Couldn't understand Logic.

Furniture sold at beginning of year for 8000. Book value sold is 14000. So balance book value is 14000. On that 10%.

CA Suraj Lakhotia

Admin

14-Oct-20 09:07

1)Balance book value is given after deducting depreciation and loss at sale right, I mean 14,000(Value at the end of year) is the value after deducting depreciation and loss at sale right. 2)I mean the furniture a/c(Ledger) also doesn't Tally.

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 11:02

And what impact does the dates have like Purchased and put to use at the last date of the year, Sold at the beginning of the year...

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 11:14

So if sold at beginning of year - no depreciation. Depreciation not yet provided.

CA Suraj Lakhotia

Admin

14-Oct-20 12:11

Thank You Sir, and what about purchased and put to use on the last day of the year.

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 12:35

Why Furniture a/c didn't tally?

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 12:38

The balance given in question is before depreciation.

CA Suraj Lakhotia

Admin

14-Oct-20 17:51

If purchased on last day no depreciation.

CA Suraj Lakhotia

Admin

14-Oct-20 17:51

Thank you sir

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 17:52

Sir, but how can we know if the closing balance is after charging depreciation or before charging depreciation.

Thread Starter

ALDRIN G

CA Inter

★ 12K+

14-Oct-20 18:08

Generally if it is mentioned that depreciation is to be provided or charge depreciation, the balance is before depreciation.

CA Suraj Lakhotia

Admin

15-Oct-20 10:55