Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2018.
Furniture Account
| Date | Particulars | Amount (Rs.) | Date | Particulars | Amount (Rs.) |
| 2018 | 2018 | ||||
| April 01 | Balance b/d | Dec. 31 | Depreciation (ii) (for 9 Months) | 1,500 | |
| (i) 2,00,000 | Dec. 31 | Bank (Sale (ii)) | 14,800 | ||
| (ii) 20,000 | 2,20,000 | Dec. 31 | Income and Expenditure (Loss on Sale) | 3,700 | |
| Oct. 01 | Bank (iii) | 1,50,000 | 2019 | ||
| Mar. 31 | Depreciation | ||||
| (i) 20,000 | |||||
| (iii) 7,500 (for 6 Months) | 27,500 | ||||
| Mar. 31 | Balance c/d | ||||
| (i) 1,80,000 | |||||
| (iii) 1,42,500 | 3,22,500 | ||||
| 3,70,000 | 3,70,000 |
Working Note:
Calculation of Profit or Loss on Sale of Furniture
| Particulars | Amount (Rs.) |
| Book Value of Furniture (i) as on April 01, 2018 | 20,000 |
| Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12] | (1,500) |
| Book Value on December 31, 2018 | 18,500 |
| Less: Loss on Sale of Furniture (18,500 × 20%) | (3,700) |
| Sale Value of Furniture | 14,800 |