Question

Mr Nirmal,a sole trader, bought a building for ₹100000 on 1/1/2009. Further,he constructed another building which was completed on 1/1/2010.He spent ₹200000 for this.Depreciation was charged at the end of every year on 31st December on the diminishing balance method@10percent. Draw the building account till 2012

Answer 1

The amount for depreciation is 30000
Thus the Amount entered must be 300000-30000=270000
Building Ac Dr.
to cash ac
(Being building Constructed)