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ans for q2 is cost=20000 dep for first 6 mnts

20000*10%*6/12 = 1000

for next 6 mnts

19300*10%*6/12 = 965

total dep 1965

cost of machine 20500-1965=18535

sry if its wrong

q2 ans is 18475 

20000*10%*6/12=1000

20500*10%*6/12=1025

total dep is 2025

cost of furniture=20500-2025=18475

Hi, the answer to ur question is :

(1) goodwill is always calculated on the basis of normal profit earning capacity of the business. so calculate it removing all abnormalities. hence answer given by vijay manwani is correct.

(2) calculation of closing WDV :

In this question opening balance asset account will be split into two parts:

not sold/exchanged (20,000 - 1200) = 18,800 used for full year.

sold/exchanged                                    =  used for half year (assumed as question is silent about date of exchange)

 book value of part exchanged as on 30.6.  = 1,200 - dep(1,200 *10% x 6/12) = 1,200 - 60 = 1,140

value of new furniture acquired = 1,140 + 500 = 1,640

now closing balance of EXISTING furniture :

18,800 - dep (18,800 x 10% x 12/12) =18,800-1,880 = 16,920

1,640 - dep. (1,640 x 10% x 6/12)      =  1,640 - 82      =    1,558

closing balance of furniture account                             = 18,478

Regards, CA Shakuntala Chhangani

Thanks A lot for detail Answer to CA Shakuntala Chhangani.