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Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be???
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Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year...
Ans.
New Furniture A/c Dr. 1700
To Cash A/c 500
To Old furniture 1200
Assuming that this transaction took place on 1st jan 2006 depreciation for the whole year will be:
10% on (Rs. 20000-1200+1700) = 2050
Net amount of furniture to be shown in closing B/S will be:
opening bal 20000
less: sold 1200
add: purchased 1700
20500
less: depreciation
on above @ 10% 2050
net closing figure 18450
This question is part of UPSC exam. View all CA Foundation courses
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Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year...
Calculation of Depreciation:
Given:
- Furniture value on 1 Jan 2010: Rs. 20,000
- Depreciation rate: 10% p.a.
To calculate the depreciation, we can use the straight-line method. The formula for straight-line depreciation is:
Depreciation expense = (Initial cost - Salvage value) / Useful life
In this case, the useful life of the furniture is not mentioned. So, let's assume a useful life of 10 years.
Depreciation expense = (20,000 - 0) / 10
Depreciation expense = 2,000 per year
Adjustment for Exchange of Furniture:
Given:
- Book value of furniture on 1 Jan 2010: Rs. 1,200
- Additional payment made: Rs. 500
When a part of the furniture is exchanged with another furniture, we need to adjust the book value accordingly. Since the book value of the furniture is Rs. 1,200 and an additional payment of Rs. 500 is made, the new book value of the furniture will be:
New book value = Book value - Additional payment
New book value = 1,200 - 500
New book value = 700
Net Amount of Furniture to be Shown in Balance Sheet:
To calculate the net amount of furniture to be shown in the balance sheet, we need to subtract the accumulated depreciation from the original cost of furniture.
Net amount of furniture = Original cost - Accumulated depreciation
Given:
- Original cost of furniture: Rs. 20,000
- Accumulated depreciation: Depreciation expense x Number of years
In this case, the number of years is not mentioned. So, let's assume it to be 10 years.
Accumulated depreciation = Depreciation expense x Number of years
Accumulated depreciation = 2,000 x 10
Accumulated depreciation = 20,000
Net amount of furniture = 20,000 - 20,000
Net amount of furniture = 0
Therefore, the net amount of furniture to be shown in the balance sheet will be Rs. 0.
Given:
- Furniture value on 1 Jan 2010: Rs. 20,000
- Depreciation rate: 10% p.a.
To calculate the depreciation, we can use the straight-line method. The formula for straight-line depreciation is:
Depreciation expense = (Initial cost - Salvage value) / Useful life
In this case, the useful life of the furniture is not mentioned. So, let's assume a useful life of 10 years.
Depreciation expense = (20,000 - 0) / 10
Depreciation expense = 2,000 per year
Adjustment for Exchange of Furniture:
Given:
- Book value of furniture on 1 Jan 2010: Rs. 1,200
- Additional payment made: Rs. 500
When a part of the furniture is exchanged with another furniture, we need to adjust the book value accordingly. Since the book value of the furniture is Rs. 1,200 and an additional payment of Rs. 500 is made, the new book value of the furniture will be:
New book value = Book value - Additional payment
New book value = 1,200 - 500
New book value = 700
Net Amount of Furniture to be Shown in Balance Sheet:
To calculate the net amount of furniture to be shown in the balance sheet, we need to subtract the accumulated depreciation from the original cost of furniture.
Net amount of furniture = Original cost - Accumulated depreciation
Given:
- Original cost of furniture: Rs. 20,000
- Accumulated depreciation: Depreciation expense x Number of years
In this case, the number of years is not mentioned. So, let's assume it to be 10 years.
Accumulated depreciation = Depreciation expense x Number of years
Accumulated depreciation = 2,000 x 10
Accumulated depreciation = 20,000
Net amount of furniture = 20,000 - 20,000
Net amount of furniture = 0
Therefore, the net amount of furniture to be shown in the balance sheet will be Rs. 0.
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Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be???
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Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be??? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be??? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be???.
Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be??? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be??? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be???.
Solutions for Books of Ekta,shows on 1 jan. 2010 furniture rs. 20000.during the year a part of the furniture whose book value on 1 jan 2010 is rs. 1200 has been exchanged with another furniture by paying additional rs. 500.ekta charge depreciation @10% p.a.the net amount of furniture to be shown in the balance sheet will be??? in English & in Hindi are available as part of our courses for CA Foundation.
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