Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2018.
Prepare Furniture Account for the year ended 31st March, 2019.

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Solution

Furniture Account

Dr.

Cr.

Date

Particulars

Amount

(₹)

Date

Particulars

Amount

(₹)

2018

2018

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

2019

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

(₹)

Book Value of Furniture (i) as on April 01, 2018

20,000

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

(1,500)

Book Value on December 31, 2018

18,500

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

(3,700)

Sale Value of Furniture

14,800

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Q. The book value of furniture on 1st April, 2018 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on sale of furniture. Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2019.

Q. The book value of furniture on 1st April, 2017 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September,2017. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on sale of furniture . Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2018.

Q. From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March ,2019
Dr.				Cr.
Receipts		(₹)	Payments	(₹)
To Balance b/d		7,000	By Salaries	28,000
To Subscriptions:			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance c/d	4,000
To Surplus from Entertainment Events		8,000
To Sale of Old Newspapers		2,000

		60,000		60,000

(a) The club has 50 members each paying an annual subscription of ₹ 500. Subscriptions Outstanding on 31st March,2018 were ₹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to ₹ 2,000. Salaries paid in the year ended 31st March, 2019 included ₹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at ₹ 2,00,000; Furniture ₹ 20,000 and Books ₹ 20,000.
(d) Provide depreciation on Furniture at 10%.

Q. Prepare Income and Expenditure Account from the following particulars of Youth Club for the year ended on 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.					Cr.
Receipts		₹	Payments	₹
To Balance b/d (Cash)		32,500	By Salaries	31,500
To Subscription:			By Postage	1,250
2016-17	1,500		By Rent	9,000
2017-18	60,000		By Printing and Stationery	14,000
2018-19	1,800	63,300	By Sports Material	11,500
To Donations (Billiards Table)		90,000	Bu Miscellaneous Expenses	3,100
To Entrance Fees		1,100	By Furniture (1st October, 2017)	20,000
To Sale of Old Magazines		450	By 10% Investment (1st October, 2017)	70,000
			By Balance c/d (31st March, 2018)	27,000


		1,87,350		1,87,350

Additional Information:
(i) Subscription outstanding as at 31st March, 2018 ₹ 16,200.
(ii) ₹ 1,200 is still in arrears for the year 2016-17 for subscription.
(iii) Value of sports material at the beginning and at the end of the year was ₹ 3,000 and ₹ 4,500 respectively.
(iv) Depreciation to be provided @ 10% p.a. on furniture.

Following information was extracted from the books of a Not-for-Profit Organisation:
Furniture as on 31-3-2011 Rs 2,20,000. Furniture (having a book value as on 1-4-2011 of Rs 20,000) sold at a loss of $20 %$ on 31-12-2011. Furniture is to be depreciated @ $10 %$ p.a Furniture costing Rs 1,50,000 was also purchased on 1-10-2011. Find out the value of furniture as on 31-3-2012.

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

2018			2018
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	2019
			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 (₹)
Book Value of Furniture (i) as on April 01, 2018	20,000
Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12]	(1,500)
Book Value on December 31, 2018	18,500
Less: Loss on Sale of Furniture (18,500 × 20%)	(3,700)
Sale Value of Furniture	14,800