📖 generic · CBSE Class 11 English medium · ACCOUNTANCY · Page 45question

Creation of secret reserves within reasonable limits is justifiable on grounds of · Part 5

Chapter 7: Depreciation, Provisions and Reserves · ACCOUNTANCY

ended on March , , March , and March , . Also give the above two accounts if furniture disposal account is opened. (Ans. Loss on sale of furniture Rs.

, , , Balance of provision for depreciation account as on . . Rs. , .) .

M/s Lokesh Fabrics purchased a Textile Machine on April , for Rs. , , . On July , another machine costing Rs. , , was purchased .

The machine purchased on April , was sold for Rs. , on October , . The company charges depreciation @ % p.a. on straight line method.

Prepare machinery account and machinery disposal account for the year ended March , . (Ans. Loss on sale of Machine account Rs. , .

Balance of machine account as on . . Rs. , , ).

. The following balances appear in the books of Crystal Ltd, on Jan , Machinery account on , , Provision for depreciation account , , On April , a machinery which was purchased on January , for Rs. , , was sold for Rs. , .

A new machine was purchased on July , for Rs. , , . Depreciation is provided on machinery at % p.a. on Straight line method and books are closed on December every year.

Prepare the machinery account and provision for depreciation account for the year ending December , . (Ans. Profit on sale of Machine Rs. , .

Balance of machine account as on . . Rs. , , .

Balance of Provision for depreciation account as on . . Rs. , , ).

. M/s. Excel Computers has a debit balance of Rs. , (original cost Rs.

, , ) in computers account on April , . On July , it purchased another computer costing Rs. , , . One more computer was purchased on January , for Rs.

, . On April , the computer which has purchased on July , became obselete and was sold for Rs. , . A new version of the IBM computer was purchased on August , for Rs.

, . Show Computers account in the books of Excel Computers for the years ended on March , , , , and . The

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