Question : M/s Excel Computers has a debit balance of Rs $50, 000$ (original cost Rs $1, 20, 000$ ) in Computers account on April 1, 2000. On July 1, 2000, it purchased another computer costing Rs $2, 50, 000$ . One more computer was purchased on January 1, 2001, for Rs $30, 000$ . On April 1, 2004, the computer which has purchased on July 1, 2000, became obsolete and was sold for Rs $20, 000$ . A new version of the IBM computer was purchased on August 1, 2004, for Rs $80, 000$ . Show Computers account in the books of Excel Computers for the years ended on March 31, 2001, 2002, 2003, 2004 and 2005. The computer is depreciated @ $10 %$ per annum on straight-line method basis.

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Solution

Answer
Dr Computer Account Cr
Date Particulars JF Amt.(Rs) Date Particulars JF Amt. (Rs)
2000 Apr 1 To Balance b/d $50, 000$ 2001 Mar 31 By Depreciation A/c
C1 = $12, 000$
C2 = $18, 750$
C3 = $750$
$31, 500$
Jan 1 To Bank A/c $30, 000$ Mar 31 By Balance c/d
C1 = $38, 000$
C2 = $2, 31, 250$
C3 = $29, 250$
$2, 98, 500$
$3, 30, 000$ $3, 30, 000$
2001 Apr 1 To Balance b/d
C1 = $38, 000$
C2 = $2, 31, 250$
C3 = $29, 250$
$2, 98, 500$ 2002 Mar 31 By Depreciation A/c
C1 = $12, 000$
C2 = $25, 000$
C3 = $3, 000$
$40, 000$
Mar 31 By Balance c/d
C1 = $26, 000$
C2= $2, 06, 250$
C3 = $26, 250$
$2, 58, 500$
$2, 98, 500$ $2, 98, 500$
2002 Apr 1 To Balance b/d
C1 = $26, 000$
C2 = $2, 06, 250$
C3 = $26, 250$
$2, 58, 500$ 2003 Mar 31 By Depreciation A/c
C1 = $12, 000$
C2 = $25, 000$
C3 = $3, 000$
$40, 000$
Mar 31 By Balance c/d
C1 = $14, 000$
C2 = $1, 81, 250$
C3 = $23, 250$
$2, 18, 500$
$2, 58, 500$ $2, 58, 500$

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Date	Particulars	JF	Amt.(Rs)	Date	Particulars	JF	Amt. (Rs)
2000 Apr 1	To Balance b/d		$50, 000$	2001 Mar 31	By Depreciation A/c C1 = $12, 000$ C2 = $18, 750$ C3 = $750$		$31, 500$
Jan 1	To Bank A/c		$30, 000$	Mar 31	By Balance c/d C1 = $38, 000$ C2 = $2, 31, 250$ C3 = $29, 250$		$2, 98, 500$
			$3, 30, 000$				$3, 30, 000$
2001 Apr 1	To Balance b/d C1 = $38, 000$ C2 = $2, 31, 250$ C3 = $29, 250$		$2, 98, 500$	2002 Mar 31	By Depreciation A/c C1 = $12, 000$ C2 = $25, 000$ C3 = $3, 000$		$40, 000$
				Mar 31	By Balance c/d C1 = $26, 000$ C2= $2, 06, 250$ C3 = $26, 250$		$2, 58, 500$
			$2, 98, 500$				$2, 98, 500$
2002 Apr 1	To Balance b/d C1 = $26, 000$ C2 = $2, 06, 250$ C3 = $26, 250$		$2, 58, 500$	2003 Mar 31	By Depreciation A/c C1 = $12, 000$ C2 = $25, 000$ C3 = $3, 000$		$40, 000$
				Mar 31	By Balance c/d C1 = $14, 000$ C2 = $1, 81, 250$ C3 = $23, 250$		$2, 18, 500$
			$2, 58, 500$				$2, 58, 500$