Question No 09 Chapter No 13 – USHA Publication 11 Class

Question No 09 Chapter No 13

Question No 09 Chapter No 13

Addition to Assets and Life Given in Years

9. On 1st April,2015, Harnam Singh purchased certain furniture items costing Rs 85,000. It is estimated that its working life is 10 Years, at the end of which it will fetch Rs 5,000. Additions are made on 1st April,2016 and 1st Octuber,2018, to the value of Rs 19,800 and Rs 12,400(Residual values Rs 1,800 and Rs 2,400 respectively)
Show the furniture account for first four years, if depreciation is provided according to straight line method and books are closed on 31st March. The life of new furniture id also 10 years

 

The solution of Question No 09 Chapter No 13:-  

 

Dr. Furniture A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
01/01/15 To Cash A/c   85,000 31/03/16 By Deprecation A/c   8,000
        31/03/16 By Balance C/d   72,000
      85,000       85,000
01/03/16 To Balance b/d   72,000 31/03/17 By Deprecation A/c(8,000 + 1,800)   9,800
01/03/16 To Cash A/c   19,800 31/03/17 By Balance C/d   90,000
      96,800       96,800
01/03/17 To Balance b/d   87,000
31/03/18 By Deprecation A/c   9,800
        31/03/18 By Balance C/d   77,200
      87,000       87,000
01/03/18 To Balance b/f   77,200 31/03/19 By Deprecation A/c   10,300
01/10/18 To Cash A/c   12,400 31/03/19 By Balance C/d   79,300
      89,600
      89,600

 

 

Working note:-

The method of calculating the amount of Deprecation furniture purchased on 1st April 2015:

Amount of Depreciation = Cost of assets- Estimated Realizable or Scrap value
Number of years of expected useful life

Cost of assets = Cost of Furniture = 85,000
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 5,000

Amount of Depreciation = 85,000-5,000  = 8,000
             10

The method of calculating the amount of Deprecation furniture purchased on 1st April 2016:

Amount of Depreciation = Cost of assets- Estimated Realizable or Scrap value
Number of years of expected useful life

Cost of assets = Cost of Furniture = 19,800
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 1,800

Amount of Depreciation = 19,800 – 1,800  = 1,800
10

 

The method of calculating the amount of Deprecation furniture purchased on 1st October 2018:

Amount of Depreciation = Cost of assets- Estimated Realizable or Scrap value
Number of years of expected useful life

Cost of assets = Cost of Furniture = 12,400
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 2,400

Amount of Depreciation = 12,400 – 2,400  = 1,000
10
    = 1,000 X 6/12
    = 500

 

 

Depreciation | Meaning | Methods | Examples

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

Chapter No. 3 – Vouchers and transactions

Chapter No. 4 – Journal

Chapter No. 5 – Ledger

Chapter No. 6 – Cash Book

Chapter No. 7 – Other Subsidiary Books

Chapter No. 8 – Journal Proper

Chapter No. 9 – Trial Balance 

Chapter No. 10 – Bank Reconciliation Statement

Chapter No. 11 – Depreciation

Chapter No. 12 – Provisions and Reserves 

Chapter No. 13 – Bills of Exchange

Chapter No. 14 – Rectification of Errors 

Chapter No. 15 – Financial Statements – (Without Adjustments)

Chapter No. 16 – Financial Statements – (With Adjustments)

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