# Question No 09 Chapter No 13 – USHA Publication 11 Class

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)