Opening Balance as on 1st jan 20000.00 and Rs. 1200/- furniture has been exchanged with additional pay Rs. 500/- on same date and depreciation Rate 10% then what will be closing value of furniture in the balance sheet.
Please solve the question
7 Replies
CA CS Pushkar Agarwal
(Service)
(155 Points)
Replied 08 June 2012
ANS:2025
ON (20,000-1200) @ 10% FOR FULL YEAR
ON 1200 @ 10% FOR 6 MONTHS
ON (1200+500) @ 10% FOR 6 MONTHS
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
closing value of furniture is 19580
first we open furniture a\c
debit side total :
op balance 20000 + exchange of furniture 1200 + additional pay 500 = 21700
credit side total = (dep 10% 21200) 2120
closing balance of furniture = 21700-2120 = 19580 ans.
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
closing value of furniture is 19580
first we open furniture a\c
debit side total :
op balance 20000 + exchange of furniture 1200 + additional pay 500 = 21700
credit side total = (dep 10% 21200) 2120
closing balance of furniture = 21700-2120 = 19580 ans.
Mayank Mall
(CA-Final)
(316 Points)
Replied 08 June 2012
Books of accounts if as per accounting year then only 3 months dep or else if calendar year then 12months dep.
Dep....
On Opening Bal. = 10% X 20000 = 2000
On Additions = 1200 + 500 ( 500 is cap. exp. incurred to acquire the asset ).....therefore 10% X 1700 = 170
.........
Total Furniture = 20000 + 1700 = 21700
Less: DEP. (2170)
Closing Bal. = 19530
Hemchand Kohli
(Accountant)
(889 Points)
Replied 08 June 2012
In this question how u have caclulated deprecation of Rs. 2,120/- and according to me answer should be 18,450/- as follows:
Opening 20,000 - 1200 + 1700 = 20,500.00
Depreciation will be 10% of 20,500/- = 2050.00
Value of Furniture will be 18450.00
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
value of furniture is 18000 instead of 18450 regarding hemchand.
Mayank Mall
(CA-Final)
(316 Points)
Replied 08 June 2012
just a sec., u exchanged furniture for furniture, i mean ofcourse, i forgot......well so in the case I'll agree with hemchand.....dep. = 2050
and closing balance 18450.
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