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

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

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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

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

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