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
Hemchand Kohli (Accountant) (889 Points)
08 June 2012Opening 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
CA CS Pushkar Agarwal
(Service)
(155 Points)
Replied 08 June 2012
ANS:2025
ON (20,000-1200) @ 10% FOR FULL YEAR
ON 1200 @ 10% FOR 6 MONTHS
ON (1200+500) @ 10% FOR 6 MONTHS
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
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.
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
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.
Mayank Mall
(CA-Final)
(316 Points)
Replied 08 June 2012
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
Hemchand Kohli
(Accountant)
(889 Points)
Replied 08 June 2012
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
intermediate(ipc)course
(no)
(1460 Points)
Replied 08 June 2012
value of furniture is 18000 instead of 18450 regarding hemchand.
Mayank Mall
(CA-Final)
(316 Points)
Replied 08 June 2012
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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