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

Question No 3 Chapter No 14

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

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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

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T.S. Grewals Double Entry Book Keeping - Question No 3 Chapter No 14 - T.S. Grewal 11 Class

T.S. Grewal’s Double Entry Book Keeping

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