Shantikunj Company, Rajoli purchased furniture
worth Rs. 38,400 and paid Rs.
1,600 for installation charges on 1st
January, 2004. (10)
On 31st March every year, the company charged depreciation @
10% p.a. on original cost.
On 1st
Oct.2004 the company purchased an additional furniture costing Rs. 24,000.
The
company sold furniture for Rs. 31,500 on 31st
December 2005, which was purchased on 1st January 2004.
Company
purchased a new furniture worth Rs. 20,000 on 31st March,
2006.
You
are required to prepare Furniture account and depreciation account for the
years 2003-2004, 2004-2005 and 2005-2006.
In the books of Shantikunj Company
|
Date
|
Particulars
|
JF
|
Amt Rs.
|
Date
|
Particulars
|
JF
|
Amt Rs.
|
|
1-1-04
|
To Cash / Bank A/c
|
|
|
|
By Depreciation A/c
By Balance c/d
|
|
1,000
39,000
|
|
40,000
|
31-3-04
31-3-04
|
||||||
|
40,000
|
40,000
|
||||||
|
|
|
|
|
|
|
|
|
|
1-4-04
1-10-04
|
To balance b/d
To Cash / Bank A/c
|
|
39,000
24,000
|
31-3-05
31-3-05
|
By Depreciation A/c
(4000 + 1200)
By Balance c/d
|
|
5,200
57,800
|
|
63,000
|
63,000
|
||||||
|
|
|
|
|
|
|
|
|
|
1-4-05
31-3-06
|
To balance b/d
To Cash / Bank
|
|
57,800
20,000
|
31-12-05
31-12-05
31-12-05
31-3-06
31-3-06
|
By Cash / Bank A/c
By Profit & Loss A/c
By Depreciation A/c
By Depreciation A/c
By Balance c/d
|
|
31,500
500
3,000
2,400
40,400
|
|
77,800
|
77,800
|
||||||
|
|
|
|
|
|
|
|
|
|
1-4-06
|
To balance b/d
|
|
40,400
|
|
|
|
|
|
|
|
|
40,400
|
|
|
|
40,400
|
Depreciation A/c.
|
Date
|
Particulars
|
JF
|
Amt Rs.
|
Date
|
Particulars
|
JF
|
Amt Rs.
|
|
31-3-04
|
To Furniture A/c
|
|
1,000
|
31-3-04
|
By Profit & Loss A/c
|
|
1,000
|
|
|
|
|
1,000
|
|
|
|
1,000
|
|
31-3-05
|
To Furniture A/c
|
|
5,200
|
31-3-05
|
By Profit & Loss A/c
|
|
5,200
|
|
|
|
|
5,200
|
|
|
|
5,200
|
|
31-12-05
|
To Furniture A/c
To Furniture A/c
|
|
3,000
2,400
|
31-3-06
|
By Profit & Loss A/c
|
|
5,400
|
|
|
|
|
5,400
|
|
|
|
5,400
|
Working Note
:-
To find Profit or loss on sale of Furniture
Original cost
as on 1-1-04 40,000
(-)
Depreciation (3 months) 1,000
Book value as
on 1-1-04 39,000
(-) 10%
Dep. (2004 – 05)
4,000
Book Value as
on 1-4-05 35,000
(-)
Depreciation (9 months) 3,000
Book value as
on 31-12-05 32,000
Less: Selling
Price 31,500
Loss on Sale
