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Byju's Answer
Standard XI
Accountancy
Written down Value Method(WDV)
A vehicle acq...
Question

A vehicle acquired for Rs 60,000 on 1st September 2005 and depreciated at 20% on WDV was sold for Rs. 4,000 on 31st March 2011. Expenses of disposal was Rs. 200.
What is the gain or loss on disposal?


A

Rs. 600 gain

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B

Rs. 11,929 gain

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C

Rs. 11,929 loss

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D

None

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Solution

The correct option is C

Rs. 11,929 loss


Year Value Dep WDV
2005-06 60,000 12,000 48,000
2006-07 48,000 9,600 38,400
2007-08 38,400 7,680 30,720
2008-09 30,720 6,144 24,576
2009-10 24,576 4,915 19,661
2010-11 19,661 3,932 15,729


Loss
= Rs. 15,729 + Rs. 200 - Rs. 4,000
= Rs. 11,929


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Q.

A machine acquired for Rs. 3,60,000 on 1st April 2006 and depreciated at 10% on WDV was sold for Rs. 3,00,000 on 31st March 2009. Depreciation is time apportioned. Expenses of disposal amounted to Rs. 3,000.
What is the gain or loss on disposal of the machine to be reported in?


Q.

M/s Sagar Limited purchased a machinery for Rs 3,00,000 on 1st April 2008 additional machinery was acquired for Rs 3,00,000 on 30th September 2009 and for Rs 50,000 on 1st April 2011.
Machinery which was purchased on 30th September 2009 was sold for Rs 2,25,000 on 30th September 2011
You are required to give Machinery Account Depreciation Account for the year ended 31st March 2009, 31st March 2010, 31st March 2011, and 31st March 2012, taking into account depreciation @ 10% p.a. on written down value method

Q. Sharma & Co. whose books are closed on 31st March, purchased a machinery for ₹ 1,50,000 on 1st April, 2015, Additional machinery was acquired for ₹ 50,000 on 1st October, 2015. Certain machinery which was purchased for ₹ 50,000 on 1st October, 2015 was sold for ₹ 40,000 on 30th September, 2017.

Prepare the Machinery Account and Accumulated Depreciation Account for all the years up to the year ended 31st March, 2018. Depreciation is charged @ 10% p.a. on Straight Line Method. Also, show the Machinery Disposal Account.
Q.

A fixed asset costing Rs. 12,000 was sold for Rs. 5,000. At the date of disposal, it's net book value is Rs. 2,000.
What is the profit or loss on disposal of this fixed asset?


Q.

On 1st April 2014, X Ltd purchased a machinery for Rs.12,00,000. On 1st October 2016 a part of the machinery purchased on 1st April 2014 for Rs. 80,000 was sold for Rs. 45,000 and a new machinery at the cost of Rs. 1,58,000 was purchased and installed on the same date. The company has adopted the method of providing 10 % per annum depreciation on the diminishing balance of the machinery.

Show the necessary ledger accounts assuming that provision for depreciation account and machinery disposal account is maintained. The accounting year ends on 31st March.

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