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6. On 1st July, 1992, Ajanta Traders, Pune, acquired a building for Rs. 8,00,000. On 1st
April, 1993, an extension was made to the above building by spending Rs. 4,00,000.
On 1st October 1994, half of the building was sold through a broker for Rs. 5,60,000
and brokerage at 2% of the selling price was paid. Depreciation is charged on 31st
March every year at 10% p.a. under the Diminishing Balance Method. Prepare the
Building Account and the Depreciation account for three years.
7. On 1-1-2002 Champaklal & Sons purchased furniture for Rs. 15000. On 1-7-2002 additional furniture was
purchased for Rs. 8000. On 30-6-2003 the furniture purchased on 1-1-2002 was skid for Rs. 12,000. The
firm charges depreciation @ 10% p.a. under the reducing balance method. Prepare Furniture account, for
the years 2002, 2003, 2004 assuming that accounting year of the firm is calendar year and depreciation
account for the year ending 31 – 12 - 2003.
8. Saishree Ltd. Purchased a Machine worth Rs. 1,00,000 on 1st April, 2000. On 1st April 2001, the company
purchased additional machine for Rs. 20,000. On 1st Oct 2002, the company sold the machine purchased on
1st April, 2001 for Rs. 16,000. Company writes off depreciation at the rate of 10% p.a. on reducing balance
system. The Accounts being closed on 31st March every year. Show Machinery account and Depreciation
account for 3 years. i.e. 2000 – 01, 20010 – 02 & 2002 – 03.
9. On 1st July, 2000. Raj traders, Baroda, purchased a flat for its office for Rs. 10,00,000. On 1st April, 2001
adjacent flat purchased for Rs. 16,00,000. On 1st October, 2002 half of the total office premises were sold
through a broker for Rs. 25,00,000, brokerage @ 2% of the selling price was paid. Depreciation is charged
on 31st March every year @ 10% p.a. under Reducing Balance Method. Prepare Premises account for three
years.
10. Wadhwa Trading company purchased furniture on 1-1-2004 for Rs. 1,50,000. On 1-7-2004 additional
furniture was purchased for Rs. 80,000. On 1-7-2005 furniture purchased on 1-1-2004 was sold for Rs.
1,00,000 & new furniture of Rs. 1,20,000 was purchased on the same date. Depreciation is charged at 10
% p.a. on Reducing Balance Method. Prepare Furniture account and Depreciation account for three years
ending 31st December, 2004, 2005, 2006.