Anonymous
Jan 15
Q1?
Ketan purchased furniture of Rs 160,000/- on 1.10.2016. Purchased another furniture of Rs 2100001-on 1.7.2017. Depreciation is provided @ 15% p-a. every year. On 1.1.8 2019 sold first furniture for Rs. 70000Prepare ledger furniture & depreciation account for three years 2016-17, 17-18, 18-19
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Jan 15
To prepare the furniture and depreciation account for the three years 2016-17, 17-18, and 18-19, we need to calculate the depreciation expense for each year and record the purchase and sale of furniture.
Here is the breakdown of the account:
Furniture and Depreciation Account
Year 2016-17:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.10.2016 Furniture (Purchase) 160,000 Dr.
To Cash/Bank 160,000
31.12.2016 Depreciation Expense 24,000 Dr.
To Accumulated 24,000
Depreciation
Year 2017-18:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.7.2017 Furniture (Purchase) 2,100,001 Dr.
To Cash/Bank 2,100,001
31.12.2017 Depreciation Expense 315,000 Dr.
To Accumulated 315,000
Depreciation
Year 2018-19:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.1.2019 Accumulated 339,000 Dr.
Depreciation 70000 Dr.
To Furniture (Sale) 409,000
To Profit and Loss 30,000
(Loss on Sale)
Note: The depreciation expense is calculated by multiplying the furniture's cost by the depreciation rate (15%) for each year.
Let me know if you need any further assistance.
Here is the breakdown of the account:
Furniture and Depreciation Account
Year 2016-17:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.10.2016 Furniture (Purchase) 160,000 Dr.
To Cash/Bank 160,000
31.12.2016 Depreciation Expense 24,000 Dr.
To Accumulated 24,000
Depreciation
Year 2017-18:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.7.2017 Furniture (Purchase) 2,100,001 Dr.
To Cash/Bank 2,100,001
31.12.2017 Depreciation Expense 315,000 Dr.
To Accumulated 315,000
Depreciation
Year 2018-19:
Date Particulars Amount (Rs.) Amount (Rs.)
--------------------------------------------------------------
1.1.2019 Accumulated 339,000 Dr.
Depreciation 70000 Dr.
To Furniture (Sale) 409,000
To Profit and Loss 30,000
(Loss on Sale)
Note: The depreciation expense is calculated by multiplying the furniture's cost by the depreciation rate (15%) for each year.
Let me know if you need any further assistance.
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