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

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

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Question 31 Chapter 1 of +2-A

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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
DateParticular AmountDateParticularAmount
01/04/18To Balance b/d60,00030/09/18By Depreciation a/c
(on a sold part) see note
1,500
   30/09/18By Cash a/c20,000
   30/09/18By loss on the sale of Furniture8,500
   31/03/19By Depreciation a/c
(on balance) see note
3,000
   31/03/19By Balance c/d (B. Fig.) 27,000
  60,000  60,000 

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Income and Expenditure Account
ExpenditureAmountIncomeAmount
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 AmountParticularAmount
  Furniture27,000
    

 

 

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% *6/121,500
Book value of furniture as on 30th September 201828,500
Less: – Sale Price20,000
The amount for Medicine debited to the Income and Expenditure A/c8,500

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)

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)

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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