Question 32 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 32 Chapter 1 of +2- Part-
Q-32 - CH-1 - Usha +2 Book 2018 - Solution

Question 32 Chapter 1 of +2-Part-1

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.

Thanks, Please Like and share with your friends  

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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

Advertisement-X

Advertisement

error: Content is protected !!