PQR associates bought a computer set on 01.04.2020 for 2,00,000 and charged depreciation @20% p.a. on diminishing balance method. They made further…

CA Foundation · Accounting · PYQS · September 2024
PQR associates bought a computer set on 01.04.2020 for 2,00,000 and charged depreciation @20% p.a. on diminishing balance method. They made further additions as follows: Date Amount 01.04.2021 1,50,000 01.04.2023 1,00,000 On 01.04.2023 it was decided to change the method to straight line basis and charge depreciation assuming the expected life of all the computers to be8 years from 01.04.2023. Prepare Computers A/c for year ending 31.03.2024.

Suggested Answer and Working Notes:

Calculation of Depreciation Purchased on Jan.1,2020 (₹) Purchased on Jan.1,2021 (₹) Total WDV Total Depreciation (₹) 1-4-20 Cost 2,00,000 Depreciation (40, 000) 40,000 Written Down Value (WDV) 1,60,000 1,60,000 1-4-21 Cost - 1,50,000 Depreciation (32, 000) (30, 000) 62,000 1-4-22 Written Down Value (WDV) 1,28,000 1,20,000 2,48,000 Depreciation (25, 600) (24, 000) 49,600 1-4-23 Written Down Value (WDV) 1,02,400 96,000 1,98,400 Computers Account Date Particulars Amount ₹ Date Particulars Amount ₹ 1-4-23 To Balance b/d 1,98,400 31-3-24 By Depreciation (₹ 24,800+12,500) 37,300 1-4-23 To Bank 1,00,000 31-3-24 By Balance c/d 2,61,100 2,98,400 2,98,400 1-4-24 To Balance b/d 2,61,100

Topics: Accounts from Incomplete Records, Depreciation and Amortisation

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic