Delhi Youth Club has furniture at a value of Rs. 2,20,000 in its book on 31st March . 2018 . It sold old furniture having book value of Rs. 20,000 as at 1st April 2018 at a loss of 20% on 31st December 2018. Furniture is to be depreciated `"@"10%` p.a.Furniture costing Rs. 1,50,000 was also purchased on 1st Octobe 2018. Prepare Furniture Account for the year ended 31st March ,2019.

Answer

Amount realised from sale of Furniture =Rs20,000 -Rs 1,500(Depreciation) =20% of Rs 18,500 =Rs 14,800; Loss on sale of Furniture -Rs 3,700; Depreciation -Rs 1,500 (on Furniture sold) Rs 20,000(on Rs 2,00,000 for 1 year) and Rs 7,500 (on Rs 1,50,000 for `1/2` year).

Explanation

N/a