Question

From the following extract of the Balance Sheet of Regal Ltd., taking into consideration the additional information, you are required to calculate the amounts of the following items to be shown in the company’s Cash Flow Statement for the year 2018-19:

1. Fixed asset purchased.
2. Fixed asset sold.
3. Profit/Loss on sale of fixed asset.
4. Depreciation charged on fixed assets.

Particulars	31.03.2019 (₹)	31.03.2018 (₹)
Fixed Asset	6,00,000	4,90,000

Additional information:

1. The provision for depreciation on fixed assets stood at ₹ 1,40,000 on 31^st March, 2018 and ₹ 1,80,000 on 31^st March, 2019.
2. During the year 2018-19, a fixed asset costing ₹ 60,000 (book value ₹ 30,000) was sold for ₹ 20,000.

Answer 1

Dr.	Fixed Assets A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d (Net value)	4,90,000	By Bank A/c	20,000
To Cash A/c	2,10,000	By Loss on Sale	10,000
		By Depreciation A/c	70,000
		By Balance c/d	6,00,000
	7,00,000		7,00,000

 

Dr.	Provision for Depreciation A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Fixed Assets A/c	30,000	By Balance b/d	1,40,000
To Balance c/d	1,80,000	By P & L A/c	70,000
	2,10,000		2,10,000

1. Fixed Assets purchased = 1,80,000
2. Fixed Assets sold = 20,000
3. Loss on sale = 10,000
4. Depreciation = 70,000