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Question No 09 Chapter No 13 – USHA Publication 11 Class

Question No 09 Chapter No 13
Q-09 - CH-13 - USHA +1 Book 2020 - Solution

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Question No 09 Chapter No 13

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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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/01/15To Cash A/c 85,00031/03/16By Deprecation A/c 8,000
    31/03/16By Balance C/d 77,000
   85,000   85,000
01/03/16To Balance b/d 72,00031/03/17By Deprecation A/c(8,000 + 1,800) 9,800
01/03/16To Cash A/c 19,80031/03/17By Balance C/d 87,000
   96,800   96,800
01/03/17To Balance b/d 87,000
31/03/18By Deprecation A/c 9,800
    31/03/18By Balance C/d 77,200
   87,000   87,000
01/03/18To Balance b/f 77,20031/03/19By Deprecation A/c 10,300
01/10/18To Cash A/c 12,40031/03/19By Balance C/d 79,300
   89,600
   89,600

Working note:-

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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

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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

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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

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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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