Question

AB & Co. and CD & Co. amalgamated with effect from 1-4-2013
AB & Co. had the following account balances on that date
Land & Building
2.80.000
Stock
3.00.000
Debtors
2.00.000
Cash & Bank
1.20.000
Investments
3,00.000
Creditors
7.50.000
(0) All the assets and all the liabilities shall be taken over by the new firm
(2) Land and Building shall be appreciated by 20%.
(3) Stock shall be increased by 50,000.
14) Debtors shall be decreased by 10,000.
(5) Goodwill shall be valued at 1,00,000.
(6) investment shall be taken over at 2,80,000.​

Answer 1

Answer:

hey mate here is your answer...

Explanation:

Balance in 'Provision for depreciation Account" as on 31.03.2015:-

= depreciation on unsold machinery + Depreciation on new machinery

= RS- 3,36,000 + RS-4,000

RS-3,40,000.

Working notes:-

1) Depreciation on existing machinery from 1.4.2012 to 31.03.2015 (3 years):-

= (12,00,000 - 80,000) 11,20,000 x 10/100 x 3 years

= RS-3,36,000

2) Depreciation on new machinery from 1.10.2014 to 31.03.2015 (6months)

= 80,000 x 10/100 x 6/12

= RS-4,000.