Question No 29 Chapter No 12

Question No 29 Chapter No 12

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

Furniture Account50,000
Provision for Depreciation on Furniture Account22,000

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/cCr.
1st Apr.2018To Balance b/f(30,000 + 20,000) 50,0001st Oct.2018By Provision for
Depreciation A/c
1st Oct.2018To Bank A/c 25,0001st Oct.2018By Bank A/c (Sale) 5,000
    1st Oct.2018By Profit & Loss A/c 7,000
    31st Mar 2019By Balance C/d  55,000
   75,000   75,000
Dr.Provision for Depreciation  A/cCr.
31stOct.2018To Furniture A/c 8,00031st Apr 2018By Balance b/d 22,000
    31st Mar.2019By Depreciation A/c* 4,250
31stMar.2019Balance 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
Furniture Purchase on of Equipment as on 1st Apr. 201420,000
Less: Depreciation for 4 Years @ 10%8,000
Value of Furniture on Oct. 01, 201812,000
Sale Price of Machinery 5,000
Loss on the sale of the asset7,000
*Depreciation charged during the year
On Rs 30,000 @ 10%3,000
On Rs 25,000 @ 10% for 6 months1,250

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
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