Question

Q2) Padmavat trading company, Delhi purchased furniture on lat April 2002 for
Rs 25000. In the same year additional furniture was purchased for Rs 10,000 on 1
October 2002.On 16 October 2003, the furniture purchased on 1st April, 2002 was
sold for Rs 15,000 and on the same date new furniture was purchased for Rs
12,000. The company charge depreciation @ 8%p.a on Diminishing Balance Method
Prepare Furniture Account and Depreciation A\c for 3 years i.e 2002-03, 2003-04,
and 2004-05, assuming that the accounting year of the company closes on 31 March
every year.

Answer 1

Answer:

Padmavat trading company, Delhi purchased furniture on lat April 2002 for

Rs 25000. In the same year additional furniture was purchased for Rs 10,000 on 1

October 2002.On 16 October 2003, the furniture purchased on 1st April, 2002 was

sold for Rs 15,000 and on the same date new furniture was purchased for Rs

12,000. The company charge depreciation @ 8%p.a on Diminishing Balance Method

Prepare Furniture Account and Depreciation A\c for 3 years i.e 2002-03, 2003-04,

and 2004-05, assuming that the accounting year of the company closes on 31 March