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

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

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 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

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