Question

M/s. Excel Computers has a debit balance of ₹ 50,000 (original cost ₹ 1,20,000) in computers account on April 01, 2010. On July 01, 2010 it purchased another computer costing ₹ 2, 50,000. One more computer was purchased on January 01, 2011 for ₹ 30,000. On April 01, 2014 the computer which has purchased on July 01, 2010 became obsolete and was sold for ₹ 20,000. A new version of the IBM computer was purchased on August 01, 2014 for ₹ 80,000. Show Computers account in the books of Excel Computers for the years ended on March 31, 2011, 2012, 2013, 2014 and 2015. The computer is depreciated @10% p.a. on straight line method basis.

Answer 1

Dr.	Books of M/s Excel Computers Computer Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2010				2011
Apr.01	Balance b/d (i)		50,000	Mar.31	Depreciation (i) 12,000 (ii) 18,750 (iii) 750		31,500
2011
Jul.01	Bank (ii)		2,50,000
Jan.01	Bank (III)		30,000	Mar.31	Balance c/d (i) 38,000 (ii) 2,31,250 (iii) 29,250		2,98,500
			3,30,000				3,30,000
2011				2012
Apr.01	Balance b/d (i) 38,000 (ii) 2,31,250 (iii) 29,250		2,98,500	Mar.31	Depreciation (i) 12,000 (ii) 25,000 (iii) 3,000		40,000
				Mar.31	Balance c/d (i) 26,000 (ii) 2,06,250, (iii) 26,250		2,58,500
			2,98,500				2,98,500
2012				2013
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 26,000 (ii) 2,06,250 (iii) 26,250		2,58,500		(i) 12,000, (ii)25,000, (iii) 3,000		40,000
				Mar.31	Balance c/d (i) 14,000, (ii) 1,81,250 (iii) 23,250		2,18,500
			2,58,500				2,58,500
2013					2014
Apr.01	Balance b/d			Mar.31	Depreciation
	(i) 14,000 (ii) 1,81,250 (iii) 23,250		2,18,500		(i) 12,000 (ii) 25,000 (iii) 3,000		40,000
				Mar.31	Balance c/d (i) 2,000 (ii) 1,56,250 (iii) 20,250		1,78,500
			2,18,500				2,18,500
2014				2014
Apr.01	Balance c/d			Apr.01	Bank (ii)		20,000
	(i) 2,000, (ii) 1,56,250 (iii) 20,250		1,78,500	Apr.01	Profit and Loss (Loss)		1,36,250
				2015
Aug.01	Bank (iv)		80,000	Mar.31	Depreciation (i) 2,000, (iii) 3,000, (iv) 5,333		10,333
				Mar.31	Balance c/d (iii) 17,250, (iv) 74,667		91,917
			2,58,500				2,58,500

Note:

As per the solution, the closing balance, as on 31^st March, 2005 is ₹ 91,917; however, as per the book it is ₹ 83,917.