Glass, Cutlery etc.: Balance on 01.01.2004 is...
Glass, Cutlery etc.: Balance on 01.01.2004 is Rs. 28,000. Glass, Cutlery, etc. purchased during the year Rs. 16,000. Depreciation is to be charged on the above assets as follows- 1/5th of their values is to be written off in the year of purchase and 2/5th in each of the next 2 years. Of the stock of Glass, Cutlery, etc. as on 01.01.2004, ½ was one year old and ½ was 2 years old. Purchases are made on 1st January. Closing Balance in Glass, Cutlery A/c = _________.
• a)
Rs. 18,000
• b)
Rs. 18,500
• c)
Rs. 19,800
• d)
Rs. 20,400

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 Chandan Sethi Jun 15, 2018
Related Glass, Cutlery etc.: Balance on 01.01.2004 is Rs. 28,000. Glass, Cutlery, etc. purchased during the year Rs. 16,000. Depreciation is to be charged on the above assets as follows- 1/5th of their values is to be written off in the year of purchase and 2/5th in each of the next 2 years. Of the stock of Glass, Cutlery, etc. as on 01.01.2004, ½ was one year old and ½ was 2 years old. Purchases are made on 1st January.Closing Balance in Glass, Cutlery A/c = _________.a)Rs. 18,000b)Rs. 18,500c)Rs. 19,800d)Rs. 20,400Correct answer is option 'C'. Can you explain this answer?
On newly purchased glass & cutlery (machinery) 16000-3200=12800(balance) tricky question start now half of the machinery (14000) was to be completely written off because of its life completed and for the next half (14000) let cost be x from which 1/5 is written off & the remaining (14000) is 4/5 part of x (cost) then the cost = 17500 now written off 3/5 from the cost (1/5 + 2/5 ) the written off value is 10500 the remaining value is 17500-10500= 7000 now add 7000+12800 =19800

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