DEPRECIATION QUESTION WITH ANSWER

S. Narayan from Mumbai purchased Furniture for his office costing Rs. 1,04,000 on 1^st July 1987. Estimated life of the Furniture is 10 years and scrap value Rs. 24,000. The Furniture was sold on 31^st December 1990 for Rs. 70,000. The accounts are closed on 31^st March every year. From the above information prepare Furniture account and Depreciation account for the years 1987, 1988, 1989 and 1990, by charging depreciation under Fixed Instalment Method.

DATE	PARTICULARS	AMOUNT	DATE	PARTICULARS	AMOUNT
1.4.87	To balance b/d	NIL	31.3.88	By depreciation	6000
1.7.87	To cash/ bank ac	104000	31.3.88	By balance c/d	98000
		104000			104000
1.4.88	To balance b/d	98000	31.3.89	By depreciation a/c	8000
			31.3.89	By balance c/d	90000
		98000			98000
1.4.89	To balance b/d	90000	31.3.90	By depreciation a/c	8000
			31.3.90	By balance c/d	82000
		90000			90000
1.4.90	To balance b/d	82000	31.12.90	By deprecation a/c	6000
			31.12.90	By cash/ bank a/c	70000
			31.12.90	By profit / loss a/c	6000
		82000			82000