Question

A company purchased some furniture costing * 20,000 on 1st April 2000. They
decided to write off depreciation 10% per annum on the diminishing balance
method. On 30th September 2001, purchased further furniture items worth
10,000. On 1st July 2002 some furniture items purchased in 1st April 2000,
which originally cost * 2,000 was sold for 1,500.
Show the Furniture A/c for 3 years.

Answer 1

Answer:

Explanation:

Opening balance.

1

5.0

= 20000

Less depreciation =(2000)

20000*10% Closing wdv on 31/12/2020 = 18000