S. Narayan from Mumbai purchased Furniture for his office
costing Rs. 1,04,000 on 1st July 1987. Estimated life of the
Furniture is 10 years and scrap value Rs. 24,000. The Furniture was sold on 31st
December 1990 for Rs. 70,000. The accounts are closed on 31st 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
|
