# Question No 3 Chapter No 14 – T.S. Grewal 11 Class

Question No.3 - Chapter No.14- T.S. Grewal +1 Book 2019-Solution

Question No 3 Chapter No 14

3. On 1st April 2014, furniture costing Rs 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for Rs 5,000. The addition is made on 1st April 2015 and 1st October 2017 to the value of Rs 9,500 and Rs 8,400( Residual values Rs 500 and RS 400 respectively). Show the furniture Account for the first four years, if Depreciation is written off according to the Straight line Method.

The solution of Question No 3 Chapter No 14: –

 Dr. Machine A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 01/04/14 To Cash A/c 55,000 31/03/15 By Deprecation A/c *1 5,000 31/03/15 By Balance C/d 50,000 55,000 55,000 01/03/15 To Balance b/f 50,000 31/03/16 By Deprecation A/c *2 5,900 01/03/15 To Cash A/c 9,400 31/03/16 By Balance C/d 53,500 59,400 59,400 01/03/16 To Balance b/d 53,500 31/03/17 By Deprecation A/c 5,900 31/03/17 By Balance C/d 47,600 53,500 53,500 01/03/17 To Balance b/f 47,600 31/03/18 By Deprecation A/c *3 6,300 01/10/17 To Cash A/c 8,400 31/03/18 By Balance C/d 49,700 56,000 56,000

Working note:-

*1:- Calculation of the amount of Depreciation on 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 = 55,000
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 5,000

 Amount of Depreciation = 55,000-5,000 = 5,000 per year 10

*2:- Calculation of amount of Depreciation on furniture purchased on 1st April,2015
Cost of assets = 9,500
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 500

 Amount of Depreciation = 9,500-500 = 900 per year 10

*3:- Calculation of the amount of Depreciation on furniture purchased on 1st October 2017
Cost of assets = 8,400
Number of years of expected useful life = 10 years
Estimated Retaliated or Scrap value = 400

 Amount of Depreciation = 8,400 – 400 = 800 per year 10

*In this the furniture was purchased on 1st October 2017. So the depreciation will be charged on the month the furniture is used. So the depreciation will be charged from 1st October 2017 to 31st March 2018
Amount of Depreciation = Amount of depreciation in the year X number of                        the month used / total number of months
= 800X 6/12= 400

Depreciation | Meaning | Methods | Examples

Comment if you have any question.

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

• Chapter No. 1 – Introduction to Accounting
• Chapter No. 2 – Basic Accounting Terms
• Chapter No. 3 – Theory Base of Accounting, Accounting Standards and International Financial Reporting Standards(IFRS)
• Chapter No. 4 – Bases of Accounting
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 7 – Origin of Transactions – Source Documents and Preparation of Vouchers
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book
• Chapter No. 11 – Special Purpose Books II – Other Books
• Chapter No. 12 – Bank Reconciliation Statement
• Chapter No. 13 – Trial Balance
• Chapter No. 14 – Depreciation
• Chapter No. 15 – Provisions and Reserves
• Chapter No. 16 – Accounting for Bills of Exchange
• Chapter No. 17 – Rectification of Errors
• Chapter No. 18 – Financial Statements of Sole Proprietorship
• Chapter No. 19 – Adjustments in preparation of Financial Statements
• Chapter No. 20 – Accounts from incomplete Records – Single Entry System
• Chapter No. 21 – Computers in Accounting
• Chapter No. 22 – Accounting Software – Tally
• Chapter No. 5 – Accounting Equation
• Chapter No. 6 – Accounting Procedures – Rules of Debit and Credit
• Goods and Services Tax(GST)
• Chapter No. 8 – Journal
• Chapter No. 9 – Ledger
• Chapter No. 10 – Special Purpose Books I – Cash Book

T.S. Grewal’s Double Entry Book Keeping