Page 138 - DCOM101_FINANCIAL_ACCOUNTING_I

Financial Accounting-I

Notes Depreciation for the third furniture

31 March, 2004 Depreciation A/c Dr 1,800
st
To Furniture A/c 1,800
Being the depreciation charged for the third furniture
In the next step, the furniture account to be prepared for every year is given.

Furniture A/c (2000-01)
Date Particulars Amount ` Date Particulars Amount `
1 April, 2000 To Bank 2,20,000 31 Mar, 2001 By Depreciation 20,000
By Balance c/d 2,00,000
2,20,000 2,20,000
31st Mar,2001 To Balance B/d 2,00,000 2,20,000

Furniture A/c(2001-02)
Date Particulars Amount ` Date Particulars Amount `
1 April, 2001 To Balance B/d 2,00,000 31 Mar, 2002 By Depreciation 20,000
1 Oct, 2001 To Bank 16,800 By Depreciation 800
st
By Balance c/d 1,96,000
2,16,800 2,16,800
st
31 Mar, 2002 To Balance B/d 1,96,000
Furniture (2002-03)

Date Particulars Amount ` Date Particulars Amount `
st
1 April, 2002 To Balance B/d 1,96,000 31 Mar, 2003 By Depreciation 20,000
st
St
1 April, 2002 To Bank 19,000 By Depreciation 1,600
By Depreciation 1,800
By Balance c/d 1,91,600
2,15,000 2,15,000
31 Mar, 2003 To Balance B/d 1,91,600
st
Furniture (2003-04)
Date Particulars Amount ` Date Particulars Amount `
st
st
1 April, 2003 To Balance B/d 1,91,600 31 Mar, 2004 By Depreciation 20,000
By Depreciation 1,600
By Depreciation 1,800
By Balance c/d 1,68,200
1,91,600 1,91,600
31 Mar, 2004 To Balance B/d 1,68,200

Task Mr. Ramesh purchased a second hand machine for `24,000 on 1st April, 2006. He
spend `10,000 on its overhaul and installation. Depreciation is written off 10% p.a. on the
original cost. On 30th June, 2008 machine was found to be unsuitable and sold for `19,000.
Prepare the machine account from 2006 to 2008 assuming that accounts are closed on 31st
December, every year.

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