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On April 01, 2004 following balances appeared in the books of M/s Kanishka Traders: Furniture account Rs.50,000, Provision for depreciation on furniture Rs.22,000. On October 01,2004 a part of furniture purchased for rupees 20,000 on April 01,2000 was sold for Rs.5,000. On the same date new furniture costing Rs.25,000 was purchased. The depreciation was provided @10%p.a on original cost if the assets and no depreciation was charged on the asset in the year of sale. Prepare furniture account and provision for depreciation account for the year ending March 31, 2005

AccountancyClass 11CBSEAnswered 23 Jun 2026
Answer

Books of Kanishka Traders

Furniture Account

Dr. Cr.

Date ParticularsJ.FAmountDateParticularsJ.FAmount
2004
Apr.01
Oct.10		Balance b/d
Bank		50,000
25,000		2004
Oct.01
Apr.01		Bank
Provision for depreciation
Profit & loss
(loss on sale)
Balance c/d		5,000
8,000
7,000
55,000
75,00075,000

Provision for Depreciation on Furniture Account

Dr. Cr.

Date ParticularsJ.FAmountDateParticularsJ.FAmount
2004
oct.01
2005
Mar.31		Furniture (Accumulated depreciation on furniture sold)
Balance c/d		8,000
18,250		2004
Apr.01
2005
Mar.31		Balance b/d
Depreciation
(rs.3000 + 1250)		22,000
4,250
26,25026,250

Working Notes

1) Calculation of amount of depreciation
Calculation of loss on sale
Original cost of furniture on 01.10.2004
Less: Depreciation for 4 year from 01.04,2000 to 31.04.2004(no depreciation for the year of sale @10%p.a. on original cost
Value as on 01.10.2004
Sale Price		20,000
8,000
12000
5,000
2) Loss on Sale
Depreciation for the year 2004-05
10% of Rs.30,000(50,000-20,000)for full year
10% of Rs.25,000 for 6 months		7,000
3,000
1,250
4,250

Suggested Q&A

Accountancy · Class 11