M/s. Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in computers account on April 01, 2000. On July 01, 2000 it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 01, 2001 for Rs 30,000. On April 01, 2004 the computer which has purchased on July 01, 2000 became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 01, 2004 for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31, 2001, 2002, 2003, 2004 and 2005. The computer is depreciated @10 p.a. on straight line method basis.

 

 

Books of M/s Excel Computers

Computer Account

Dr.

 

 

 

 

 

 

Cr.

Date

Particulars

J.F.

Amount

Rs

Date

Particulars

J.F.

Amount

Rs

2000

 

 

 

2001

 

 

 

Apr.01

Balance b/d (i)

 

50,000

Mar.31

Depreciation

 

 

Jul.01

Bank (ii)

 

2,50,000

 

(i) 12,000, (ii) 18,750,

 

 

2001

 

 

 

 

(iii) 750

 

31,500

Jan.01

Bank (iii)

 

30,000

Mar.31

Balance c/d

 

 

 

 

 

 

 

(i) 38,000, (ii) 2,31,250,

 

 

 

 

 

 

 

(iii) 29,250

 

2,98,500

 

 

 

3,30,000

 

 

 

3,30,000

 

 

 

 

 

 

 

 

2001

 

 

 

2002

 

 

 

Apr.01

Balance b/d

 

 

Mar.31

Depreciation

 

 

 

(i) 38,000, (ii) 2,31,250,

 

 

 

(i) 12,000 (ii) 25,000,

 

 

 

(iii) 29,250

 

2,98,500

 

(iii) 3,000

 

40,000

 

 

 

 

Mar.31

Balance c/d

 

 

 

 

 

 

 

(i) 26,000 (ii) 2,06,250,

 

 

 

 

 

 

 

(iii) 26,250

 

2,58,500

 

 

 

2,98,500

 

 

 

2,98,500

 

 

 

 

 

 

 

 

2002

 

 

 

2003

 

 

 

Apr.01

Balance b/d

 

 

Mar.31

Depreciation

 

 

 

(i) 26,000 (ii) 2,06,250,

 

 

 

(i) 12,000, (ii) 25,000,

 

40,000

 

(iii) 26,250

 

2,58,500

Mar.31

(iii) 3,000

 

 

 

 

 

 

 

Balance c/d

 

 

 

 

 

 

 

(i) 14,000, (ii) 1,81,250,

 

 

 

 

 

 

 

(iii) 23,250

 

2,18,500

 

 

 

2,58,500

 

 

 

2,58,500

 

 

 

 

 

 

 

 

2003

 

 

 

2004

 

 

 

Apr.01

Balance b/d

 

 

Mar.31

Depreciation

 

 

 

(i) 14,000, (ii) 1,81,250,

 

 

 

(i) 12,000, (ii) 25,000,

 

40,000

 

(iii) 23,250

 

2,18,500

 

(iii) 3,000

 

 

 

 

 

 

Mar.31

Balance c/d

 

 

 

 

 

 

 

(i) 2,000, (ii) 1,56,250,

 

 

 

 

 

 

 

(iii) 20,250

 

1,78,500

 

 

 

2,18,500

 

 

 

2,18,500

 

 

 

 

 

 

 

 

2004

 

 

 

2004

 

 

 

Apr.01

Balance c/d

 

 

Apr.01

Bank (ii)

 

20,000

 

(i) 2,000, (ii) 1,56,250,

 

 

Apr.01

Profit and Loss (Loss)

 

1,36,250

 

(iii) 20,250

 

1,78,500

2005

 

 

 

Aug.01

Bank (iv)

 

80,000

Mar.31

Depreciation

 

10,333 

 

 

 

 

 

(i) 2,000, (iii) 3,000, (iv) 5,333

 

 

 

 

 

 

Mar.31 

Balance c/d

 

 

 

 

 

 

 

(iii) 17,250, (iv) 74,667

 

91,917

 

 

 

2,58,500

 

 

 

2,58,500

 

 

 

 

 

 

 

 

 

Note: As per the solution, the closing balance, as on 31st March, 2005 is Rs 91,917; however, as per the book it is Rs 80,583.

 

 

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