books of ram shows on 1st jan 2006, furniture rs.20000/- during the year the part of furniturewhose book value on 1st jan 2006 is rs. 1200/-has been exchanged with another furniture by paying additional rs.500/-. Ram charged depreciation @ 10% p.a, the net amt of the furniture to be shown in the Bal. Sheet.?
Plz give ans
thanx
urgent
THe value of new furniture as per AS 10
WDV of old furniture given + Cash paid i.e; rs. 1700.
WDV as on beginning of the year Rs. 20,000
Less: - Furniture Given up (1200)
18,800
+ Value of New Furniture 1700
20,500
Depreciation @ 10% (2050)
balance to be shown in B/S 18,450
Note: - It has been assumed that depreciation is charged on closing balance.
Alternatively
WDV as on beginning of the year Rs. 20,000
+ Incease in the value of furniture due
to exchange transaction 500
20500
Depreciation @ 10% (2050) balance to be shown in B/S 18,450 Note: - It has been assumed that depreciation is charged on closing balance.
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