Solution: Solution: Question 12. To meet the legal requirement: To comply with the provisions of the Companies Act and Income Tax Act, it is necessary to charge depreciation. to make it easy and Convenient for you, here is a simplified way to read NCERT Solutions for Class 11 Chapter wise Online Download. NCERT 11th Class Students go to Attendance Annual Final Examination 2021, NCERT Standard XI Students Career Very Important  This Academic Year 2021, Standard XI Complete Students Start in your Collages Life, NCERT 12th Class Students get your new NCERT Class 11 Accountancy Solutions 2021 for Accountancy (Financial Accounting-I, Lekhashastra-I, Accountancy-II, Lekhashastra-II, Khatadari-I, Khatadari-II) Pdf Format Chapter Wise Download our Website. Consequently, the balance sheet will not reflect true and fair view of financial statements. Contents1 NCERT Solutions For Class 11 Financial Accounting – Depreciation, Provisions and Reserves1.1 Short Answer Type Questions1.2 Long Answer Type Questions1.3 Numerical Questions NCERT Solutions For Class 11 Financial Accounting – Depreciation, Provisions and Reserves Short Answer Type Questions Q1. Also give truck account if truck disposal account is prepared. In this method depreciation is charged on the book value of the asset and the amount of depreciation reduces year after year. TS Grewal Accountancy Class 11 Solutions 2019 are the part of TS Grewal Solutions. It cannot be used for distribution of dividend. To ascertain the correct profit or loss: Correct profit or loss can be ascertained when all the expenses and losses incurred for earning revenues are charged to Profit and Loss Account. Solution: Calculate the due dates of the bills in the following cases: Solution: Note: (i) As per this Question, point no. To meet known losses and liabilities: Provision is created to meet known losses and liabilities such as provision for repairs and renewals. Distinguish between ‘provision’ and ‘reserve’. Solution: Q9. Solution: on original cost and closes its books on December 31, every year. Dividend equalisation reserve, debenture redemption reserve, development rebate reserves. TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger are part of TS Grewal Accountancy Class 11 Solutions. Chapter 6: Trial Balance Rectification Of Errors. = ₹ 5,000. The value of assets can never be zero even though it is discarded. Provision is an amount which is set aside by charging it to profit for the purpose of providing for any known liability or uncertain loss or expense. On May 01, 2012 it purchased another machine for Rs.8,40,000 (including installation expenses). Give four examples each of ‘revenue reserve’ and ‘capital reserve’. When Depreciation is Charged or Credited to the Assets Account The overall balance of asset’s column in the balance sheet gets reduced. CBSE Class 11 Accountancy Worksheet for students has been used by teachers & students to develop logical, lingual, analytical, and problem-solving capabilities. Obsolescence: Because of new technologies, innovations and inventions, assets purchased currently may become outdated later which leads to the obsolescence of fixed assets. Q3. NCERT Solutions For Class 11 Financial Accounting – Recording of Transactions-II Short Answer Type Questions Q1. Solution: Q16. depreciation on written down value basis. It is not available for any future contingencies or expansion of business. Books are closed on December 31 every year. =₹ 5,267 per annum, Scrap Value = Salvage Value- estimated cost to recover the salvage value Hence, the amount of depreciation is same from period to period over the life of the asset. Solution: Q13. The two methods of recording depreciation are as follows: Which method is suitable for charging depreciation if the management does not want to increase burden on profits and loss account on account of depreciation and repair. If the asset has a residual value at the end of its useful life, the amount to be written of every year is as follows: If the annual depreciation amount is given then we can calculate the rate of depreciation as follows: Simple to calculate the depreciation amount, Assets can be depreciated up to the estimated scrap value, Easy to understand the amount of depreciation. Solution: Q8. = ₹ 9,000 per annum, Q3. We hope the TS Grewal Accountancy Class 12 Solutions Chapter 8 Accounting for Share Capital help you. Where, R is the rate of depreciation in percent, n is the useful life of the asset; S is the scrap value at the end of useful life and C is the cost of the asset. On March 01, 2012, one fourth of machinery was damaged by fire and ₹ 40,000 were received from the insurance company in full settlement. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for ₹ 20,000. on original cost and account are closed on December 31, every year. It is available for any future contingencies or expansion of business. Board CBSE Textbook NCERT Class Class 11 Subject Accountancy Chapter Chapter 6 Chapter Name Ledger Number of Questions Solved 12 Category TS Grewal Solutions […] Solution: Q14. on original cost method annually on December 31. Q4. Prepare a Truck Account for the four years. The following balances appear in the books of Crystal Ltd, on Jan 01, 2015 Accounts are closed on December 31, every year. on written down value method each year. It is utilised only for that purpose for which it is created. Purchased a second hand machine for Rs.56,000 on July 01, 2011 and spent Rs.24,000 on its repair and installation and Rs.5,000 for its carriage. Download Class 11 Accountancy NCERT Solutions in pdf free. Also give the necessary journal entries. The Solutions here are as per the current Academic year ready to CBSE. A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 01, 2011 is ₹ 40,00,000. It can be utilized for dividend distribution. The Entire Solutions Individual Chapters can be Downloaded Links Provided Official Website. The accounts are closed on December 31 every year. NCERT Solutions are considered an extremely helpful resource for exam preparation. Explain basic factors affecting the amount of depreciation. Solution: Q11. Book value of the assets becomes zero but still the assets are used in the business. Solution: Depreciation is calculated on the original cost of an asset. Calculation of annual depreciation Depreciation amount can be calculated by using the following formula: Written Down Value Method This study material owns a deep knowledge and the Solutions collected by the subject matter wizards are no distinct. As depreciation cost is high and repairs are less in the initial years but in the latter years the repair costs increase and depreciation cost decreases, there will be equal effect over the life of the asset. Answer : The fundamental steps in the accounting process are diagrammatically presented below. It is formed out of capital profit which is a gain from other than normal activities of business operations, such as sale of fixed assets. Accountancy helps the management of an organization with accurate financial statements, positions, and results which further aids them in making important business decisions. NCERT Solutions are said to be an extremely helpful study material while preparing for the CBSE Class 11 Accountancy examinations. Prepare: Solution: Q7. Give accounting treatment in case of provision for doubtful Debts. There is Separated column for Downloading NCERT class 11 Solutions 2021 for Accountancy English, Hindi, Urdu Medium, NCERT 11th Class Accountancy Solutions 2021 Chapter Part 1, NCERT 11th Class Accountancy Solutions 2021 Chapter Part 2, NCERT 11th Class Accountancy Part I Solutions 2021, NCERT 11th Class Accountancy Part II Solutions 2021, NCERT 11th Class Accountancy Solutions 2021, Filed Under: 11th Class, Accountancy, NCERT, NCERT Solutions, Solutions, Your email address will not be published. On July 01, 2013, One Truck was involved in an accident and was completely destroyed and ₹ 6,00,000 were received from the insurance company in full settlement. An increase in depreciation will be debited in the profit and loss account which reduces net profit. It can be used for distribution of dividend. CBSE Maths notes, CBSE physics notes, CBSE chemistry notes, Q1. Solution: Q19. Types of Reserves: Q6. Chapter 2: Theory Base Of Accounting. As depreciation remains same over the years but repair cost increases in the later years, there will be unequal effect over the life of the asset. The books are closed every year on March 31. What is ‘Depreciation’? Question 1. Solution: Q5. Q4. In the Balance sheet, asset appears at its written down value which is cost less depreciation charged till date. This machinery was sold for ₹ 1,00,000. State briefly the need for providing depreciation. To provide funds for replacement of assets: Unlike other expenses, depreciation is non cash expense. Solution: Q5. 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Question 1. iii. Solution: Q13. In this method, it is difficult to calculate depreciation. NCERT Solutions 2021 for Class 11 Accountancy Online Service Offers easy access to the NCERT for Class 11. Prepare furniture account, and accumulated depreciation account for the years ended on March 31, 2013, March 31,2014 and March 31,2015. Depreciation is provided on machinery @10% p.a. Treatment on liability side- Provision for repairs and charges are shown along with the current liabilities. Solution: It can be shown either (i) by way of deduction from the item on the assets side for which it is created, or (ii) in the liabilities side along with the current liabilities. Distinguish between ‘revenue reserve’ and ‘capital reserve’. On January 01, 2011, Satkar Transport Ltd, purchased 3 buses for ₹ 10,00,000 each. Provision for depreciation account ₹ 5,50,000 This method is most favorable for those assets which require increased repairs and maintenance expenses over the years. Interest on capital invested in assets is not provided in this method. Accounts are closed on March 31st every year. He made the following transactions: It strengthens the financial position. Solution: Q11. These funds will be available for replacement of fixed assets when its useful life ends. All Chapter wise Questions with Solutions to help you to revise complete Syllabus and Score More marks in … (a) Prepare Machine account and Depreciation account for the first four years by providing depreciation on straight line method. On April 01, 2015 a machinery which was purchased on January 01, 2012 for ₹ 2, 00,000 was sold for ₹ 75,000. Depreciation is provided on machinery at 20% p.a. Hence total expenses increase which leads to an excess of debit over credit balance. On July 01, 2010, Ashok Ltd. On October 01, 2010, a Truck was purchased for ₹ 8,00,000 by Laxmi Transport Ltd. Depreciation was provided at 15% p.a. = Cost of Asset-Estimated Scrap Value/Expected or Estimated life of Asset Depreciation p.a. The rate of depreciation is applicable to the book value but not to the cost of asset. NCERT Solutions for Class 11 Accountancy Part 1 Financial Accounting. Depreciation is calculated on the original cost of fixed asset, Depreciation is calculated on the book value (i.e. Solution: Q20. Journal and Ledger Rules of Debit and Credit Debit (Dr) means to enter an amount of transaction on the left side of an account and credit (Cr) means to enter an amount on the side of an account. Your email address will not be published. On July 01, 2012 another machine costing Rs.2,50,000 was purchased . Prepare machine account and Provision for depreciation account for the first three years charging depreciation by fixed installment Method. What are the causes of depreciation? NCERT solutions for class 11th Accountancy has been provides to help students resolve all the queries in the textbooks prescribed by NCERT. Four examples of reserve are given below. NCERT Books Class 11 Accountancy: The National Council of Educational Research and Training (NCERT) publishes Accountancy textbooks for Class 11. As the students would have to learn the fundamentals about the subject of accountancy in Class 11, this curriculum for Class 11 is a comprehensive study material, which explains the concepts in a great way. Q1. NCERT solutions for Class 11 Accountancy provides a wide range of concepts and an introduction to the subject which includes all the questions provided in the NCERT class 11 books. The main objective of provision is to account all expenses and losses. Depreciation is provided @10% p.a. On July 01, 2013, one bus was involved in an accident and was completely destroyed and ₹ 7,00,000 were received from the Insurance Company in full settlement. Rate of depreciation can be ascertained on the basis of cost, scrap value and useful life of the asset as follows: NCERT Solutions for Class 11 Accountancy. Further, on […] Answer : Transactions are recorded directly from source documents in the Cash Book, so there is no need to record transactions in the Journal book. Describe in detail two methods of recording depreciation. Importance of Provision: Therefore, provision is necessarily to be created to ascertain the current income or profit. Prepare machinery account and depreciation account from the year 2011 to 2014, if depreciation is provided on machinery @10% p.a. TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger. If you have any query regarding TS Grewal Accountancy Class 12 Solutions Chapter 8 Accounting for Share Capital, drop a comment below and we will get back to you at the earliest. The company maintains the calendar year as its financial year. The cost of depreciation reduces and the repair and maintenance expenses increase over the yea₹ However, the entire burden will not get ease to the management. TS Grewal Accountancy Class 11 Solutions Chapter 12 Accounting for Bills of Exchange. Working note: = 100000/10 = ₹ 10,000. Purchased goods for Rs.60,000 and paid Rs.2,000 for arrange. So in order to help you with that, we at WorksheetsBuddy have come up with Kendriya Vidyalaya Class 11 Accountancy Worksheets for the students of Class 11. Solution: Excel Computers has a debit balance of ₹ 50,000 (original cost ₹ 1, 20,000) in computers account on April 01, 2010. To show true and fair view of financial statements: If depreciation is not charged, assets will be shown at higher value than their actual value in the balance sheet. Passage of time: Whether assets are used or not, with the passage of time, its effective life will decrease. Prepare the machinery account from 2010 to 2013. Q2. Installation expenses ₹ 25,000 are paid by cheque. You will also love the ad-free experience on Meritnation’s NCERT Solutions. Depreciation is calculated on the reducing balance, i.e., the book value of an asset. Prepare truck account and provision for depreciation account for the three years ended on December 31, 2013. NCERT Solutions 2021 for Class 11 are Prepared by Subject Experts, Solutions are prepared detailed, step by step for all Questions in Text Book Solutions for quick Understanding and easy access. So, the amount of depreciation debited to the profit and loss account will be retained in the business. Distinguish between ‘general reserve’ and ‘specific reserve’. The depreciation is written off at 15% p.a. The needs for providing depreciation are given below. Solution: It was sold off for ₹ 1,50,000. on straight line method basis. Also show the necessary accounts. If depreciation is not charged, the cost of production is underestimated, which will lead to low selling price and thus leads to low profit. NCERT-Solutions.com provides questions and solutions of TS Grewal Solutions Class 11 Accountancy at free of cost. Machinery account and depreciation account for the years 2011, 2012, 2013 and 2014. It is created by management to avoid competition by reducing profit. Q7. Straight Line Method Here we have given TS Grewal Accountancy Class 11 Solutions Chapter 6 Ledger. Accounting Treatment Q10. Insurance company has agreed to pay ₹ 70,000 in full settlement of the claim. On July 01, 2011 Ashwani purchased a machine for ₹ 2,00,000 on credit. NCERT Standard XI Accountancy Solutions 2021 Providing the Download Latest Edition you can Download Pdf Format. On September 01, 2011 it purchased another machine for Rs.3,70,000. = (56,000+28,000)-5,000/15 Few examples are provision for depreciation, provision for doubtful debts and provision for discount on bad debtors. State the three fundamental steps in the accounting process. 1. There is no provision of interest on capital invested in use of assets. It is recognised under the income tax act. It is never invested outside the business. Q6. Purchased a second hand machine for ₹ 56,000 on October 01, 2011 and spent ₹ 28,000 on its overhaul and installation before putting it to operation. This method is based on the assumption of equal usage of time over asset’s entire useful life. Q10. = Cost-Scrap Value/Estimated Life of Asset (years) Accountancy-DK Goel 2019 Solutions for Class 11 Accountancy Chapter 3 - Books of Original Entry- Journal; Accountancy-DK Goel 2019 Solutions for Class 11 Accountancy Chapter 4 - Accounting for Goods & Service Tax GST) Accountancy-DK Goel 2019 Solutions for Class 11 Accountancy Chapter 5 - Books of Original Entry- Cash Book Prepare machinery account for 4 years on the basis of calendar year. Diminishing amount of depreciation is charged each year over the useful life of the asset. Write up the machinery account from 2012 to 2013. NCERT Solutions for Class 11 Accountancy NCERT Solutions for Class 11 Accountancy Part 1. Download Service Various subjects Published by CBSE – NCERT Accountancy Solutions 2021 for class 11. on straight line method. The computer is depreciated @10% p.a. What are ‘provisions’? Show the machinery account and provision for depreciation account for 3 years. Solution: on the diminishing balance basis on this truck. Get step by step NCERT solutions for Class 11 Accountancy Chapter 3 - Recording of Transactions – I. Depreciation means fall in book value of depreciable fixed asset because of. All questions have been solved in a step by step manner to you give better understanding of key concepts of Accountancy in NCERT Class 11. On March 01, 2013 it purchased another furniture for Rs.3,00,000. Chapter 1: Introduction To Accounting. This study material owns a deep knowledge and the Solutions collected by the subject matter wizards are no distinct. Solutions Very Important Home Work & Half Year, Final Examination Students Better Performance NCERT 11th Class Solutions 2021 for Accountancy Download Pdf Format Chapter Wise and Work Start Easy two Pass 11th Class grad 10 Points. It implies that a fixed rate on the written down value of the asset is charged as depreciation every year over the expected useful life of the asset. A Plant was purchased on 1st July, 2010 at a cost of ₹ 3,00,000 and ₹ 50,000 were spent on its installation. If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2011, 2012, 2013 and 2014. The Entire Solutions Individual Chapters … To meet anticipated losses and liabilities: Provision is created to meet the anticipated losses and liabilities such as provision for doubtful debts, provision for discount on debtors and provision for taxation. NCERT Solutions For Class 11 Financial Accounting – Recording of Transactions-I Short Answer Type Questions Q1. Solution: Q15. M/s Lokesh Fabrics purchased a Textile Machine on April 01, 2011 for Rs.1,00,000. Berlia Ltd. Answer : The evidence provided […] On October 01, 2013, one of the trucks is involved in an accident and is completely destroyed. All questions and answers from the NCERT Book of Class 11 Commerce Accountancy Chapter 4 are provided here for you for free. NCERT 11th Class Accountancy Solutions 2021, NCERT Class 11 Solutions 2021 for Accountancy Pdf Download, NCERT Class 11 Accountancy Solutions 2021, NCERT Class 11th Solutions 2021 for Accountancy (Financial Accounting-I, Lekhashastra-I, Accountancy-II, Lekhashastra-II, Khatadari-I, Khatadari-II) Pdf Download.