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Question No 13 Chapter No 13 – USHA Publication 11 Class

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

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Question No 13 Chapter No 13

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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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/14To Cash A/c 2,00,00031/03/15By Deprecation A/c 20,000
    31/03/15By Balance C/d 1,80,000
   2,00,000   2,00,000
01/04/15To Balance b/d 1,80,00031/03/16By Deprecation A/c 20,000
    31/03/16By Balance C/d 1,60,000
   1,80,000   1,80,000
01/04/16To Balance b/d 1,60,000
31/03/17By Deprecation A/c 20,000
    31/03/17By Balance C/d 1,40,000
   1,60,000   1,60,000
01/04/17To Balance b/f 1,40,00031/03/18By Deprecation A/c 20,000
    31/03/18By Balance C/d 1,20,000
   1,40,000
   1,40,000
01/04/18To Balance b/f 1,20,00031/03/19By Deprecation A/c 20,000
31/03/19To Profit on sale of machinery 20,00031/03/19By Sale A/c 1,20,000
   1,40,000   1,40,000

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

Dr.Furniture A/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/10/15To Cash A/c 2,00,00031/03/16By Deprecation A/c*1 10,000
    31/03/16By Balance C/d 1,90,000
   2,00,000   2,00,000
01/04/16To Balance b/d 1,90,00031/03/17By Deprecation A/c 20,000
    31/03/17By Balance C/d 1,70,000
   1,90,000   1,90,000
01/04/17To Balance b/d 1,70,000
31/03/18By Deprecation A/c 20,000
    31/03/18By Balance C/d 1,50,000
   1,70,000   1,70,000
01/04/18To Balance b/f 1,50,00031/03/19By Deprecation A/c 20,000
    31/03/19By Sale A/c 1,20,000
    31/03/19By 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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/01/15To Cash A/c 2,00,00031/03/15By Deprecation A/c*1 5,000
    31/03/15By Balance C/d 1,95,000
   2,00,000   2,00,000
01/04/15To Balance b/d 1,95,00031/03/16By Deprecation A/c 20,000
    31/03/16By Balance C/d 1,75,000
   1,95,000   1,95,000
01/04/16To Balance b/d 1,75,000
31/03/17By Deprecation A/c 20,000
    31/03/17By Balance C/d 1,55,000
   1,75,000   1,75,000
01/01/17To Balance b/f 1,55,00031/03/18By Deprecation A/c 20,000
    31/03/18By Balance C/d 1,35,000
   1,55,000
   1,55,000
01/04/18To Balance b/f 1,35,00031/03/19By Deprecation A/c*2 11,667
    31/03/19By Sale A/c 1,20,000
    31/03/19By 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/cCr.
DateParticulars
J.F.AmountDateParticulars
J.F.Amount
01/04/17To Cash A/c 2,00,00031/03/15By Deprecation A/c*1 20,000
    31/03/15By Balance C/d 1,80,000
   2,00,000   2,00,000
01/04/18To Balance b/f 1,80,00031/03/1931/03/19 20,000
    31/03/19By Balance C/d 1,60,000
   1,80,000   1,80,000
01/04/19To Balance b/f 1,60,00031/12/19By Deprecation A/c*1 15,000
    31/12/19By Sale A/c 1,60,000
    31/12/19By Loss on sale of machinery 25,000
   1,60,000   1,60,000

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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

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Depreciation – Meaning – Methods – Examples -In Hindi

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

Chapter No. 1 – Introduction

Chapter No. 2 – Theory Base of Accounting 

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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

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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 

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

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

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