Mahesh traders Solapur purchased furniture on 1st April 2014 for ₹20,000. In the same year on 1st Oct additional furniture was purchased for ₹10,000. On 1st Oct 2015, the Furniture purchased on 1st April 2014 was sold for ₹15,000 and on the same day a new Furniture was purchased for ₹20,000. The firm charged depreciation at 10% p.a. on Reducing Balance Method. Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017. Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017.



 3. Mahesh traders Solapur purchased furniture on 1st April 2014 for ₹20,000. In the same year on 1st Oct additional furniture was purchased for ₹10,000

On 1st Oct 2015, the Furniture purchased on 1st April 2014 was sold for ₹15,000 and on the same day a new Furniture was purchased for ₹20,000.

The firm charged depreciation at 10% p.a. on Reducing Balance Method. 

Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017.

Solution:

In the Books of Mahesh Traders Solapur

Furniture Account

Date 

Particulars 

JF 

Amount 

Date 

Particulars 

JF 

Amount 

2014 

 

 

 

2015 

 

 

 

1st April 

To Cash/Bank A/c 

 

20,000 

31st March 

By Depreciation 

 

2,500 

1st Oct 

To Cash/Bank A/c 

 

10,000 

 

 

 

 

 

 

 

 

31st March 

By Balance31 c/d 

 

27,500 

 

 

 

30,000 

 

 

 

30,000 

2015 

 

 

 

2015 

 

 

 

1st April  

To Balance b/d 

 

27,500 

1st Oct 

By Depreciation 

 

900 

1st Oct 

To cash/bank A/c

 

20,000

1st Oct 

By Cash/Bank A/c

 

15,000

 

 

 

 

1st Oct

By loss on sale 

 

2,100

 

 

 

 

2016


 

 

 

 

 

 

 31st March

By depreciation  

 

1,950 

 

 

 

 

31st March 

By Balance c/d 

 

27,550 

 

 

 

47,500


 

 

47,500

2016 

 

 

 

2017 

 

 

 

1st April 

To Balance b/d 

 

27,550 

31st March 

By Depreciation 

 

2,755 

 

 

 

 

 

 

 

 

 

 

 

 

31st March  

By Balance c/d 

 

24,795

 

 

 

11,750 

 

 

 

11,750 




Depreciation Account

Date 

Particulars 

JF 

Amount 

Date 

Particulars 

JF 

Amount 

2015 

 

 

 

2015 

 

 

 

31st March 

To Machinery A/c 

 

2,500 

31st March 

By Profit& Loss A/c 

 

2,500 

1st Oct 

To Machinery A/c 

 

900 

 

 

 

 

 

 

 

3,400 

 

 

 

3,400 

 

 

 

 

 

 

 

 

2016 

 

 

 

2016 

 

 

 

31st March 

To Machinery A/c 

 

1,950 

31st March 

By Profit & Loss A/c 

 

1,950 

 

 

 

 

 

 

 

 

 

 

 

1,950 

 

 

 

1,950 

 

 

 

 

 

 

 

 

2017 

 

 

 

2017 

 

 

 

31st march 

To machinery A/c 

 

2,755 

31st March 

By Profit & Loss A/c 

 

2,755 

 

 

 

 

 

 

 

 

 

 

 

2,755 

 

 

 

2,755 

 

 

 

 

 

 

 

 



Calculation:

1. 31st March 2015
(M1) 20,000*10% = 2,000
(M2) 10,000*10%*6/12 = 500

2. 1st Oct 2015
(M1) 18,000*10%*6/12 = 900
 31st March 2016
(M2) 9,500*10% = 950
(M3) 20,000*10%*6/12 = 1,000

3. 31st March 2017
(M2) 8,550*10% = 855
(M3) 19,000*10% = 1,900

Depreciation Calculator along with month and percentage

Car Insurance online
Car Insurance Renewal

Comments

Post a Comment

Excitement surges as Prime Minister Narendra Modi inaugurates Atal Setu, India's longest sea-bridge, with an enticing announcement – toll rates set at just Rs 250 for a one-way trip and Rs 375 for a round trip in the first year! PM Modi's symbolic journey from INS Shikara in Colaba marked the grand commencement. In Navi Mumbai, he dedicated three pivotal infrastructure projects, laying the foundation stone for another. This Rs 21,200 crore investment plan, unfolding over five years, not only enhances Atal Setu's accessibility but also integrates the city's waterfronts with tunnels and flyovers.

Student Reviews

Very helpful for getting a solution. Thank you!

I like all your posts. You have done really good work. Thank you for the information you provide; it helped me a lot.

The answers are so perfect and proper 🌝

Nice explanation in full detail is very helpful.

It's very easy to learn.

Privacy Statement: We respect student privacy and do not share any personal information. Reviews are voluntarily provided to showcase genuine appreciation for our content.