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(i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.?
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(i) Depreciate: (a) Building used for business by 5 percent; (b) Furni...
Depreciation and Value of Stock at the Close of the Year
Depreciation:
(a) Building used for business by 5 percent
(b) Furniture and fixtures by 10 percent
(c) Office equipment by 15 percent
(d) Motor car by 20 percent
Explanation:
Depreciation is a non-cash expense that reflects the wear and tear of assets used in a business. The depreciation rates mentioned in the question are the percentages by which the value of the assets will decrease during the year.
(a) Building used for business by 5 percent:
If the value of the building used for business is Rs. 10,00,000, the depreciation amount will be Rs. 50,000 (5% of Rs. 10,00,000).
(b) Furniture and fixtures by 10 percent:
If the value of the furniture and fixtures is Rs. 5,00,000, the depreciation amount will be Rs. 50,000 (10% of Rs. 5,00,000).
(c) Office equipment by 15 percent:
If the value of the office equipment is Rs. 2,00,000, the depreciation amount will be Rs. 30,000 (15% of Rs. 2,00,000).
(d) Motor car by 20 percent:
If the value of the motor car is Rs. 8,00,000, the depreciation amount will be Rs. 1,60,000 (20% of Rs. 8,00,000).
One steel table purchased during the year for 14,000 was sold for the same price, but the sale proceeds were wrongly credited to the Sales Account:
The sale of the steel table should have been credited to the Sales Account, but it was wrongly credited. Therefore, the Sales Account will be overstated by Rs. 14,000.
Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase:
The purchase of the typewriter should have been debited to the Office Equipment Account, but it was wrongly debited to the Purchase Account. Therefore, the Purchase Account will be overstated by Rs. 40,000.
Value of stock at the close of the year was Rs.4,40,000:
The value of stock at the close of the year is the amount of inventory that a business has on hand at the end of the accounting period. In this case, the value of the stock at the close of the year is Rs. 4,40,000. This means that the business has Rs. 4,40,000 worth of inventory that has not been sold or used in the production process.
In conclusion, the depreciation rates mentioned in the question and the correction of the accounting errors will have an impact on the financial statements of the business. The value of the stock at the close of the year indicates that the business has a significant amount of inventory on hand, which may affect its liquidity and profitability.
Depreciation:
(a) Building used for business by 5 percent
(b) Furniture and fixtures by 10 percent
(c) Office equipment by 15 percent
(d) Motor car by 20 percent
Explanation:
Depreciation is a non-cash expense that reflects the wear and tear of assets used in a business. The depreciation rates mentioned in the question are the percentages by which the value of the assets will decrease during the year.
(a) Building used for business by 5 percent:
If the value of the building used for business is Rs. 10,00,000, the depreciation amount will be Rs. 50,000 (5% of Rs. 10,00,000).
(b) Furniture and fixtures by 10 percent:
If the value of the furniture and fixtures is Rs. 5,00,000, the depreciation amount will be Rs. 50,000 (10% of Rs. 5,00,000).
(c) Office equipment by 15 percent:
If the value of the office equipment is Rs. 2,00,000, the depreciation amount will be Rs. 30,000 (15% of Rs. 2,00,000).
(d) Motor car by 20 percent:
If the value of the motor car is Rs. 8,00,000, the depreciation amount will be Rs. 1,60,000 (20% of Rs. 8,00,000).
One steel table purchased during the year for 14,000 was sold for the same price, but the sale proceeds were wrongly credited to the Sales Account:
The sale of the steel table should have been credited to the Sales Account, but it was wrongly credited. Therefore, the Sales Account will be overstated by Rs. 14,000.
Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase:
The purchase of the typewriter should have been debited to the Office Equipment Account, but it was wrongly debited to the Purchase Account. Therefore, the Purchase Account will be overstated by Rs. 40,000.
Value of stock at the close of the year was Rs.4,40,000:
The value of stock at the close of the year is the amount of inventory that a business has on hand at the end of the accounting period. In this case, the value of the stock at the close of the year is Rs. 4,40,000. This means that the business has Rs. 4,40,000 worth of inventory that has not been sold or used in the production process.
In conclusion, the depreciation rates mentioned in the question and the correction of the accounting errors will have an impact on the financial statements of the business. The value of the stock at the close of the year indicates that the business has a significant amount of inventory on hand, which may affect its liquidity and profitability.
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(i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.?
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(i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? 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 (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.?.
(i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? 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 (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.?.
Solutions for (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? in English & in Hindi are available as part of our courses for CA Foundation.
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(i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.?, a detailed solution for (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? has been provided alongside types of (i) Depreciate: (a) Building used for business by 5 percent; (b) Furniture and fixtures by 10 percent; One steel table purchased during the year for 14,000 was sold for same price but the sale proceeds were wrongly credited to Sales Account; (c) Office equipment by 15 percent; Purchase of a typewriter during the year for 40,000 has been wrongly debited to purchase; and (d) Motor car by 20%. (ii) Value of stock at the close of the year was Rs.4,40,000.? theory, EduRev gives you an
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