Cpt - depreciation

Opening Balance as on 1st jan 20000.00 and Rs. 1200/- furniture has been exchanged with additional pay Rs. 500/- on same date and depreciation Rate 10% then what will be closing value of furniture in the balance sheet.

Please solve the question

Replies (7)

ANS:2025

ON (20,000-1200) @ 10% FOR FULL YEAR

ON 1200 @ 10% FOR 6 MONTHS

ON (1200+500) @ 10% FOR 6 MONTHS

closing value of furniture is 19580

first we open furniture a\c

debit side total :

op balance 20000 + exchange of furniture 1200 + additional pay 500 = 21700

credit side total = (dep 10% 21200) 2120

closing balance of furniture = 21700-2120 = 19580 ans.

closing value of furniture is 19580

first we open furniture a\c

debit side total :

op balance 20000 + exchange of furniture 1200 + additional pay 500 = 21700

credit side total = (dep 10% 21200) 2120

closing balance of furniture = 21700-2120 = 19580 ans.

Books of accounts if as per accounting year then only 3 months dep or else if calendar year then 12months dep.

 

Dep....

On Opening Bal. = 10% X 20000 = 2000

On Additions = 1200 + 500 ( 500 is cap. exp. incurred to acquire the asset ).....therefore 10% X 1700 = 170

.........

Total Furniture = 20000 + 1700 = 21700

Less: DEP. (2170)

Closing Bal. = 19530

In this question how u have caclulated deprecation of Rs. 2,120/- and according to me answer should be 18,450/-  as follows:

 

Opening 20,000 - 1200 + 1700 = 20,500.00 

Depreciation will be 10% of 20,500/- = 2050.00

Value of Furniture will be 18450.00

value of furniture is 18000 instead of 18450 regarding hemchand.

just a sec., u exchanged furniture for furniture, i mean ofcourse, i forgot......well so in the case I'll agree with hemchand.....dep. = 2050

and closing balance 18450.

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