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On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st July 2016, furniture was sold for 15000. Prepare furniture account assuming depreciation was charged at 10% per year on original cost method and account were closed on 31st March every year?
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On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st...
Furniture Account Preparation
To prepare the Furniture Account for Kumar and Sons, we will calculate the depreciation annually and record the sale of the furniture.
Initial Purchase Details
- Date of Purchase: 1st April 2013
- Cost of Furniture: ₹30,000
Depreciation Calculation
- Depreciation Rate: 10% per year on original cost
- Annual Depreciation: ₹30,000 x 10% = ₹3,000
Depreciation for Each Year
- 2013-14: ₹3,000
- 2014-15: ₹3,000
- 2015-16: ₹3,000
- 2016-17: Not applicable as it was sold on 1st July 2016
Total Depreciation Before Sale
- Total Depreciation Over 3 Years:
- ₹3,000 (2013-14)
- ₹3,000 (2014-15)
- ₹3,000 (2015-16)
- Cumulative Depreciation: ₹9,000
Book Value at Sale
- Book Value on Sale Date:
- Original Cost: ₹30,000
- Less: Cumulative Depreciation: ₹9,000
- Book Value: ₹30,000 - ₹9,000 = ₹21,000
Sale of Furniture
- Date of Sale: 1st July 2016
- Sale Price: ₹15,000
Furniture Account Summary
- Debit Side:
- Purchase of Furniture: ₹30,000
- Credit Side:
- Depreciation (3 Years): ₹9,000
- Sale of Furniture: ₹15,000
In conclusion, the Furniture Account reflects the initial purchase, annual depreciation, and final sale, providing an overview of the financial impact of the furniture over its lifespan.
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On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st July 2016, furniture was sold for 15000. Prepare furniture account assuming depreciation was charged at 10% per year on original cost method and account were closed on 31st March every year?
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On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st July 2016, furniture was sold for 15000. Prepare furniture account assuming depreciation was charged at 10% per year on original cost method and account were closed on 31st March every year? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st July 2016, furniture was sold for 15000. Prepare furniture account assuming depreciation was charged at 10% per year on original cost method and account were closed on 31st March every year? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st April 2013, kumar and sons bought a furniture for 30000. On 1st July 2016, furniture was sold for 15000. Prepare furniture account assuming depreciation was charged at 10% per year on original cost method and account were closed on 31st March every year?.
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