Mahesh traders Solapur purchased furniture on 1st April 2014 for ₹20,000. In the same year on 1st Oct additional furniture was purchased for ₹10,000. On 1st Oct 2015, the Furniture purchased on 1st April 2014 was sold for ₹15,000 and on the same day a new Furniture was purchased for ₹20,000. The firm charged depreciation at 10% p.a. on Reducing Balance Method. Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017. Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017.

 3. Mahesh traders Solapur purchased furniture on 1st April 2014 for ₹20,000. In the same year on 1st Oct additional furniture was purchased for ₹10,000

On 1st Oct 2015, the Furniture purchased on 1st April 2014 was sold for ₹15,000 and on the same day a new Furniture was purchased for ₹20,000.

The firm charged depreciation at 10% p.a. on Reducing Balance Method. 

Prepare Furniture Account and Depreciation Account for the year ending 31st March 2015, 2016 and 2017.

Solution:

In the Books of Mahesh Traders Solapur

Furniture Account

Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
2014				2015
1st April	To Cash/Bank A/c		20,000	31st March	By Depreciation		2,500
1st Oct	To Cash/Bank A/c		10,000
				31st March	By Balance31 c/d		27,500
			30,000				30,000

2015				2015
1st April	To Balance b/d		27,500	1st Oct	By Depreciation		900
1st Oct	To cash/bank A/c		20,000	1st Oct	By Cash/Bank A/c		15,000
				1st Oct	By loss on sale		2,100
				2016
				31st March	By depreciation		1,950
				31st March	By Balance c/d		27,550
			47,500				47,500
2016				2017
1st April	To Balance b/d		27,550	31st March	By Depreciation		2,755
				31st March	By Balance c/d		24,795
			11,750				11,750

Depreciation Account

Date	Particulars	JF	Amount	Date	Particulars	JF	Amount
2015				2015
31st March	To Machinery A/c		2,500	31st March	By Profit& Loss A/c		2,500
1st Oct	To Machinery A/c		900
			3,400				3,400
2016				2016
31st March	To Machinery A/c		1,950	31st March	By Profit & Loss A/c		1,950
			1,950				1,950
2017				2017
31st march	To machinery A/c		2,755	31st March	By Profit & Loss A/c		2,755
			2,755				2,755

Calculation:

1. 31st March 2015

(M1) 20,000*10% = 2,000

(M2) 10,000*10%*6/12 = 500

2. 1st Oct 2015

(M1) 18,000*10%*6/12 = 900

 31st March 2016

(M2) 9,500*10% = 950

(M3) 20,000*10%*6/12 = 1,000

3. 31st March 2017

(M2) 8,550*10% = 855

(M3) 19,000*10% = 1,900

Depreciation Calculator along with month and percentage

Car Insurance online

Car Insurance Renewal