Question 31 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 31 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

By Shubham Sharma 5 Min Read September 8, 2022

Question No.31 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

Question 31 Chapter 1 of +2-A

Table of Contents

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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Calculation of Gain (Profit) or Loss on Sale of Fixed Assets

31. The book value of furniture on 1st April 2018 is Rs. 60,000. Half of this furniture is sold for Rs. 20,000 on 30th September 2018. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on the sale of furniture. Show how the loss on sale and depreciation on the furniture will be shown in the income and Expenditure Account for the year ended 31st March 2019.

The solution of Question 31 Chapter 1 of +2-A

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	Furniture A/c
Date	Particular	Amount	Date	Particular	Amount
01/04/18	To Balance b/d	60,000	30/09/18	By Depreciation a/c (on a sold part) see note	1,500
			30/09/18	By Cash a/c	20,000
			30/09/18	By loss on the sale of Furniture	8,500
			31/03/19	By Depreciation a/c (on balance) see note	3,000
			31/03/19	By Balance c/d (B. Fig.)	27,000
		60,000			60,000

Income and Expenditure Account
Expenditure	Amount	Income	Amount
To Loss on sale of Furniture (check working note)	8,500
To Depreciation a/c (1500 + 3000)	4,500

BALANCE SHEET (AN EXTRACT) as on 31st March 2019
Particular	Amount	Particular	Amount
		Furniture	27,000

Statement Showing stationery used during the year
Particular	Amount
Book value of furniture as on 1st April 2018 which is sold (60,000 * ½)	30,000
Less: – Amount of Depreciation up to the date of sale i.e. 30th September 2018
30,000 * 10% *6/12	1,500
Book value of furniture as on 30th September 2018	28,500
Less: – Sale Price	20,000
The amount for Medicine debited to the Income and Expenditure A/c	8,500