Question

14.
Furniture was purchased in three lots of 3,000, 200 and 1,000 on 1st
January, 2015, 1st July, 2016 and 1st April, 2017 respectively. Prepare Furniture
Account for the three years viz 2015, 2016, 2017 providing depreciation @ 10%
p.a. on the basis of Diminishing Balance Method.​

Answer 1

Explanation:

Working Note:

2015 Dep. 3000×10/100 =300 (full year)

2016 Dep. (i) 2700×10/100 =270 (full year)

(ii) 200×10/100×6÷12 = 10 (6 months)

2017 Dep. (i) 2620×10/100 =262 (full year)

(ii) 1000×10/100×9÷12 =75 (9months)