Question No 29 Chapter No 12 – D.K Goal 11 Class

Question No 29 Chapter No 12

Question No 29 Chapter No 12

Free Accounting book Solution - Class 11 and Class 12

29.On 1st April, 2018, following balances appeared in the books of M/s Krishna Traders:

Furniture Account 50,000
Provision for Depreciation on Furniture Account 22,000

On 1st October 2018, a part of Furniture purchased for 20,000 on 1st April 2014 was sold for 5,000. On the same date, a new piece of furniture costing 25,000 was purchased.
The depreciation was provided @ 10% p.a. on the original cost of the asset and no depreciation was charged on the asset in the year of sale. Prepare ‘Furniture Account’ and ‘Provision for Depreciation Account’ for the year ending 31st March 2019.

The solution of Question No 29 Chapter No 12: –

Dr. Machinery A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
1st Apr.2018 To Balance b/f(30,000 + 20,000)   50,000 1st Oct.2018 By Provision for
Depreciation A/c
  8,000
1st Oct.2018 To Bank A/c   25,000 1st Oct.2018 By Bank A/c (Sale)   5,000
        1st Oct.2018 By Profit & Loss A/c   7,000
        31st Mar 2019 By Balance C/d   55,000
      75,000       75,000
Dr. Provision for Depreciation  A/c Cr.
Date Particulars
J.F. Amount Date Particulars
J.F. Amount
31stOct.2018 To Furniture A/c   8,000 31st Apr 2018 By Balance b/d   22,000
        31st Mar.2019 By Depreciation A/c*   4,250
31stMar.2019 Balance c/d   18,250        
      26,250       26,250

Working Note:
Calculation of Profit or Loss on Sale M1

Statement Showing the Profit and loss on the sale of Plant
Particulars
Amount
Furniture Purchase on of Equipment as on 1st Apr. 2014 20,000
Less: Depreciation for 4 Years @ 10% 8,000
Value of Furniture on Oct. 01, 2018 12,000
Sale Price of Machinery 5,000
Loss on the sale of the asset 7,000
*Depreciation charged during the year
Particulars
Amount
On Rs 30,000 @ 10% 3,000
On Rs 25,000 @ 10% for 6 months 1,250
  4,250

Depreciation | Meaning | Methods | Examples

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D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

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ISC Accounts 11 20 Image min 197x300 - Question No 29 Chapter No 12 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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