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Question 32 Chapter 1 of +2-Part-1
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32. The book value of the furniture on 1st Jan. 2015 was Rs.54,000. On 1st July 2015 one –fourth of the furniture was sold for Rs.9,000 and two tables were purchased for Rs. 8,000 on 1st October, 2015. Depreciation is charged @ 10% p.a.
Show that the loss on the sale of furniture and also the depreciation to be charged to Income and Expenditure Account. Show at what value the furniture will be shown in the Balance Sheet on 31st December 2015.
The solution of Question 32 Chapter 1 of +2 Part-1: –
| Value of furniture to be shown in the Balance Sheet as on 31-12-2015 | ||
| Particulars | Amount | |
| Book Value of furniture as on 1st January 2015 | 54,000 | |
| Add: Tables purchased on 1st Oct. 2015 | 8,000 | |
| 62,000 | ||
| Less: Depreciation: – | (42,000) | |
| On 1/4th Furniture (i.e. 13,500*1/4) for half-year | 675 | |
| On 3/4th furniture (i.e. 54,000*3/4) for the year | 4,050 | |
| On Rs. 8,000 (New) for ¼ year | 200 | (4,925) |
| Less: Sale proceeds of furniture | (9,000) | |
| Less: Loss on Sale of furniture ( Rs.13500-(9000+675)) | (3,825) | |
| Value of Furniture in Balance Sheet as on 31-12-2015 | 44,250 | |
Working Note:
1. Entry for purchase of furniture purchased from outside state is :
| Particulars | L.F. | Debit | Credit | |
| Furniture a/c | Dr. | 20,000 | ||
| Input IGST a/c | Dr. | 2,400 | ||
| To Cash/ Vendor | 22,400 | |||
As furniture purchased on the last date of the year. Hence, the amount of input IGST will be shown and Current Asset in the Balance Sheet and Furniture will be debited only with the cost.
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
