1.

On 1st April, 2013, a merchant purchased a furniture costing Rs. 55,000. It is estimated that its life is 10 years at the end of which it will be sold for Rs. 5,000. Additions are made on 1st April, 2014 and 1st April, 2016 to the value of Rs. 9,500 and Rs. 8,800 (Residual values Rs.500 and Rs. 400 respectively). Show the furniture account for the first four years, if depreciation is written off according to the straight line method, and the merchant closes his books on 31st March, every year, assuming that the additions made to the furniture are an integral part of the furniture and will lose their utility with the expiration of the useful life of the original furniture.

Answer»

On 1st April, 2013, a merchant purchased a furniture costing Rs. 55,000. It is estimated that its life is 10 years at the end of which it will be sold for Rs. 5,000. Additions are made on 1st April, 2014 and 1st April, 2016 to the value of Rs. 9,500 and Rs. 8,800 (Residual values Rs.500 and Rs. 400 respectively). Show the furniture account for the first four years, if depreciation is written off according to the straight line method, and the merchant closes his books on 31st March, every year, assuming that the additions made to the furniture are an integral part of the furniture and will lose their utility with the expiration of the useful life of the original furniture.



Discussion

No Comment Found

Related InterviewSolutions