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Standard XI

Accountancy

Accumulated Depreciation

Given that th...

Question

Given that the value of furniture on 1.1.93 is Rs. 8,000, furniture purchased during the year is Rs. 4,000, sale of furniture no loss no profit basis is Rs. 2,000, and the furniture is valued at Rs. 7,000 on 31.12.93, the depreciation for the year 1993 will be:

Rs. 1,000

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Rs. 3,000

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Rs. 5,000

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Rs. 7,000

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Solution

The correct option is C Rs. 3,000
Option B is correct.
Value of Furniture on 1.1.93 = 8000
Furniture purchased = 4000
Sale of furniture = 2000
Profit or loss on sale = 0
Value of furniture on 31.12.93 = 7000
Depreciation = opening value + purchase - sale - closing value
8000 + 4000 - 2000 - 7000 = 3000.

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Given that the value of furniture on 1.1.93 is Rs. 8,000, furniture purchased during the year is Rs. 4,000, sale of furniture no loss no profit basis is Rs. 2,000, and the furniture is valued at Rs. 7,000 on 31.12.93, the depreciation for the year 1993 will be:

The correct option is C Rs. 3,000Option B is correct. Value of Furniture on 1.1.93 = 8000Furniture purchased = 4000Sale of furniture = 2000Profit or loss on sale = 0Value of furniture on 31.12.93 = 7000Depreciation = opening value + purchase - sale - closing value 8000 + 4000 - 2000 - 7000 = 3000.