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Working Note Calcualation of Depreciation (SLM) & Profit or Loss On Sale of Furniture

This document contains calculations related to depreciation and profit/loss on the sale of furniture for Azar Ltd. It summarizes the cost of two pieces of furniture purchased in different years, the annual depreciation calculated using the straight line method, the written down values each year, and the eventual sale of Furniture 1 which resulted in a loss of Rs. 106875. Furniture was fully depreciated over 3 years for Furniture 1 and 2 years for Furniture 2. The depreciation expense each year was recorded in the Depreciation account and transferred to the Profit and Loss account.

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Harendra Prajapati
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37 views2 pages

Working Note Calcualation of Depreciation (SLM) & Profit or Loss On Sale of Furniture

This document contains calculations related to depreciation and profit/loss on the sale of furniture for Azar Ltd. It summarizes the cost of two pieces of furniture purchased in different years, the annual depreciation calculated using the straight line method, the written down values each year, and the eventual sale of Furniture 1 which resulted in a loss of Rs. 106875. Furniture was fully depreciated over 3 years for Furniture 1 and 2 years for Furniture 2. The depreciation expense each year was recorded in the Depreciation account and transferred to the Profit and Loss account.

Uploaded by

Harendra Prajapati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Illustration No.

 Working Note
 Calcualation of Depreciation ( SLM) & Profit Or Loss On Sale Of Furniture

Particulars Furniture 1 Furniture 2 Total


(1.10.2014) (1.03.2015) depreciation
1st April 2014 To 31st March 2015 (1st Year) 450000 300000
(-) Depreciation (33750) (6M) (3750) (1M) 37500
1St April 2015 ( Wdv) ( 2nd Year) 416250 296250
31st March 2016 (-) Denpn ( 67500) (1Yr) (45000) (1Yr) 112500
1st April 2016 (Wdv) Book Value 348750 251250
(-) Dep 31st March 2017 ( 3rd Year) (16875) (3M) (45000) 61875
Book Value 331875 206250
(-) Selling Price (225000)
Loss On Sale Of Furniture 1 106875

In the Books Of Azar Ltd.


Furniture A/c
Dr Cr

Date Particulars j Amt Date Particulars j Amt


/ /
f f
14-15 14-15
1st Oct14 To Bank A/c - 450000 31st mar15 By Depreciation A/c - 37500
1st To Bank A/c 300000 31st mar15 By Balance C/d 712500
Mar15 ( Bal. Fig.)
750000 750000
15-16 15-16
1st Apr15 To Balance B/d - 712500 31st mar16 By Depreciation A/c - 112500
31st mar16 By Balance C/d 600000
( Bal. Fig.)
712500 712500
16-17 16-17
1st Apr16 To Balance B/d - 600000 1st Jul16 By Bank A/c - 225000
By Profit & Loss A/c - 106875
( Loss)
31stMar17 By Depreciation A/c - 61875
31stMar17 By Balance C/d - 206250
(Bal. Fig.)
600000 600000
17-18
1st Apr17 To Balance B/d - 206250
Depreciation A/c
Dr Cr

Date Particulars j Amt Date Particulars j Amt


/ /
f f
31stMar15 To Furniture A/c - 37500 31st Mar 15 By P & L A/c - 37500
37500 37500

31stMar15 To Furniture A/c - 112500 31st Mar 15 By P & L A/c - 112500


112500 112500

31stMar15 To Furniture A/c - 61875 31st Mar 15 By P & L A/c - 61875


61875 61875

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