Question 32 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 32 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

By Shubham Sharma 6 Min Read September 8, 2022

Question No.32 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

Question 32 Chapter 1 of +2-A

Table of Contents

The solution of Question 32 Chapter 1 of +2-A: –

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)

32. Delhi Youth Club has furniture at a value of Rs. 2,20,000 in its book on 31st March 2018. It sold old furniture, having a book value of Rs. 20,000 as at 1st April 2018 at a loss of 20% on 31st December 2018. Furniture is to be depreciation @ 10% p.a. Furniture costing Rs. 1,50,000 was also purchased on 1st October 2018.
Prepare Furniture Account for the year ended 31st March 2019.

The solution of Question 32 Chapter 1 of +2-A: –

	Furniture A/c
Date	Particular	Amount	Date	Particular	Amount
01/04/18	To Balance b/d	2,20,000	30/09/18	By Depreciation a/c (on a sold part) see note	1,500
01/10/18	To Bank A/c	1,50,000	30/09/18	By Cash a/c	14,800
			30/09/18	By loss on the sale of Furniture	3,700
			31/03/19	By Depreciation a/c (on balance) see note	27,500
			31/03/19	By Balance c/d (B. Fig.)	3,22,500
		3,70,000			3,70,000

Income and Expenditure Account
Expenditure	Amount	Income	Amount
To Loss on sale of Furniture (check working note)	3,700
To Depreciation a/c (1500 + 20,000 + 7,500)	29,000

BALANCE SHEET (AN EXTRACT) as on 31st March 2019
Particular	Amount	Particular	Amount
		Furniture	3,22,500

Statement Showing stationery used during the year
Particular	Amount
Book value of furniture as on 1st April, 2018 which is sold	20,000
Less: – Amount of Depreciation up to the date of sale i.e. 31st December 2018
30,000 * 10% *9/12	1,500
Book value of furniture as on 30th September 2018	18,500
Less: – Loss on sale of assets @ 20% 18,500 * 20%	3,700
Sale Price of furniture	14,800

Calculation of the amount of Depreciation on Balance of Furniture: –

On Old Furniture Full-year dep. Charged	On New Furniture From the Date of Purchase i.e. 01st October 2019 (For 6 months)
2,00,000 x 10% = 20,000/-	1,50,000 x 10% x 6/12 = 7,500/-

Total Amount of Dep = 27,500