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.
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.