in asset value and increase in expenses can impact the profitability and overall financial position of a company.

5. Can depreciation be reversed or reversed?

No, depreciation cannot be reversed or reversed once it has been recorded. Once an asset's value is depreciated, it is considered a permanent reduction in value. However, if an asset is sold or disposed of, any remaining book value can be removed from the balance sheet.

Related Exams

Commerce

About this Document

	4.70/5 Rating
	Nov 08, 2024 Last updated

Document Description: Depreciation - (Part - 6) for Commerce 2024 is part of Accountancy Class 11 preparation. The notes and questions for Depreciation - (Part - 6) have been prepared according to the Commerce exam syllabus. Information about Depreciation - (Part - 6) covers topics like and Depreciation - (Part - 6) Example, for Commerce 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Depreciation - (Part - 6).

Introduction of Depreciation - (Part - 6) in English is available as part of our Accountancy Class 11 for Commerce & Depreciation - (Part - 6) in Hindi for Accountancy Class 11 course. Download more important topics related with notes, lectures and mock test series for Commerce Exam by signing up for free. Commerce: Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

Description

Full syllabus notes, lecture & questions for Depreciation - (Part - 6) | Accountancy Class 11 - Commerce - Commerce | Plus excerises question with solution to help you revise complete syllabus for Accountancy Class 11 | Best notes, free PDF download

Information about Depreciation - (Part - 6)

In this doc you can find the meaning of Depreciation - (Part - 6) defined & explained in the simplest way possible. Besides explaining types of Depreciation - (Part - 6) theory, EduRev gives you an ample number of questions to practice Depreciation - (Part - 6) tests, examples and also practice Commerce tests

	Accountancy Class 11 82 videos\|166 docs\|42 tests

Accountancy Class 11

82 videos|166 docs|42 tests

Join Course for Free

Download as PDF

Explore Courses for Commerce exam

Top Courses for Commerce

Explore Courses

Signup for Free!

Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.

Start learning for Free

10M+ students study on EduRev

Extra Questions

study material

Sample Paper

mock tests for examination

Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

Semester Notes

Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

video lectures

Important questions

Free

practice quizzes

Viva Questions

Exam

Objective type Questions

ppt

pdf

past year papers

MCQs

Previous Year Questions with Solutions

Depreciation - (Part - 6) | Accountancy Class 11 - Commerce

Summary

shortcuts and tricks

;

Additional Information about Depreciation - (Part - 6) for Commerce Preparation

Depreciation - (Part - 6) Free PDF Download

The Depreciation - (Part - 6) is an invaluable resource that delves deep into the core of the Commerce exam. These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective. With the help of these notes, you can grasp complex subjects quickly, revise important points easily, and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner, allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material, or toppers' notes, this PDF has got you covered. Download the Depreciation - (Part - 6) now and kickstart your journey towards success in the Commerce exam.

Importance of Depreciation - (Part - 6)

The importance of Depreciation - (Part - 6) cannot be overstated, especially for Commerce aspirants. This document holds the key to success in the Commerce exam. It offers a detailed understanding of the concept, providing invaluable insights into the topic. By knowing the concepts well in advance, students can plan their preparation effectively. Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.

Depreciation - (Part - 6) Notes

Depreciation - (Part - 6) Notes offer in-depth insights into the specific topic to help you master it with ease. This comprehensive document covers all aspects related to Depreciation - (Part - 6). It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation. Practice papers and question papers enable you to assess your progress effectively. Additionally, the paper analysis provides valuable tips for tackling the exam strategically. Access to Toppers' notes gives you an edge in understanding complex concepts. Whether you're a beginner or aiming for advanced proficiency, Depreciation - (Part - 6) Notes on EduRev are your ultimate resource for success.

Depreciation - (Part - 6) Commerce Questions

The "Depreciation - (Part - 6) Commerce Questions" guide is a valuable resource for all aspiring students preparing for the Commerce exam. It focuses on providing a wide range of practice questions to help students gauge their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation. The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level. Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.

Study Depreciation - (Part - 6) on the App

Students of Commerce can study Depreciation - (Part - 6) alongwith tests & analysis from the EduRev app, which will help them while preparing for their exam. Apart from the Depreciation - (Part - 6), students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc. The EduRev App will make your learning easier as you can access it from anywhere you want. The content of Depreciation - (Part - 6) is prepared as per the latest Commerce syllabus.

Education Revolution