Question

raghav and sons purchased a car for 100000 on 1st jan 2012. the car was depreciated at 10%. under w.d.v method to straight line method with out changing rate. show the asset account from 2012- 2015

Answer 1

As it is not mentioned about the ending of financial year, so it is assumed that the financial year ends on 31 December every year.

Straight Line Method :
Depreciation for every Year = (100000 × 10)/100 = Rs. 10000

Dr. Asset A/c Cr.
1 Jan 2012 31 Dec. 2012

To Bank A/c 100000 By Depreciation A/c 10000
By Balance c/d 90000

_________ ________
100000 100000
_________ ________

1 Jan. 2013 31 Dec. 2013

To Balance b/d 90000 By Depreciation A/c 10000
By Balance c/d 80000

__________ ________
90000 90000
__________ ________

1 Jan. 2014 31 Dec. 2014

To Balance b/d 80000 By Depreciation A/c 10000 By Balance c/d 70000
_______ _______
80000 80000
_______ _______

1 Jan. 2015 31 Dec. 2015

To Balance b/d 70000 By Depreciation A/c 10000
By Balance c/d 60000

_______ _______
70000 70000
_______ _______


Written Down Value Method :-

Dr. Asset A/c Cr.

1 Jan. 2012 31 Dec. 2012

To Bank A/c 100000 By Depreciation A/c 10000
By Balance c/d 90000

_______ _______
100000 100000
_______ _______
1 Jan. 2013 31 Dec. 2013

To Balance b/d 90000 By Depreciation A/c 9000
By Balance c/d 81000

_______ _______
90000 90000
_______ _______
1 Jan. 2014

hope this helps