Azad Ltd. purchased furniture on October 01, 2002 for Rs
4,50,000. On March 01, 2003 it purchased another furniture for Rs 3,00,000. On
July 01, 2004 it sold off the first furniture purchased in 2002 for Rs
2,25,000. Depreciation is provided at 15% p.a. on written down value method
each year. Accounts are closed each year on March 31. Prepare furniture
account, and accumulated depreciation account for the years ended on March 31,
2003, March 31, 2004 and March 31,2005. Also give the above two accounts if
furniture disposal account is opened.
Azad Ltd. purchased furniture on October 01, 2002 for Rs 4,50,000. On March 01, 2003 it purchased another furniture for Rs 3,00,000. On July 01, 2004 it sold off the first furniture purchased in 2002 for Rs 2,25,000. Depreciation is provided at 15% p.a. on written down value method each year. Accounts are closed each year on March 31. Prepare furniture account, and accumulated depreciation account for the years ended on March 31, 2003, March 31, 2004 and March 31,2005. Also give the above two accounts if furniture disposal account is opened.
Books of Azad Ltd. |
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Furniture Account |
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Dr. |
|
|
|
|
|
|
Cr. |
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
2002 |
|
|
|
2003 |
|
|
|
Oct.01 |
Bank (i) |
|
4,50,000 |
|
|
|
|
2003 |
|
|
|
Mar.31 |
Balance c/d |
|
7,50,000 |
Mar.01 |
Bank (ii) |
|
3,00,000 |
|
|
|
|
|
|
|
7,50,000 |
|
|
|
7,50,000 |
|
|
|
|
|
|
|
|
2003 |
|
|
|
2004 |
|
|
|
Apr.01 |
Balance b/d |
|
|
|
|
|
|
|
(i) 4,50,000, (ii) 3,00,000 |
|
7,50,000 |
Mar.31 |
Balance c/d |
|
7,50,000 |
|
|
|
7,50,000 |
|
|
|
7,50,000 |
|
|
|
|
|
|
|
|
2004 |
|
|
|
2004 |
|
|
|
Apr.01 |
Balance b/d |
|
7,50,000 |
July 01 |
Furniture Disposal |
|
4,50,000 |
|
(i) 4,50,000, (ii) 3,50,000 |
|
|
2005 |
|
|
|
|
|
|
|
Mar.31 |
Balance c/d |
|
3,00,000 |
|
|
|
7,50,000 |
|
|
|
7,50,000 |
|
|
|
|
|
|
|
|
Accumulated Depreciation Account |
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Dr. |
|
|
|
|
|
|
Cr. |
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
2003 |
|
|
|
2003 |
|
|
|
Mar.31 |
Balance c/d |
|
37,500 |
Mar.31 |
Depreciation |
|
|
|
|
|
|
|
(i) 33,750, (ii) 3,750 |
|
37,500 |
|
|
|
37,500 |
|
|
|
37,500 |
|
|
|
|
|
|
|
|
2004 |
|
|
|
2003 |
|
|
|
Mar.31 |
Balance c/d |
|
1,44,376 |
Apr.01 |
Balance b/d |
|
37,500 |
|
|
|
|
2004 |
|
|
|
|
|
|
|
Mar.31 |
Depreciation |
|
|
|
|
|
|
|
(i) 62,438, (ii) 44,378 |
|
1,06,876 |
|
|
|
1,44,376 |
|
|
|
1,44,376 |
|
|
|
|
|
|
|
|
2004 |
|
|
|
2004 |
|
|
|
July.01 |
Furniture Disposal |
|
1,09,456 |
Apr.01 |
Balance b/d |
|
1,44,376 |
2005 |
|
|
|
July.01 |
Depreciation (i) |
|
13,268 |
Mar.31 |
Balance c/d |
|
85,960 |
2005 |
|
|
|
|
|
|
|
Mar.31 |
Depreciation (ii) |
|
37,772 |
|
|
|
|
|
|
|
|
|
|
|
1,95,416 |
|
|
|
1,95,416 |
|
|
|
|
|
|
|
|
Furniture Disposal Account |
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Dr. |
|
|
|
|
|
|
Cr. |
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
2004 |
|
|
|
2004 |
|
|
|
Jul.01 |
Furniture |
|
4,50,000 |
Jul.01 |
Accumulated Dep. |
|
1,09,456 |
|
|
|
|
Jul.01 |
Bank |
|
2,25,000 |
|
|
|
|
Jul.01 |
Profit and Loss (Loss) |
|
1,15,544 |
|
|
|
|
|
|
|
|
|
|
|
4,50,000 |
|
|
|
4,50,000 |
|
|
|
|
|
|
|
|
Working Note:
Furniture (i)
Years |
Opening Balance |
|
Depreciation |
|
Closing Balance |
|
2002 – 2003 |
4,50,000 |
– |
33,750 |
|
= |
4,16,250 |
2003 – 2004 |
4,16,250 |
– |
62,438 |
|
= |
3,53,812 |
2004 |
3,53,812 |
– |
13,268 |
(3 months) |
= |
3,40,544 |
|
|
|
1,09,456 |
|
|
|
Balance on July 01, 2004 |
3,40,544 |
|
|
|
|
|
Less: Sale on July 01, 2004 |
(2,25,000) |
|
|
|
|
|
Loss on sale of furniture |
1,15,544 |
|
|
|
|
|