The Book Value of Furniture on 1st April, 2018 is ₹ 60,000. Half of this Furniture Is Sold for ₹ 20,000 On 30th September, 2018

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The book value of furniture on 1st April, 2018 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.

Calculate loss on sale of furniture. Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2019.





Furniture Account


DateParticularsAmount(Rs.)
DateParticulars
Amount(Rs.)
2018  2018  
April 01Balance b/d Sept.30Depreciation (i) (for 6 Months)1.500
 (i) 30,000 Sept.30Bank (Sale) (i)20,000
 (ii) 30,00060,000Sept.30Income and Expenditure (Loss on Sale)8,500
   2019  
   March 31Depreciation (ii) (for whole year)3,000
    Balance c/d (ii) (30,000 – 3,000)27,000
  60,000  60,000




Income and Expenditure Account 
for the year ended March 31, 2019

Expenditure Amount(Rs.)Income Amount(Rs.)
Depreciation on Furniture   
(1,500 + 3,000)4,500  
Loss on Sale of Furniture8,500  



Working Note:

Calculation of Profit or Loss on Sale of Furniture


ParticularsAmount(Rs.)
Book Value of Furniture Sold as on April 01, 201830,000
Less: Depreciation (for 6 Months) (3,000 × 10% × 6/12)1,500
Book Value of Furniture as on Sept. 30, 201828,500
Less: Sale Value20,000
Loss on Sale of Furniture8,500



Chapter-1 Financial Statements of Not for Profit Organisations-TS Grewal



Location: India

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