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

Question No 13 Chapter No 13

Sale of Total Assets

13. Arun Singh purchased furniture for Rs 1,90,000 and spent Rs 10,000 on its freight. Depreciation on furniture is charged @10% p.a. on fixed instalment method. The furniture was sold Rs 1,20,000. Books are closed on 31st March each year.
Calculate the profit or loss on the sale of furniture in the following alternative cases:

 Case 1: Furniture was purchased on 1st April 2014 and sold 31st March 2019 Case 2: Furniture purchased on 1st October 2015 and sold on 31st March 2019 Case 3: Furniture purchased on 1st January 2015 and sold on 31st October 2018 Case 4: Furniture was purchased on 1sr April 2017 and sold on 31st December 2018

The solution of Question No 13 Chapter No 13:-

Case 1: Furniture was purchased on 1st April,2014 and sold 31st March 2019

 Dr. Furniture A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/14 To Cash A/c 2,00,000 31/03/15 By Deprecation A/c 20,000 31/03/15 By Balance C/d 1,80,000 2,00,000 2,00,000 01/04/15 To Balance b/d 1,80,000 31/03/16 By Deprecation A/c 20,000 31/03/16 By Balance C/d 1,60,000 1,80,000 1,80,000 01/04/16 To Balance b/d 1,60,000 31/03/17 By Deprecation A/c 20,000 31/03/17 By Balance C/d 1,40,000 1,60,000 1,60,000 01/04/17 To Balance b/f 1,40,000 31/03/18 By Deprecation A/c 20,000 31/03/18 By Balance C/d 1,20,000 1,40,000 1,40,000 01/04/18 To Balance b/f 1,20,000 31/03/19 By Deprecation A/c 20,000 31/03/19 To Profit on sale of machinery 20,000 31/03/19 By Sale A/c 1,20,000 1,40,000 1,40,000

Case 2: Furniture purchased on 1st October 2015 and sold on 31st March 2019

 Dr. Furniture A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/10/15 To Cash A/c 2,00,000 31/03/16 By Deprecation A/c*1 10,000 31/03/16 By Balance C/d 1,90,000 2,00,000 2,00,000 01/04/16 To Balance b/d 1,90,000 31/03/17 By Deprecation A/c 20,000 31/03/17 By Balance C/d 1,70,000 1,90,000 1,90,000 01/04/17 To Balance b/d 1,70,000 31/03/18 By Deprecation A/c 20,000 31/03/18 By Balance C/d 1,50,000 1,70,000 1,70,000 01/04/18 To Balance b/f 1,50,000 31/03/19 By Deprecation A/c 20,000 31/03/19 By Sale A/c 1,20,000 31/03/19 By Loss on sale of machinery 10,000 1,50,000 1,50,000

Working note:-

*1:- Calculation of amount of Depreciation on furniture for year 2015-16
Machinery purchased on 1st October 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/10/2015 to 31/03/2016 i.e. 6 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 2,00,000 X 10/100 X 6 / 12
Depreciation = 10,000
Total Depreciation for the year = 10,000

Case 3: Furniture purchased on 1st January, 2015 and sold on 31st October,2018

 Dr. Furniture A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/01/15 To Cash A/c 2,00,000 31/03/15 By Deprecation A/c*1 5,000 31/03/15 By Balance C/d 1,95,000 2,00,000 2,00,000 01/04/15 To Balance b/d 1,95,000 31/03/16 By Deprecation A/c 20,000 31/03/16 By Balance C/d 1,75,000 1,95,000 1,95,000 01/04/16 To Balance b/d 1,75,000 31/03/17 By Deprecation A/c 20,000 31/03/17 By Balance C/d 1,55,000 1,75,000 1,75,000 01/01/17 To Balance b/f 1,55,000 31/03/18 By Deprecation A/c 20,000 31/03/18 By Balance C/d 1,35,000 1,55,000 1,55,000 01/04/18 To Balance b/f 1,35,000 31/03/19 By Deprecation A/c*2 11,667 31/03/19 By Sale A/c 1,20,000 31/03/19 By Loss on sale of machinery 3,333 1,35,000 1,35,000

Working note:-

*1:- Calculation of the amount of Depreciation on furniture for the year 2014-15

Machinery purchased on 1st January 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/01/2016 to 31/03/2017 i.e. 3 months
(from the date of purchase/Beginning balance to end of the financial year)
= 2,00,000 X 10/100 X 3 / 12
Depreciation = 5,000
Total Depreciation for the year  5,000

*2:- Calculation of amount of Depreciation on furniture for year 2017-18
Machinery purchased on 1st January 2015
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/04/2017 to 31/10/2017 i.e. 8 months
(from the date of purchase/Beginning balance to end of the financial year)
= 3,00,000 X10/100 X 12 / 12
Depreciation = 13,333
Total Depreciation for the year = 13,333

Case 4: Furniture was purchased on 1sr April, 2017 and sold on 31st December, 2018

 Dr. Furniture A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/17 To Cash A/c 2,00,000 31/03/15 By Deprecation A/c*1 20,000 31/03/15 By Balance C/d 1,80,000 2,00,000 2,00,000 01/04/18 To Balance b/f 1,80,000 31/03/19 31/03/19 20,000 31/03/19 By Balance C/d 1,60,000 1,80,000 1,80,000 01/04/19 To Balance b/f 1,60,000 31/12/19 By Deprecation A/c*1 15,000 31/12/19 By Sale A/c 1,60,000 31/12/19 By Loss on sale of machinery 25,000 1,60,000 1,60,000

Working note :-

*1:- Calculation of amount of Depreciation on furniture for year 2018-19
Machinery purchased on 1st April, 2017
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10%
Period = from 01/04/2016 to 31/10/2018 i.e. 9 months
(from the date of purchase/Beginning balance to end of the financial year)
= 2,00,000 X 10/100 X 9 / 12
Depreciation = 15,000
Total Depreciation for the year = 15,000

Depreciation | Meaning | Methods | Examples

Thanks, Please Like and share with your friends

Comment if you have any question.

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)