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

Question 31 Chapter 1 of +2-A

Question 31 Chapter 1 of +2-A

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

: –

  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

Calculation of the amount of Depreciation on Balance of Furniture: –
30,000 * 10%
= 3,000/-

Not-for-Profit Organisations – Meaning and Overview

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Also, Check out the solved question of previous Chapters: –

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

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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

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

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 31 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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