HomeQ&AM/s Shnghania and Bros. purchase a plant for Rs. 5,00,000 on April, 01 2002, and spent Rs. 50,000 for its installation. The salvage value of the plant after its useful life of 10 years is estimated to be Rs. 10,000. Record journal entries for the year 2002-03 and draw up Plant Account and Depreciation Account for first three years given that the depreciation is charged using straight line method if : The books of account close on March 31 every year The firm charges depreciation to the assets account

M/s Shnghania and Bros. purchase a plant for Rs. 5,00,000 on April, 01 2002, and spent Rs. 50,000 for its installation. The salvage value of the plant after its useful life of 10 years is estimated to be Rs. 10,000. Record journal entries for the year 2002-03 and draw up Plant Account and Depreciation Account for first three years given that the depreciation is charged using straight line method if : The books of account close on March 31 every year The firm charges depreciation to the assets account

AccountancyClass 11CBSEAnswered 23 Jun 2026

Answer

Books of Sighania and Bros

Journal

Date	Particulars	L.F	Dr. Amount	Cr. Amount
2002 April1 Apr. 01 2003 Mar.31 Mar.31	Plant A/c Dr To Bank A/c (Being purchase plant for Rs. 5,00,000)		5,00,000 50,000 54,000 54,0000	5,00,000 50,000 54,000 54,000
2002 April1 Apr. 01 2003 Mar.31 Mar.31	Plant A/c Dr. To Bank A/c (Being expenses incurred on installation)		5,00,000 50,000 54,000 54,0000	5,00,000 50,000 54,000 54,000
2002 April1 Apr. 01 2003 Mar.31 Mar.31	Depreciation A/c Dr. To Plant A/c (Being Depreciation charged on assets)		5,00,000 50,000 54,000 54,0000	5,00,000 50,000 54,000 54,000
2002 April1 Apr. 01 2003 Mar.31 Mar.31	Profit & loss A/c Dr. To Depreciation A/c (Depreciation debited to profit and loss account		5,00,000 50,000 54,000 54,0000	5,00,000 50,000 54,000 54,000

Plant Account

Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		5,00,000 50,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		54,000 4,96,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		5,50,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		5,50,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		4,96,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		54,000 4,42,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		4,96,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		4,96,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		4,42,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		54,000 3,88,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		4,42,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d		4,42,000
2002 Apr.01 2003 Apr.01 2004 Apr.01 2005 Apr.01	Bank Bank (installation charges) Balance b/d Balance b/d Balance b/d		3,88,000	2003 Mar.31 2004 Mar. 31 2005 Mar.31	Depreciation Balance c/d Depreciation Balance c/d Depreciation Balance c/d

Depreciation Account

Date	Particulars	J.F	Amount	Date	Particulars	J.F	Amount
2003 Mar. 31 2004 Mar031 2005 Mar.31	Plant Plant Plant		54,000	2003 Mar. 31 2004 Mar031 2005 Mar.31	Profit and loss Profit and loss Profit and loss		54,000
2003 Mar. 31 2004 Mar031 2005 Mar.31	Plant Plant Plant		54,000	2003 Mar. 31 2004 Mar031 2005 Mar.31	Profit and loss Profit and loss Profit and loss		54,000
2003 Mar. 31 2004 Mar031 2005 Mar.31	Plant Plant Plant		54,000	2003 Mar. 31 2004 Mar031 2005 Mar.31	Profit and loss Profit and loss Profit and loss		54,000

Working Notes

Calculation of original cost

Purchase cost 5,00,000

Add: Installation charge 50,000

Original cost 5,50,000

Salvage value 10,000

Useful life 10 years

Rs. 5, 50,000 – Rs. 10,000

Depreciation amount = ------------------------------ = 5,40,000

Accountancy · Class 11

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