DK Goel Solutions Chapter 16 Depreciation

DK Goel Accountancy Class 11 Solutions Chapter 16 Depreciation which is outlined by expert Accountancy teachers from the latest version of DK Goel Class 11 Accountancy books. We at BYJU’S provide DK Goel Solutions to assist students to comprehend all the theories in particular. There are numerous concepts in Accountancy, but the concepts of Trial Balance, Depreciation and Bank Reconciliation Statement (BRS) are required.

DK Goel Accountancy Class 11 Solutions – Chapter 16

Question 1

Mention the methods of providing or allocating depreciation.

Answer: Methods of providing or allocating depreciation are mentioned below:

  • Straight line method
  • Written down method
  • Annuity method
  • Depreciation fund method
  • Insurance policy method
  • Revaluation method
  • Depletion method
  • Machine hour rate method

Question 2

On April 1st 2009, Atul glass limited purchased a machine for ₹. 90,000/- and spent ₹. 6,000/- on its carriage and ₹. 4,000/- on its erection. On the date on the purchase, it was estimated that the effective life of the machine will be 10 years and after 10 years, its scrap value will be ₹. 20,000/-.

Prepare Machine a/c and Depreciation a/c for 4 years after providing depreciation on Fixed Instalment Method. Accounts are closed on 31st March every year.

Solution:

As the rate of depreciation is not provided in the question, the amount of annual depreciation will be arrived as under:

Annual Depreciation = \(\frac{Cost\, of\, Asset – Scrap\, Value}{Estimated\, life\, of\, Asset}\)

= \(\frac{1,00,000\, -\, 20,000}{10\, years}\)

Rate of Depreciation = \(\frac{Amount\, of \, Depreciation}{Total\, Cost\, of\, Asset}\)

= \(\frac{8,000}{1,00,000}\, \times 100\, =\, 8\%\)

Dr. Machine a/c Cr.

Date

Particulars

Date

Particulars

2009

2010

April 1

To Bank a/c

90,000

Mar 31

By Depreciation a/c

(8% on 1,00,000)

8,000

April 1

To Bank a/c (expenses)

6,000

Mar 31

By Balance c/d

92,000

April 1

To Bank a/c (expenses)

4,000

1,00,000

1,00,000

2010

2011

April 1

To Balance b/d

92,000

Mar 31

By Depreciation a/c

(8% on 1,00,000)

8,000

Mar 31

By Balance c/d

84,000

92,000

92,000

2011

2012

April 1

To Balance b/d

84,000

Mar 31

By Depreciation a/c

(8% on 1,00,000)

8,000

Mar 31

By Balance c/d

76,000

84,000

84,000

2012

2013

April 1

To Balance b/d

76,000

Mar 31

By Depreciation a/c

(8% on 1,00,000)

8,000

By Balance c/d

68,000

76,000

76,000

2013

April 1

To Balance b/d

68,000

Dr. Depreciation a/c Cr.

Date

Particulars

Date

Particulars

2010

2010

Mar 31

To Machine a/c

8,000

Mar 31

By Statement of P & L

8,000

2011

2011

Mar 31

To Machine a/c

8,000

Mar 31

By Statement of P & L

8,000

2012

2012

Mar 31

To Machine a/c

8,000

Mar 31

By Statement of P & L

8,000

2013

2013

Mar 31

To Machine a/c

8,000

Mar 31

By Statement of P & L

8,000

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