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Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ?
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Value of furniture on 1.1.93 is 8000, furniture purchase during the ye...
Depreciation for Furniture in 1993
Given information:
- Value of furniture on 1.1.93 is ₹8000
- Furniture purchase during the year is ₹4000
- Sale of furniture on no loss no profit basis is ₹2000
- Furniture is valued at ₹7000 on 31.12.93
To calculate the depreciation for furniture in 1993, we need to consider the following:
1. Initial Value of Furniture
The initial value of furniture on 1.1.93 is ₹8000.
2. Purchase of Furniture During the Year
Furniture purchase during the year is ₹4000. This amount needs to be added to the initial value of furniture.
Net Value of Furniture = Initial Value + Purchase during the year
Net Value of Furniture = ₹8000 + ₹4000 = ₹12000
3. Sale of Furniture
Sale of furniture on no loss no profit basis is ₹2000. This amount needs to be deducted from the net value of furniture.
Net Value of Furniture after Sale = Net Value of Furniture - Sale of Furniture
Net Value of Furniture after Sale = ₹12000 - ₹2000 = ₹10000
4. Value of Furniture at the End of the Year
The furniture is valued at ₹7000 on 31.12.93. This value needs to be compared with the net value of furniture after sale to calculate the depreciation.
Depreciation for Furniture = Net Value of Furniture after Sale - Value of Furniture at the End of the Year
Depreciation for Furniture = ₹10000 - ₹7000 = ₹3000
Therefore, the depreciation for furniture in 1993 is ₹3000.
Conclusion
Depreciation for an asset is the reduction in its value due to wear and tear, obsolescence, or other factors. It is important to calculate depreciation accurately to determine the actual value of assets and to make informed financial decisions.
Given information:
- Value of furniture on 1.1.93 is ₹8000
- Furniture purchase during the year is ₹4000
- Sale of furniture on no loss no profit basis is ₹2000
- Furniture is valued at ₹7000 on 31.12.93
To calculate the depreciation for furniture in 1993, we need to consider the following:
1. Initial Value of Furniture
The initial value of furniture on 1.1.93 is ₹8000.
2. Purchase of Furniture During the Year
Furniture purchase during the year is ₹4000. This amount needs to be added to the initial value of furniture.
Net Value of Furniture = Initial Value + Purchase during the year
Net Value of Furniture = ₹8000 + ₹4000 = ₹12000
3. Sale of Furniture
Sale of furniture on no loss no profit basis is ₹2000. This amount needs to be deducted from the net value of furniture.
Net Value of Furniture after Sale = Net Value of Furniture - Sale of Furniture
Net Value of Furniture after Sale = ₹12000 - ₹2000 = ₹10000
4. Value of Furniture at the End of the Year
The furniture is valued at ₹7000 on 31.12.93. This value needs to be compared with the net value of furniture after sale to calculate the depreciation.
Depreciation for Furniture = Net Value of Furniture after Sale - Value of Furniture at the End of the Year
Depreciation for Furniture = ₹10000 - ₹7000 = ₹3000
Therefore, the depreciation for furniture in 1993 is ₹3000.
Conclusion
Depreciation for an asset is the reduction in its value due to wear and tear, obsolescence, or other factors. It is important to calculate depreciation accurately to determine the actual value of assets and to make informed financial decisions.
Community Answer
Value of furniture on 1.1.93 is 8000, furniture purchase during the ye...
Opening balance of furniture =₹8000
Furniture sold =(₹2000)
Purchase new furniture. =₹4000
Furniture left. =₹10000
Closing balance. =(₹7000)
Depreciation charged. =₹3000
Furniture sold =(₹2000)
Purchase new furniture. =₹4000
Furniture left. =₹10000
Closing balance. =(₹7000)
Depreciation charged. =₹3000
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Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ?
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Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ?.
Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Value of furniture on 1.1.93 is 8000, furniture purchase during the year is 4000, sale of furniture no loss no profit basis is 2000, and the furniture is valued at 7000 on 31.12.93, the depreciation for the year 1993 will be?? Answer with explanation ?.
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