Hemchand Kohli (Accountant) (889 Points)
10 November 2009books of ram shows on 1st jan 2006, furniture rs.20000/- during the year the part of furniturewhose book value on 1st jan 2006 is rs. 1200/-has been exchanged with another furniture by paying additional rs.500/-. Ram charged depreciation @ 10% p.a, the net amt of the furniture to be shown in the Bal. Sheet.?
Plz give ans
thanx
urgent
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 10 November 2009
THe value of new furniture as per AS 10
WDV of old furniture given + Cash paid i.e; rs. 1700.
WDV as on beginning of the year Rs. 20,000
Less: - Furniture Given up (1200)
18,800
+ Value of New Furniture 1700
20,500
Depreciation @ 10% (2050)
balance to be shown in B/S 18,450
Note: - It has been assumed that depreciation is charged on closing balance.
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 10 November 2009
Alternatively
WDV as on beginning of the year Rs. 20,000
+ Incease in the value of furniture due
to exchange transaction 500
20500
Depreciation @ 10% (2050) balance to be shown in B/S 18,450 Note: - It has been assumed that depreciation is charged on closing balance.
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