Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2017. It sold old furniture , having book value of ₹ 20,000 as at 1st April , 2017 at a loss of 20% on 31st December, 2017 . Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2017.
Prepare Furniture Account for the year ended 31st March, 2018.

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Solution

Furniture Account

Dr.

Cr.

Date

Particulars

Amount

(Rs)

Date

Particulars

Amount

(Rs)

2015

2015

Apr. 01

Balance b/d

Dec. 31

Depreciation (ii) (for 9 Months)

1,500

(i) 2,00,000

Dec. 31

Bank (Sale (ii))

14,800

(ii) 20,000

2,20,000

Dec. 31

Income and Expenditure (Loss on Sale)

3,700

Oct. 01

Bank (iii)

1,50,000

2016

Mar. 31

Depreciation

(i) 20,000

(iii) 7,500 (for 6 Months)

27,500

Mar. 31

Balance c/d

(i) 1,80,000

(iii) 1,42,500

3,22,500

3,70,000

3,70,000

Working Note:

Calculation of Profit or Loss on Sale of Furniture

Particulars

Amount

(Rs)

Book Value of Furniture (i) as on April 01, 2015

20,000

Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12]

(1,500)

Book Value on December 31, 2015

18,500

Less: Loss on Sale of Furniture (18,500 × 20%)

(3,700)

Sale Value of Furniture

14,800

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Q. From the following Receipts and Payments Account and additional information given below , prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31 st March, 2018
Dr.				Cr.
Receipts		Amount (₹)	Payments	Amount (₹)
To Balance b/d			By General Expenses	32,000
Cash in Hand		40,000	By Newspaper	18,500
Cash at Bank		1,55,500	By Electricity	30,000
To Subscriptions:			By Fixed Deposit with Bank	1,80,000
2016-17	12,000		(On 30th September, 2017 @ 10%p.a.)
2017-18	2,65,000		By Books	70,000
2018-19	5,000	2,82,000	By Salary	36,000
To Sale of Old Newspaper		12,500	By Rent	65,000
To Government Grant		1,20,000	By Postage Charges	3,000
To Sale of Old Furniture		37,000	By Furniture (purchased)	1,05,000
(Book value ₹50,000)			By Balance c/d:
To Interest received on Fixed Deposit		4,500	Cash in Hand	30,000
			Cash at Bank	82,000
		6,51,500		6,51,500

Additional information:
(i) Subscription outstanding as on 31st March, 2017 ₹ 20,000 and on 31st March, 2018 ₹ 15,000.
(ii) On 31st March , 2018, salary outstanding ₹ 6,000 and one month rent paid in advance.
(iii) On 1st April, 2017, society owned furniture ₹ 1,20,000 and books ₹ 50,000.

Azad Ltd. purchased furniture on October 01, 2014 for Rs 4,50,000. On March 01, 2015 it purchased another furniture for Rs 3,00,000. On July 01, 2016 it sold off the first furniture purchased in 2014 for Rs 2,25,000. Depreciation is provided at 15% p.a. 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, 2015, March 31, 2016 and March 31, 2017. Also give the above two accounts if furniture disposal account is opened.

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Furniture Account
Dr.						Cr.
Date	Particulars	Amount (Rs)	Date	Particulars	Amount (Rs)

2015			2015
Apr. 01	Balance b/d		Dec. 31	Depreciation (ii) (for 9 Months)	1,500
	(i) 2,00,000		Dec. 31	Bank (Sale (ii))	14,800
	(ii) 20,000	2,20,000	Dec. 31	Income and Expenditure (Loss on Sale)	3,700
Oct. 01	Bank (iii)	1,50,000	2016
			Mar. 31	Depreciation
				(i) 20,000
				(iii) 7,500 (for 6 Months)	27,500
			Mar. 31	Balance c/d
				(i) 1,80,000
				(iii) 1,42,500	3,22,500
		3,70,000			3,70,000

Particulars	Amount (Rs)
Book Value of Furniture (i) as on April 01, 2015	20,000
Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12]	(1,500)
Book Value on December 31, 2015	18,500
Less: Loss on Sale of Furniture (18,500 × 20%)	(3,700)
Sale Value of Furniture	14,800