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Chapter - 13

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Tenukhang limbu
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30 views

Chapter - 13

Uploaded by

Tenukhang limbu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Chapter – 13 Accounting for fixed assets

Straight line, fixed installment, original cost method


Q.no 1 A company purchased a machinery at Rs 5,00,000 on 1 st January 2019. The company
purchased another machinery at Rs.4,00,000 on 1st July 2020. On 30th june 2021 The company
sold the machinery which was purchased on 1st January 2019 at Rs.3,60,000 and same day
purchased another machinery at Rs. 3,00,000. The company charged depreciation @10% p.a
under straight line method. The accounts are closed on 31st December each year.
Required: machinery account for three years.
Q.no 2
On 1st January 2016 a company purchased a furniture at Rs 2,00,000 . on 1st july 2016 The
company purchased another furniture at Rs.1,00,000. On 31 st December 2017 the company
sold the furniture which was purchased on 1st January 2016 at Rs.1,70,000 and same day
purchased another furniture at Rs. 4,00,000. The company charged depreciation @10% p.a
under straight line method. The accounts are closed on 31st December each year.
Required: furniture account for three years.
Q.no 3
On 1st kartik 2076 a company purchased a furniture at Rs 5,80,000 and paid transportation
charge of Rs. 20,000. on 1st Baishakh 2077 The company purchased another furniture at
Rs.4,00,000. On 1st sharawan 2078 the company sold the furniture which was purchased on 1 st
Kartik 2076 at Rs. 4,00,000 and same day purchased another furniture at Rs. 3,00,000. The
company charged depreciation @15% p.a under fixed installment method. The accounts are
closed on 31st chaitra each year.
Required: furniture account for three years.
Q.no 4
On 1st Baishakh 2077a company purchased a machinery at Rs 2,80,000 and paid installment
charge of Rs. 20,000. on 1st Magh 2078 The company purchased another machinery at Rs.
2,00,000. On 1st Baishakh 2079 the company sold the machinery which was purchased on 1 st
Baishakh 2077at Rs. 2,50,000 and same day purchased another machinery at Rs. 1,00,000. The
company charged depreciation @10 % p.a under original cost method. The accounts are closed
on 31st chaitra each year.
Required: machinery account for three years.
Diminishing balance, Reducing balance, written down value method
Q.no 1 A company purchased a machinery at Rs 5,00,000 on 1 st January 2019. The company
purchased another machinery at Rs.4,00,000 on 1st July 2020. On 30th june 2021 The company
sold the machinery which was purchased on 1st January 2019 at Rs.3,60,000 and same day
purchased another machinery at Rs. 3,00,000. The company charged depreciation @10% p.a
under Diminishing balance method. The accounts are closed on 31st December each year.
Required: machinery account for three years.
Q.no 2
On 1st January 2016 a company purchased a furniture at Rs 2,00,000 . on 1st july 2016 The
company purchased another furniture at Rs.1,00,000. On 31 st December 2017 the company
sold the furniture which was purchased on 1st January 2016 at Rs.1,70,000 and same day
purchased another furniture at Rs. 4,00,000. The company charged depreciation @10% p.a
under Reducing balance method. The accounts are closed on 31st December each year.
Required: furniture account for three years.
Q.no 3
On 1st kartik 2076 a company purchased a furniture at Rs 5,80,000 and paid transportation
charge of Rs. 20,000. on 1st Baishakh 2077 The company purchased another furniture at
Rs.4,00,000. On 1st sharawan 2078 the company sold the furniture which was purchased on 1 st
Kartik 2076 at Rs. 4,00,000 and same day purchased another furniture at Rs. 3,00,000. The
company charged depreciation @15% p.a under written down value method. The accounts are
closed on 31st chaitra each year.
Required: furniture account for three years.
Q.no 4
On 1st Baishakh 2077a company purchased a machinery at Rs 2,80,000 and paid installment
charge of Rs. 20,000. on 1st Magh 2078 The company purchased another machinery at Rs.
2,00,000. On 1st Baishakh 2079 the company sold the machinery which was purchased on 1 st
Baishakh 2077at Rs. 2,50,000 and same day purchased another machinery at Rs. 1,00,000. The
company charged depreciation @10 % p.a under written down value method. The accounts are
closed on 31st chaitra each year.
Required: machinery account for three years.
Final account under Traditional approach
1. Following trial balance of XYZ company is provided to you
Dr. Cr.
particulars Amount Particulars Amount

Wages 10,000 Capital 1,38,000


Opening stock 20,000 Sales 3,00,000
Purchase 2,00,000 Return outwards 10,000
Salary 50,000 10%Bank loan 50,000
Rent 10,000 Commission 6,000
Furniture 1,00,000 Interest on investment 4,000
Debtors 50,000
Carriage inwards 5,000
Advertisement 3,000
Insurance 2,000
Return inwards 15,000
Interest on loan 3,000
Investment 40,000

5,08,000 5,08,000
Additional informations:
1. Closing stock is valued Rs. 30,000
2. Wages outstanding Rs. 5,000
3. Depreciation on furniture @10% p.a.
4. Interest on loan is outstanding Rs 2,000
5. Bad debt written off Rs. 5,000
Required:
a. Trading account
b. Profit and loss a/c
2. Following trial balance of XYZ company as on 31st December 2019 is given below:
Dr. Cr.
particulars Amount Particulars Amount
Beginning stock 50,000 Capital 4,00,000
Purchases 6,50,000 General reserve 60,000
Building 3,00,000 Creditors 90,000
Machinery 50,000 Sales 8,00,000
Investment 2,00,000 Commission 50,000
Carriage 30,000 Bank loan 1,00,000
Salaries 50,000
Debtors 1,00,000
Cash at bank 20,000
Wages 40,000
Audit fees 10,000
Total 15,00,000 Total 15,00,000

Additional information:
a. Provide depreciation on building by 10% p.a
b. Bad debt written off Rs. 5,000.
c. Stock at the end Rs. 60,000
d. Salary prepaid Rs. 10,000
e. Wages outstanding Rs. 5,000
f. Commission received in advance Rs. 5,000.
Required : Trading, Profit and loss a/c and Balance sheet
3. Following trial balance of R & R company as on 31st December 2020 is given below:
Dr. Cr.
particulars Amount Particulars Amount
Machinery 3,00,000 Capital 5,00,000
Land and building 4,25,000 Rent received 40,000
Opening stock 30,000 Bank overdraft 98,000
Cash balance 20,000 Creditors 54,000
Purchases 3,50,000 Sales revenue 7,70,000
Debtors 41,000 Advance/unearned commission 10,000
Manufacturing expenses 90,000 Purchase return 2,000
Salaries 80,000
House rent 35,000
Insurance 7,000
Legal fees 24,000
Direct expenses 15,000
Advertisement 7,000
Travelling expenses 50,000
Total 14,74,000 Total 14,74,000

Additional information:
a. Provide bad debts Rs 1,000 and creat provision for bad debt 10 % on debtor.
b. Advance commission earned Rs. 4,000.
c. Appreciate land by 10%.
d. Salary to be paid Rs. 10,000.
e. Prepaid advertisement Rs. 2,000
f. Closing stock Rs. 30,000
Required : Trading, profit and loss a/c and Balance sheet

4. Following trial balance of B & B company as on 31st December 2022 is given below:
Dr. Cr.
particulars Amount Particulars Amount
Opening stock 20,000 Capital 4,00,000
Purchased 3,20,000 Sales 4,50,000
Wages 70,000 Purchase return 10,000
Legal expenses 50,000 Discount and commission 4,000
Discount 3,000 Bills payable 20,000
Sundry debtors / book debt 25,000 10 % bank loan 50,000
Machinery 1,75,000 Provision for doubtful debt 1,000
Land and building 2,00,000 Reserve fund 25,000
Good will 75,000 Creditor 50,000
Investment 45,000 Commission received 20,000
Audit fees 5,000 Dividend received 30,000
Cash at bank 30,000
Carriage outwards 7,000
Sundry expenses 15,000
Patent 15,000
Prepaid salary 5,000
Total 10,60,00 Total 10,60,000
0
Additional information:
a. Stock at end Rs. 25,000
b. Wages outstanding Rs. 10,000.
c. Commission includes 5,000 advance.
d. Depreciation on machinery Rs. 25,000 and appreciate land by 10,000.
e. Whole year of debenture interest is outstanding.
f. Bad debt written off Rs. 5,000.
g. Prepaid salary expired Rs. 3,000
Required : Trading, p/l a/c and Balance sheet

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