Question

Question : Azad Ltd purchased furniture on October 1, 2002 for Rs $4,50,000$. On March 1, 2003, it purchased another furniture for Rs $3,00,000$. On July 1, 2004, it sold it off the first furniture purchased in 2002 for Rs $2,25,000$. Depreciation is provided at $15\%$ per annum on written down value method each year. Accounts are closed each year on March 31. Prepare Furniture account and Accumulated depreciation account for the years ended on March 31, 2003, March 31, 2004, and March 31, 2005, Also give the above two accounts if Furniture disposal account is opened.

Answer 1

Answer :
Dr Furniture Account Cr

Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt.(Rs)
2002 Oct 1	To Bank A/c (F1)		$4,50,000$	2003 Mar 31	By Balance c/d		$7,50,000$
2003 Mar 1	To Bank A/c (F2)		$3,00,000$
			$7,50,000$				$7,50,000$

Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt.(Rs)
2003 Apr 1	To Balance b/d F1 = $4,50,000$ F2 = $3,00,000$		$7,50,000$	2004 Mar 31	By Balance c/d F1 = $4,50,000$ F2 = $3,00,000$		$7,50,000$
			$7,50,000$				$7,50,000$
2004 Apr 1	To Balance b/d F1 = $4,50,000$ F2 = $3,00,000$		$7,50,000$	2004 Jul 1	By Furniture Disposal A/c (F1)		$4,50,000$
				2005 May 31	By Balance c/d (F2)		$3,00,000$
			$7,50,000$				$7,50,000$

Dr Accumulated Depreciation Account Cr

Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt.(Rs)
2003 Mar 31	To Balance c/d		$37,500$	2003 Mar 31	By Depreciation A/c F1 = $33,750$ F2 = $3,750$		$37,500$
			$37,500$				$37,500$
2004 May 31	To Balance c/d		$1,44,376$	2003 Apr	By Balance b/d		$37,500$
				2004 Mar 31	By Depreciation A/c F1 = $62,438$ F2 = $44,438$		$1,06,876$
			$1,44,376$				$1,44,376$
2004 Jul 1	To Furniture Disposal A/c		$1,09,456$	2004 Apr 1	By Balance b/d		$1,44,376$
				Jul 1	By Depreciation A/c		$13,268$
2005 Mar 31	To Balance c/d		$85,960$	2005 Mar 31	By Depreciation A/c		$37,772$
			$1,95,416$				$1,95,416$