AccountancyCLASS 11CBSE
answered 23 Jun 2026On Jan 01,2001 Jain & Sons purchased a second hand plant costing Rs.2,00,000 and spent Rs.10,000 on its overhauling. It also spent Rs.50,000 on transportation and installed of the plant. It was decided to provide for depreciation @ of 20% on written down value. The plant was destroyed by fire on July 31,2004 and an insurance claim of Rs.50,000 was admitted by the insurance company. Prepare plant account, accumulated depreciation account and plant disposal account assuming that the company closes its books on December 31, every year.
A.VERIFIED ANSWERfact-checked by tutors
Books of Jain & sons
Plant Account
Dr. Cr.
| Date | Particulars | J.F | Amount | Date | Particulars | J.F | Amount |
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,45,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 | ||
| 2001 Jan. 01 2002 Jan.01 2003 Jan.01 2004 Jan. 01 | Bank Balance b/d Balance b/d Balance b/d | 2,15,000 | 2001 Dec.31 2002 Dec.31 2003 dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2,15,000 |
Accumulated Depreciation account
Dr. Cr.
| Date | Particulars | J.F | Amount | Date | Particulars | J.F | Amount |
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 43,000 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 43,000 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 43,000 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 43,000 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 77,400 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 43,000 34,400 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 77,400 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 77,400 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 1,04,920 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 77,400 27,520 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 1,04,920 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 1,04,920 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 1,04,920 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 1,04,920 12,843 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 1,17,763 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 1,04,920 12,843 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 1,17,763 | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation | 1,17,763 | ||
| 2001 Dec.31 2002 Jan.01 2003 Dec.31 2004 Jul.31 | Balance c/d Balance c/d Balance c/d Plant disposal | 2001 Dec. 31 2002 Jan. 01 2003 Jan.01 Dec.31 2004 Jan.01 July.31 | Depreciation Balance b/d Depreciation Balance b/d Depreciation Balance b/d Depreciation |
Plant Disposal Account
Dr. Cr.
| Date | Particulars | J.F | Amount | Date | Particulars | J.F | Amount |
| 2004 Jul.31 | Plant | 2,15,000 | 2004 Jul.31 | Accumulated Depreciation Insurance Co. Profit & loss (Loss on Sale) | 1,17,763 50,000 47,237 | ||
| 2004 Jul.31 | Plant | 2,15,000 | 2004 Jul.31 | Accumulated Depreciation Insurance Co. Profit & loss (Loss on Sale) | 2,15,000 |
Working Notes
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 2,15,000 43,000 |
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 1,72,000 34,400 |
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 1,37,600 27,520 |
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 1,10,080 12,843 |
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 97,237 50,000 |
| Calculation of Deprecation Amount Original cost on 01.01.2001 (2,00,000 + 10,000 +5,000) Depreciation for the year 2001 (@20% of Rs.2,15,000) Depreciation for the year 2002 (@20% of Rs.1,72,000) Depreciation for the year 2003 (@20% of Rs.1,37,600) Depreciation till 31.07,04 (@20% of Rs.1,10,080) Insurance Claim Loss on disposal | 47,237 |