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

Question 32 Chapter 1 of +2-A

Question 32 Chapter 1 of +2-A

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 month)
2,00,000 * 10%
= 20,000/-
1,50,000 * 10% * 6/12
= 7,500/-

Total Amount of Dep = 27,500

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 32 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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