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CBSE Class 11-commerce Answered

Kushal and Company purchased furniture for Rs.50,000 on October 01, 2013. New furniture was purchased on April 01, 2015 for 30,000. Depreciation is charged at 10% p.a. under Fixed Installation Method on March 31 every year. Show necessary journal entries for the years 2013-2014, 2014-2015 and 2015-2016 if Depreciation Account is not maintained.
Asked by Topperlearning User | 04 Aug, 2016, 01:26: PM
answered-by-expert Expert Answer

 

In the Books of Kushal and Company

 

Journal Entries

Date

Particulars

 

L.F.

Dr.

Rs. 

Cr.

Rs. 

2013

 

 

 

 

 

Oct 1

Furniture A/c

Dr.

 

50,000

 

 

-------To Cash/Bank A/c

 

 

 

50,000

 

(Being furniture purchased)

 

 

 

 

2014

 

 

 

 

 

March 31

Depreciation A/c

Dr.

 

2,500

 

 

-------To Furniture A/c

 

 

 

2,500

 

(Being depreciation provided on furniture for 6 months)

 

 

 

 

March 31

Profit and loss A/c

Dr.

 

2,500

 

 

-------To Depreciation A/c

 

 

 

2,500

 

(Being depreciation transferred to profit and loss account)

 

 

 

 

2015

 

 

 

 

 

Mar 31

Depreciation A/c

Dr

 

5,000

 

 

-------To Furniture A/c

 

 

 

5,000

 

(Being depreciation provided on furniture for whole year)

 

 

 

 

Mar 31

Profit and Loss A/c

Dr.

 

5,000

 

 

-------To Depreciation A/c

 

 

Answered by | 04 Aug, 2016, 03:26: PM
CBSE 11-commerce - Accountancy Part I
Asked by Topperlearning User | 01 Jul, 2016, 03:14: PM
ANSWERED BY EXPERT ANSWERED BY EXPERT