Harshit started a grocery shop "Goel Kirana Shop" and purchased furniture of worth Rs. 80,000 on July 1, 2012 and promised the vendor that he will purchased similar furniture for the shop in next year. On 1 July 2013, Harshit told vendor regarding the quality of the furniture and wishes to exchange with new one but vendor denied. Harshit then purchased one new furniture of similar cost as the previous one and dispose the first furniture for Rs. 30,000. Harshit calculates depreciation of 10% every year under WDV method and account closes on 31 December every year. You are required to prepare furniture account from 2012-2015

Harshit started a grocery shop "Goel Kirana Shop" and purchased furniture of worth Rs. 80,000 on July 1, 2012 and promised the vendor that he will purchased similar furniture for the shop in next year. On 1 July 2013, Harshit told vendor regarding the quality of the furniture and wishes to exchange with new one but vendor denied. Harshit then purchased one new furniture of similar cost as the previous one and dispose the first furniture for Rs. 30,000. Harshit calculates depreciation of 10% every year under WDV method and account closes on 31 December every year. You are required to prepare furniture account from 2012-2015

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 45P

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