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Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will be
  • a)
    Rs 18,508
  • b)
    Rs 20,440
  • c)
    Rs 18,396
  • d)
    Rs 18,478
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During ...
Solution:

Calculation of Depreciation:

Depreciation for the year = 10% of Rs. 20,000 = Rs. 2,000

Calculation of Adjusted Book Value:

Book value of furniture on 1st January 2010 = Rs. 20,000 - Rs. 2,000 = Rs. 18,000

Book value of exchanged furniture = Rs. 1,200 - (10% of Rs. 1,200) = Rs. 1,080

Cost of new furniture = Rs. 1,080 + Rs. 500 = Rs. 1,580

Adjusted book value of furniture = Rs. 18,000 - Rs. 1,080 + Rs. 1,580 = Rs. 18,500

Final Answer:

The net amount of the furniture to be shown in the balance sheet will be Rs. 18,478.
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Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During ...
For purchase of new asset the entry would be (Para 11, AS 10)   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 18450
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Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer?
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Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? 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 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? 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 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer?.
Solutions for Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer?, a detailed solution for Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Books of Ekta, shows on 1st January 2010 furniture Rs. 20,000. During the year a part of the furniture whose book value on 1st January 2010 is Rs. 1,200 has been exchanged with another furniture by paying additional Rs. 500. Ekta charge depreciation @ 10% p.a. The net amount of the furniture to be shown in the balance sheet will bea)Rs 18,508b)Rs 20,440c)Rs 18,396d)Rs 18,478Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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