Based on the following, answer the question:
Balance Sheet of Pioneer Ltd., as on March 31, 2017
|
Particulars |
Note |
31st March 2017 (₹) |
31st March 2016 (₹) |
|
I. Equity and Liabilities |
|
|
|
|
1. Shareholders Funds |
|
|
|
|
a) Share Capital |
1 |
7,00,000 |
5,00,000 |
|
b) Reserve and Surplus |
2 |
4,20,000 |
2,50,000 |
|
2. Non-current Liabilities |
|
|
|
|
Long term borrowings: Bank Loan |
|
50,000 |
1,00,000 |
|
3. Current Liabilities |
|
|
|
|
a) Trade payables |
|
45,000 |
50,000 |
|
b) Other current liabilities: Outstanding rent |
|
7,000 |
5,000 |
|
c) Short-term provisions |
3 |
50,000 |
30,000 |
|
Total |
|
12,72,000 |
9,35,000 |
|
II. Assets |
|
|
|
|
1. Non-current assets |
|
|
|
|
a) Fixed assets |
|
|
|
|
(i) Tangible assets |
4 |
5,00,000 |
5,00,000 |
|
(ii) Intangible assets |
5 |
95,000 |
1,00,000 |
|
b) Non-current investments |
|
1,00,000 |
…. |
|
2. Current assets |
|
|
|
|
a) Inventories |
|
1,30,000 |
50,000 |
|
b) Trade receivables |
|
1,20,000 |
80,000 |
|
c) Cash and Cash equivalents |
6 |
3,27,000 |
2,05,000 |
|
Total |
|
12,72,000 |
9,35,000 |
Notes to Accounts:
|
Particulars |
31st March 2017 (₹) |
31st March 2016 (₹) |
|
1. Equity share capital |
7,00,000 |
5,00,000 |
|
2. Reserve and Surplus |
|
|
|
Surplus: i.e., Balance in statement of Profit and Loss |
4,20,000 |
2,50,000 |
|
3. Short term provision: |
|
|
|
Provision for Taxation |
50,000 |
30,000 |
|
4. Fixed Assets |
|
|
|
Tangible assets |
|
|
|
- Equipment |
2,30,000 |
2,00,000 |
|
- Furniture |
2,70,000 |
3,00,000 |
|
|
5,00,000 |
5,00,000 |
|
5. Intangible Assets |
|
|
|
Patents |
95,000 |
1,00,000 |
|
6. Cash and Cash equivalents |
|
|
|
i) Cash |
27,000 |
5,000 |
|
ii) Bank balance |
3,00,000 |
2,00,000 |
|
|
3,27,000 |
2,05,000 |
During the year, equipment costing ₹80,000 was purchased. Loss on sale of equipment amounted to ₹5,000. Depreciation of ₹15,000 and ₹30,000 charged on equipment and furniture respectively. Proposed Dividend for the year 2015-16 was ₹50,000, which was paid during the year.
What is the amount of depreciation on equipment?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹15,000
The additional information states the depreciation charged on equipment as ₹15,000 (and ₹30,000 on furniture).
It is a non-cash charge, so it is added back to the net profit in the operating activities section, and it is also credited to the Equipment Account when the sale proceeds are worked out.
NCERT (2026-27 edition):
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