Advertisements
Advertisements
प्रश्न
Mahesh Traders Solapur purchased Furniture on 1st April 2014 for ₹ 20,000. In the same year on 1st, Oct. additional Furniture was purchased for ₹ 10,000.
On 1st Oct. 2015, the Furniture purchased on 1st April 2014 was sold for ₹ 15,000 and on the same day, a new Furniture was purchased for ₹ 20,000.
The firm charged depreciation at 10% p.a. on the Reducing Balance Method.
Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016, and 2017.
Advertisements
उत्तर
In the books of Mahesh Traders, Solapur
| Dr. | Furniture Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2014 | 2015 | ||||||
| Apr. 1 | To Cash/Bank A/c | 20,000 | Mar. 31 | By Depreciation A/c (2,000 + 500) | 2,500 | ||
| Oct. 1 | To Cash/Bank A/c | 10,000 | Mar. 31 | By Balance c/d | 27,500 | ||
| 30,000 | 30,000 | ||||||
| 2015 | 2015 | ||||||
| Apr. 1 | To Balance b/d | 27,500 | Oct. 1 | By Cash/Bank A/c | 15,000 | ||
| Oct. 1 | To Cash/Bank A/c | 20,000 | Oct. 1 | By Depreciation A/c | 900 | ||
| Oct. 1 | By Profit and Loss A/c (loss on sale) | 2,100 | |||||
| 2016 | |||||||
| Mar. 31 | By Depreciation A/c | 1,950 | |||||
| Mar. 31 | By Balance c/d | 27,550 | |||||
| 47,500 | 47,500 | ||||||
| 2016 | 2017 | ||||||
| Apr. 1 | To Balance b/d | 27,550 | Mar. 31 | By Depreciation A/c | 2,755 | ||
| Mar. 31 | By Balance c/d | 24,795 | |||||
| 27,550 | 27,550 | ||||||
| 2017 | |||||||
| Apr. 1 | To Balance b/d | 24,795 | |||||
| Dr. | Depreciation Account | Cr. | |||||
| Date | Particulars | J.F. | Amt ₹ | Date | Particulars | J.F. | Amt ₹ |
| 2015 | 2015 | ||||||
| Mar. 31 | To Furniture A/c | 2,500 | Mar. 31 | By Profit and Loss A/c | 2,500 | ||
| 2,500 | 2,500 | ||||||
| 2015 | 2016 | ||||||
| Oct. 1 | To Furniture A/c | 900 | Mar. 31 | By Profit and Loss A/c | 2,850 | ||
| 2016 | |||||||
| Mar. 31 | To Furniture A/c | 1,950 | |||||
| 2,850 | 2,850 | ||||||
| 2017 | 2017 | ||||||
| Mar. 31 | To Furniture A/c | 2,755 | Mar. 31 | By Profit and Loss A/c | 2,755 | ||
| 2,755 | 2,755 | ||||||
Working Notes:
1. Calculation of Profit or loss on sale of furniture:
Original cost on 01.04.2014 = ₹ 20,000
Less: Depreciation for 2014-15 (12 months) = ₹ 2,000
W.D.V. on 01.04.2015 = ₹ 18,000
Less: Depreciation for 2015-16 = ₹ 900
W.D.V. on date of sale = ₹ 17,100
Less: Selling price = ₹ 15,000
∴ Loss on sale of furniture = ₹ 2,100
2. Calculation of Depreciation for 2016 -17:
(a) Opening balance on 01.04.2015 = ₹ 27,500
Less: W.D.V. of furniture sold on 01.04.2015 = ₹ 18,000
9,500 – 10% = ₹ 950
(b) Purchase of furniture on 01.10.2015 – 10% – 6months = 950 + 1,000 = ₹ 1,950
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
Why depreciation is charged even in the year of loss?
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
Select the most appropriate answer from the alternatives given below and rewrite the sentence:
Depreciation is charged only on ______ assets.
State whether the following statement is True or False with reasons:
Depreciation is charged on fixed assets.
Do you agree or disagree with the following statement:
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
Complete the following sentence:
Depreciation is charged on ______ asset.
Complete the following sentence:
The amount spent on installation of Machinery is a ______ expenditure.
Under straight-line method, the amount of depreciation is ______.
A depreciable asset may suffer obsolescence due to ______.
Depreciation is to be calculated from the date when ______.
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.
A company purchased a building for ₹ 50,000. The useful life of the building is 10 years and the residual value is ₹ 5,000. Find out the amount and rate of depreciation under the straight-line method.
Correct the following statement and rewrite the statement.
Underwritten down value method depreciation is calculated on the original cost of an asset.
A machine costing ₹ 23,000 is estimated to have a life of 7 years and the scrap value is estimated at ₹ 2,000 at the end of its useful life. Find out the amount of depreciation p.a.
If the cost of the Computer is ₹ 40,000 and depreciation is to be charged at 8% p.a. Calculate the amount of depreciation.
M/s Sitaram and Co Purchased a Machinery on 1st January 2016 for ₹ 2,00,000. The company provides depreciation @ 10% p.a. on Reducing Balance Method on 31st March every year. Calculate Written Down Value of Machinery as of 31st March 2017.
On 1st July 2016 M/s. Ramai & Co. .sold Machinery for ₹ 7,000 the original cost of ₹ 10,000 which was purchased on 18th April 2015. Find out the profit or loss on sale of Machinery by charging depreciation at 10% p.a. on original cost on 31st March every year.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st January 2017 ‘Sai Industries, Nagpur’ purchased a Machine costing ₹ 1,65,000 and spent ₹ 15,000 for its installation charges. The estimated life of the Machine is to be 10 years and the scrap value at the end of its life would be ₹ 30,000. On 1st October 2018, the entire Machine was sold for ₹ 1,50,000.
Show Machinery Account, Depreciation Account, for the years 2016-17, 2017-18, and 2018-19 assuming that the accounts are closed on 31st March every year.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
M/s Omkar Enterprise Jalgaon acquired a Printing Machine for ₹75,000 on 1 Oct 2015 and spent ₹5,000 on its transport and installation. Another Machine for ₹45,000 was purchased on 1st Jan 2017. Depreciation is charged at the rate of 20% on the Written Down Value Method, on 31st March every year.
Prepare Printing Machine Account for the first four years.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
On 1st April 2015 Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years The Registration charges of the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
A firm buys a machine that wears out faster in early years but provides greater efficiency initially. Which depreciation method would most accurately reflect this pattern?
The Double Declining Balance Method applies depreciation:
