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
Correct Answer: depreciation on furniture Rs 200 and gain on sale of furniture Rs 30
Solution : FURNITURE ACCOUNT
750 200 1,080
Hence, the correct option is 2.
Question : Furniture as on 31st March, 2019—Rs. 4,40,000; Furniture (having book value as on 1st April, 2019—Rs. 40,000) sold at a loss of 20% on 31st December, 2019. Furniture is to be depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on
Question : The book value of the furniture on 1st April 2019 is Rs. 30,000. Half of this furniture is sold for Rs. 10,000 on 30th September 2019. Depreciation is to be charged on furniture @ 10% p.a. Calculate loss on sale of furniture.
Question : Interest on investment received @8%pa for full year Rs 40,000.
Calculate the amount of Investment at the beginning of the year and also calculate of value of Investment at the end of the year.
Question : Furniture as of 1st April, 2019—Rs. 2,20,000; Furniture (having book value as on 1st April, 2019—Rs. 20,000) sold at a gain (profit) of 20% on 31st December, 2019. Furniture purchased on 1st October, 2019 for Rs. 1,00,000; Charge depreciation @ 10% p.a.
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