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Standard XI

Accountancy

Journal & Ledger for Recording Profit or Loss

A firm purcha...

Question

A firm purchased a machine on 1st Jan 1998 for Rs. 37,000 and spent Rs. 3,000 on its installation. Depreciation is written off at the rate of 10% under WDV method. Accounts are closed on 31st December every year. On 30th June 2002, the machine was disposed off for Rs. 20,000. Profit & loss account shall be _ by _

credited by Rs. 20,000

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credited by Rs. 4,932

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debited by Rs. 4,932

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debited by Rs. 20,000

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Solution

The correct option is C
debited by Rs. 4,932

$\begin{matrix} Y e a r & V a l u e & D e p & W D V 1998 & 40000 & 4000 & 36000 1999 & 36000 & 3600 & 32400 2000 & 32400 & 3240 & 29160 2001 & 29160 & 2916 & 26244 30 / 06 / 2002 & 26244 & 1312 & 24932 \end{matrix}$

Loss = 24932 - 20000= Rs 4932

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The correct option is C debited by Rs. 4,932 YearValueDepWDV19984000040003600019993600036003240020003240032402916020012916029162624430/06/200226244131224932 Loss = 24932 - 20000= Rs 4932

The correct option is C
debited by Rs. 4,932

$\begin{matrix} Y e a r & V a l u e & D e p & W D V 1998 & 40000 & 4000 & 36000 1999 & 36000 & 3600 & 32400 2000 & 32400 & 3240 & 29160 2001 & 29160 & 2916 & 26244 30 / 06 / 2002 & 26244 & 1312 & 24932 \end{matrix}$

Loss = 24932 - 20000= Rs 4932