Question

On 1st July, 2015, Sohan Lal & Sons purchased a plant costing ₹ 60,000. Additonal plant was purchased on 1st January, 2016 for ₹ 40,000 and on 1st October, 2016, for ₹ 20,000, paying CGST and SGST @ 6% each. On 1st April, 2017, one-third of the plant purchased on 1st July, 2015, was found to have become obsolete and was sold for ₹ 6,000, charging CGST and SGST @ 6% each.
Prepare the Plant Account for the first three years in the books of Sohan Lal & Sons. Depreciation is charged @ 10% p.a. on Straight Line Method. Accounts are closed on 31st March each year.

Answer 1

Books of Sohan Lal & Sons Plant Account
Dr.														Cr.
Date		Particulars			J.F.	Amount (Rs)	Date	Particulars				J.F.	Amount (Rs)
2015							2016
July 01		Bank (I)				60,000	March 31	Depreciation
								(I) for 9 months			4,500
2016								(II) for 3 months			1,000		5,500
Jan. 01		Bank (II)				40,000	March 31	Balance c/d
								(I)	55,500
								(II)	39,000				94,500
						1,00,000							1,00,000
2016							2017
April 01		Balance b/d					March 31	Depreciation
		(I)		55,500				(I)		6,000
		(II)		39,000		94,500		(II)		4,000
Oct. 01		Bank (III)				20,000		(III) for 6 months		1,000			11,000
							March 31	Balance c/d
								(I)		49,500
								(II)		35,000
								(III)		19,000			1,03,500
						1,14,500							1,14,500
2017							2017
April 01		Balance b/d					April 01	Bank					6,000
		(I)	49,500				April 01	Profit and Loss (loss)(16,500 – 6,000)					10,500
							2018
		(II)	35,000				March 31	Depreciation
		(III)	19,000			1,03,500		(I)		4,000
								(II)		4,000
								(III)		2,000			10,000
							March 31	Balance c/d
								(I)	29,000
								(II)	31,000
								(III)	17,000				77,000
						1,03,500							1,03,500

Working Notes

1. Calculation of Depreciation

2. Calculation of profit or loss on Sale of Plant I

Particulars	Amount (Rs)
1/3rd of Book Value of Plant I as on April 01, 2017( 49,500 × 1/3)	16,500
Less: Sale of Plant	(6,000)
Loss on Sale of Plant	10,500

3. Journal entries for purchase and sale with GST

Journal
Date	Particulars		L.F.	Debit Amount (₹)	Credit Amount (₹)
2016
Oct 01	Machinery A/c	Dr.		20,000
	Input CGST A/c	Dr.		1,200
	Input SGST A/c	Dr.		1,200
	To Bank A/c				22,400
	(Machinery purchased with CGST and SGST @ 6% each paid)
2017
Apr 1	Bank A/c	Dr.		6,720
	To Machinery A/c				6,000
	To Output CGST A/c To Output SGST A/c (Machinery purchased on 1st July, 2015 sold with CGST and SGST @ 6% each.)				360 360