Question No 29 Chapter No 12
29.On 1st April, 2018, following balances appeared in the books of M/s Krishna Traders:
| Furniture Account | 50,000 |
| Provision for Depreciation on Furniture Account | 22,000 |
On 1st October 2018, a part of Furniture purchased for 20,000 on 1st April 2014 was sold for 5,000. On the same date, a new piece of furniture costing 25,000 was purchased.
The depreciation was provided @ 10% p.a. on the original cost of the asset and no depreciation was charged on the asset in the year of sale. Prepare ‘Furniture Account’ and ‘Provision for Depreciation Account’ for the year ending 31st March 2019.
The solution of Question No 29 Chapter No 12: –
| Dr. | Machinery A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 1st Apr.2018 | To Balance b/f(30,000 + 20,000) | 50,000 | 1st Oct.2018 | By Provision for Depreciation A/c |
8,000 | ||
| 1st Oct.2018 | To Bank A/c | 25,000 | 1st Oct.2018 | By Bank A/c (Sale) | 5,000 | ||
| 1st Oct.2018 | By Profit & Loss A/c | 7,000 | |||||
| 31st Mar 2019 | By Balance C/d | 55,000 | |||||
| 75,000 | 75,000 | ||||||
| Dr. | Provision for Depreciation A/c | Cr. | |||||
| Date | Particulars |
J.F. | Amount | Date | Particulars |
J.F. | Amount |
| 31stOct.2018 | To Furniture A/c | 8,000 | 31st Apr 2018 | By Balance b/d | 22,000 | ||
| 31st Mar.2019 | By Depreciation A/c* | 4,250 | |||||
| 31stMar.2019 | Balance c/d | 18,250 | |||||
| 26,250 | 26,250 | ||||||
Working Note:
Calculation of Profit or Loss on Sale M1
| Statement Showing the Profit and loss on the sale of Plant | |
| Particulars |
Amount |
| Furniture Purchase on of Equipment as on 1st Apr. 2014 | 20,000 |
| Less: Depreciation for 4 Years @ 10% | 8,000 |
| Value of Furniture on Oct. 01, 2018 | 12,000 |
| Sale Price of Machinery | 5,000 |
| Loss on the sale of the asset | 7,000 |
| *Depreciation charged during the year | |
| Particulars |
Amount |
| On Rs 30,000 @ 10% | 3,000 |
| On Rs 25,000 @ 10% for 6 months | 1,250 |
| 4,250 | |
https://tutorstips.com/depreciation/
Comment if you have any question.
Also, Check out the solved question of all Chapters: –
D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution
- Chapter 1 Evolution of Accounting & Basic Accounting Terms
- Chapter 2 Accounting Equations
- Chapter 3 Meaning and Objectives of Accounting
- Chapter 4 Double Entry System
- Chapter 5 Books of Original Entry – Journal
- Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
- Chapter 7 Books of Original Entry – Cash Book (Coming soon)
- Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
- Chapter 9 Ledger (Coming soon)
- Chapter 10 Trial Balance and Errors (Coming soon)
- Chapter 11 Bank Reconciliation Statement (Coming soon)
- Chapter 12 Depreciation (Coming soon)
- Chapter 13 Bills of Exchange (Coming soon)
- Chapter 14 Generally Accepted Accounting Principles(GAAP)
- Chapter 15 Bases of Accounting
- Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
- Chapter 17 Capital and Revenue
- Chapter 18 Provisions and Reserves
- Chapter 19 Final Accounts (Coming soon)
- Chapter 20 Final Accounts – With Adjustments (Coming soon)
- Chapter 21 Errors and their Rectification (Coming soon)
- Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
- Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
- Chapter 24 Computerised Accounting System (Coming soon)
- Chapter 25 Introduction to Accounting Information System (Coming soon)
Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.
