Question : Calculate the amount of depreciation on Furniture and loss on the sale of furniture:
Opening balance of furniture Rs 2,000
Closing balance of furniture Rs 1,080
Sale of furniture Rs 750
Depreciation charged on furniture is 10%.
Option 1: loss on sale of furniture Rs nil and depreciation charged Rs 108
Option 2: depreciation on furniture Rs 200 and gain on sale of furniture Rs 30
Option 3: loss on sale of furniture Rs 100 and depreciation charged Rs 200
Option 4: None of the above
Answer (1)
12th Jan, 2024
Correct Answer: depreciation on furniture Rs 200 and gain on sale of furniture Rs 30
Solution : FURNITURE ACCOUNT
| Particulars | Amount | Particulars | Amount |
|
To Balance b/d
To I&E A/c (Gain) (b/f) |
2,000
30 |
By Bank A/c (Sale)
By Depreciation A/c (10% X Rs.2,000) By Balance c/d |
750
|
| 2,030 | 2,030 |
Hence, the correct option is 2.
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