AccountancyCLASS 11CBSE
answered 23 Jun 2026On 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
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Books of Kanishka Traders
Furniture Account
Dr. Cr.
| Date | Particulars | J.F | Amount | Date | Particulars | J.F | Amount |
| 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 | ||
| 75,000 | 75,000 |
Provision for Depreciation on Furniture Account
Dr. Cr.
| Date | Particulars | J.F | Amount | Date | Particulars | J.F | Amount |
| 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 | ||
| 26,250 | 26,250 |
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 |