Big soft LLC was Purchase 10 Laptop @ 50,000/each on 15-Sep-2016, installation & transport cost was 20,000 & 50,000 respectively. on 01-Jan-2018 due to fire happened on floor 03 Laptops is burned. Laptops were sold as scrap @ 6,000/-. Life of the Assets is 10 years.
Please make the journal entries for purchase, depreciation and disposal during 2016-17 and 2017-18.
and how much amount will be show in Balance Sheet on 31-3-2018.
15/9/2016 Lap top Dr 570000
To sundry crditors Cr 570000
(being purchase of lpa tops 10 no ) Lap tops under Fixed asset , expense 50000&20000 are capital expense
31/3/2017 Depreciation A/c Dr 57000
Lap top A/c Cr 57000
( assuming depreciation rate 10% for year )
31/3/2017 Profit & loss A/c Dr 57000
To Deperciation 57000
( Being deperciation transfer to P&L)
31/3/2017 asset value will be 513000 in balance sheet
1/4/2017 opeing balance Lap top 513000/-
1/1/2018 Bank A/c Dr 6000
Depreciation A/c Dr 15390
profit and loss A/c Dr 106860
To Lap Top 128250
( 3 Lap tops were sold , value of 1 lap top 42750 , loss trensfer to P&L )
31/3/2018 Depreciation A/c Dr 29925
To Lap Top A/c Cr 29925
( Depreciation for remaining 7 lap tops )
31/3/2018 Profit & Loss A/c Dr 29925
To Depreciation A/c Cr 29925
( Depreciation transfer to profit and loss a/ c)
31/3/2018 Value of the 7 Lap tops in the balance sheet after deperciation 269325 /-
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