Advanced accounting

For Fixed Assets:

Value of Fixed Assests as on 31/03/2010 is Rs.65,000

Less: Depreciation (Rs.65000/5years) {the usage pattern of the Asset is even} is Rs.13,000

Balance as on 31/03/2011 is Rs. 52,000

For Trade Payable:

As per the adjustment (g), closing trade payable for a going concern is Rs.12,000 (actual).

In case, the business is not of a going concern then the final settlement to be made to the supplier will be after discount of 5%, which is 12,000*5%=600. Thus final settlement will be Rs.12,000-Rs.600= Rs.11,400.

1. Value of Assets is 65000 and it has to be depreciated within 5 Years hence yearly depreciation will be    calculated as under:

Rs.65,000/5 Years = Rs.13000/-

2. Value of Assets 60,000/- less Depreciation for the year 13,000/- = WDV Rs.53,000/-

3. Case I is based on going concern basis hence full value of Trade Payables for Rs.12,000/- will be taken in case I and in case II, Trade Payables of Rs. 11,400/- (Rs.12,000 less 5%) will be taken.