Page 121 - debkxi

15.16 Double Entry Book Keeping—CBSE XI

Note: Calculation of Profit and Loss on Sale of Machine `
Book value 1st April, 2021 5,000
Depreciation 31st March, 2022 750
Book Value 1st April, 2022 4,250
Depreciation 31st March, 2023 637
Book value 1st April, 2023 3,613
Depreciation up to 30th June, 2023 135
Book value 30th June, 2023 (Date of Sale) 3,478
Less: Sale Proceeds 500
Loss on Sale of Machine 2,978

12. The following balances appear in the books of M/s. Sohan Lal Sons:
`
1st April, 2008 Furniture Account 1,00,000
1st April, 2008 Provision for Depreciation A/c 35,000
On 1st April, 2008 they decided to dispose off some furniture for ` 10,000. This
furniture was purchased on 1st October, 2004 for ` 15,000. You are required to
prepared Furniture A/c, Provision for Depreciation A/c and Furniture Disposal
A/c for the year 2008–2009, assuming that the firm has been charging depreciation
at 10% p.a. on Straight Line Method. (MSE Chandigarh 2015)

Solution:
Dr. FURNITURE ACCOUNT Cr.
Date Particulars ` Date Particulars `
2008 2008
April 1 To Balance b/d 1,00,000 April 1 By Furniture Disposal A/c 15,000
2009
March 31 By Balance c/d 85,000
1,00,000 1,00,000
Dr. PROVISION FOR DEPRECIATION ACCOUNT Cr.
Date Particulars ` Date Particulars `
2008 2008
April 1 To Furniture Disposal A/c 5,250 April 1 By Balance b/d 35,000
` (750 + 1,500 + 1,500 + 1,500) 2009
2009 March 31 By Depreciation A/c 8,500
March 31 To Balance c/d 38,250
43,500 43,500
Dr. FURNITURE DISPOSAL ACCOUNT Cr.
Date Particulars ` Date Particulars `
2008 2008
April 1 To Furniture A/c 15,000 April 1 By Provision for Depreciation A/c 5,250
April 1 To Gain (Profit) on Sale of Furniture A/c 250 April 1 By Bank A/c 10,000
(Profit & Loss A/c)
15,250 15,250