Question

on 1-7 -1980 Rajagopal purchased a second hand car for rupees 18000 and spend rupees 2,000 on its repair on 3-6- 1983 the car was disposed off for a sum of 13600 assuming that the books are closed on December. 31each year and the depreciation is 10 % on diminishing balance calculate the amount chargeable in the profit and loss account for the year 1993

Answer 1

on 1-7-1980 rajagopal purchase a second hand car

Answer 2

THE AMOUNT TO BE CHARGEABLE IN PROFIT AND LOSS IS RS 905

              PARTICULARS                                                   AMOUNT(RS.)

COST OF CAR ON 1/7/1980                                                18000

LESS: DEPRECIATION FOR 6 MONTHS                                900

VALUE OF CAR ON 1/1/1981                                                  17100

LESS: DEPRECIATION FOR THE YEAR 1981                           1710

VALUE OF CAR ON 1/1/1982                                                 15390

LESS: DEPRECIATION FOR THE YEAR 1982                         1539

VALUE OF CAR ON 1/1/1983                                                  13851

LESS: DEPRECIATION FOR 5 MONTHS                                   578

VALUE OF CAR ON 3/6/1983                                                 12695

LESS CARS SOLD FOR                                                            13600

AMOUNT CHARGEABLE IN P&L ACCOUNT                           (905)