Practicing Success
From the trial balance and other information provided by school for the year ended 31st March 2017. Answer the question.
Additional Information: i. Tuition fee yet to be received for the year are ₹25,000. |
Depreciation on furniture is: |
₹ 10,000 ₹ 8,000 ₹ 5,000 ₹ 3,000 |
₹ 3,000 |
The correct answer is Option (4) - ₹ 3,000. As no other information is given so it is assumed that furniture is sold on April 1, 2016. Book Value on March 31, 2017 = 1,00,000 Among this remaining furniture, ₹40000 furniture was purchase in mid year i.e. on 1 Oct, 2016. Depreciation on furniture of 10,000 for one year = 10000 x 10/100 Total depreciation = 1000 + 2000 |