Question

M/s. Excel Computers has a debit balance of Rs 50,000 (original cost Rs 1,20,000) in computers account on April 01, 2010. On July 01, 2010 it purchased another computer costing Rs 2,50,000. One more computer was purchased on January 01, 2011 for Rs 30,000. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for Rs 20,000. A new version of the IBM computer was purchased on August 01, 2014 for Rs 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31 2011, 2012, 2013, 2014 and 2015. The computer is depreciated @10 p.a. on straight line method basis.

Answer 1

Books of M/s Excel Computers
Computer Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs	Date	Particulars	J.F.	Amount Rs
2010				2011
Apr.01	Balance b/d (i)		50,000	Mar.31	Depreciation
Jul.01	Bank (ii)		2,50,000		(i) 12,000, (ii) 18,750,
2011					(iii) 750		31,500
Jan.01	Bank (iii)		30,000	Mar.31	Balance c/d
					(i) 38,000, (ii) 2,31,250,
					(iii) 29,250		2,98,500
			3,30,000				3,30,000
2011				2012
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 38,000, (ii) 2,31,250,				(i) 12,000 (ii) 25,000,
	(iii) 29,250		2,98,500		(iii) 3,000		40,000
				Mar.31	Balance c/d
					(i) 26,000 (ii) 2,06,250,
					(iii) 26,250		2,58,500
			2,98,500				2,98,500
2012				2013
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 26,000 (ii) 2,06,250,				(i) 12,000, (ii) 25,000,		40,000
	(iii) 26,250		2,58,500	Mar.31	(iii) 3,000
					Balance c/d
					(i) 14,000, (ii) 1,81,250,
					(iii) 23,250		2,18,500
			2,58,500				2,58,500
2013				2014
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 14,000, (ii) 1,81,250,				(i) 12,000, (ii) 25,000,		40,000
	(iii) 23,250		2,18,500		(iii) 3,000
				Mar.31	Balance c/d
					(i) 2,000, (ii) 1,56,250,
					(iii) 20,250		1,78,500
			2,18,500				2,18,500
2014				2014
Apr.01	Balance c/d			Apr.01	Bank (ii)		20,000
	(i) 2,000, (ii) 1,56,250,			Apr.01	Profit and Loss (Loss)		1,36,250
	(iii) 20,250		1,78,500	2015
Aug.01	Bank (iv)		80,000	Mar.31	Depreciation		10,333
					(i) 2,000, (iii) 3,000, (iv) 5,333
				Mar.31	Balance c/d
					(iii) 17,250, (iv) 74,667		91,917
			2,58,500				2,58,500

Note: As per the solution, the closing balance, as on 31^st March, 2005 is Rs 91,917; however, as per the book it is Rs 83,917.