What are the journal entries to be passed in 2010-11 A/cs?
In 2009-10 we purchase an asset for RS-10000 for credit base and charge depreciation RS-500 in 2009-10
In 17-june-2011 we return the asset due to non functioning, No amount is paid till the date of return and no amount is payable because of return.
You should charge depreciation for the year ending 31st march 2011 of Rs. 475
And when the machine is returned pass the entry:-
Creditor A/c Debit 10000
to Asset Account 9025 (10000-500-475)
to Depreciation 975
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