On 1 st April, 2012 in Sethi's Ledger, furniture account showed a balance of ₹2,00,000. On 1 st October, 2012 Sethi purchased new furniture by paying ₹5,000 and giving old furniture whose book value on 1 st April, 2012 w
CS CSEET · Business Economics & Fundamentals of Accounting and Auditing · PYQS · June 2013
On 1 st April, 2012 in Sethi's Ledger, furniture account showed a balance of ₹2,00,000. On 1 st October, 2012 Sethi purchased new furniture by paying ₹5,000 and giving old furniture whose book value on 1 st April, 2012 was ₹12,000 to the seller. Sethi provides depreciation on furniture @10% per annum on diminishing balance method. The net value of furniture in Sethi's books as on 31 st March, 2013 would be —
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) ₹1,84,780. Retained old furniture: 1,88,000×90% = 1,69,200. New furniture cost: 12,000×95% + 5,000 = 16,400, less half-year depreciation 820. Total = 1,84,780.
Topics: Fundamentals of Accounting
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