Question

From the following balance as at 31st Dec 1994 of a trader prepare a trading and profit & loss account for the year 1994 and balance sheet
salaries Rs5500
Rnet Rs1300
Cash Rs1000
Debtors Rs40000
Trade expenses Rs600
Purchase Rs25000
AdvancesRs2500
Creditors Rs9500
Sales Rs32000
Capital Rs30000
Loans Rs10000

Answer 1

Explanation:

Depreciation at the rate of 10% on cost has charged to profit and loss account and credited to a separate depreciation provision account. On 1-1-90 one machine was sold for Rs.12500 and on 1-1-1-91 a second machine was sold for the Same amount. Another machine with a higher capacity which cost Rs.28000 was purchased on 1st July 1990. The Same rate of depreciation was decided to be charged for the new machine as well.from the above particulars you are required to show: 1. The Asset account 2. The Asset disposal account 3. The depreciation provision account

Answer 2

QUESTION:

From the following balance as at 31st December 1994 of a trader prepare a trading and profit & loss account for the year 1994 and balance sheet

Salaries Rs. 5500

Rnet Rs. 1300

Cash Rs. 1000

Debtors Rs. 40000

Trade expenses Rs. 600

Purchase Rs. 25000

Advances Rs. 2500

Creditors Rs. 9500

Sales Rs. 32000

Capital Rs.30000

Loans Rs. 10000

ANSWER:

Depreciation at the rate of 10% on cost has charged to profit and loss account and credited to a separate depreciation provision account.

On 1-1-90 one machine was sold for Rs. 12500 and on 1-1-1-91 a second machine was sold for the same amount.

Another machine with a higher capacity which cost Rs. 28000 was purchased on 1st July 1990.

The same rate of depreciation was decided to be charged for the new machine as well.

From above particulars you are required to show:

1. The asset account

2. The asset disposal account

3. The depreciation provision account