IGCSE Accounting Paper-1: Specimen Questions with Answers 288 - 290 of 338
Passage
Anand depreciates his furniture using the straight line method of depreciation. He provides a full year depreciation in the year of purchase and none in the year of disposal. He provided the following information:
| Furniture | ||
| Cost $ | Accumulated Depreciation $ | |
| At 31 Dec 2016 | 55000 | 11000 |
| At 31 Dec 2017 | 55000 | 16500 |
There were no new purchase or disposal during the year ended 31 Dec 2017.
Question 288 (2 of 5 Based on Passage)
Explanation
Annual Depreciation charge for the year ended 31 December 2017: $
Accumulated Dep. as at 31 Dec 2017 16500
Less: Accumulated Dep. as at 31 Dec 2016 (11000)
Depreciation charge 5500
Further Information:
On 1 April 2018, Anand purchased a new furniture, cost $ 15000.
On 15 June 2019, he sold old furniture costing $ 6000 and on which three years depreciation had been provided.
Question 289 (3 of 5 Based on Passage)
Write in Brief
One Liner▾Give the journal entry for eliminating the accumulated depreciation on the furniture sold on 15 June 2019. (Marks 2)
Explanation
| Date | Dr $ | Cr $ | |
| 2019 June 15 | Provision for depreciation on Furniture A/c | 1800 | |
| Disposal A/c | 1800 |
Question 290 (4 of 5 Based on Passage)
Write in Short
Short Answer▾Complete the following table by filling in the required amounts of each of the following. (Marks 12)
| Calculations | $ | |
| Furniture at Cost on 31 December 2018 | ||
| Furniture at Cost on 31 December 2019 | ||
| Depreciation Charge for the year ended 31 December 2018 | ||
| Accumulated Depreciation at 31 December 2018 | ||
| Depreciation charge for the year ended 31 December 2019 | ||
| Accumulated Depreciation at 31 December 2019 |
Explanation
| Calculations | $ | |
| Furniture at Cost on 31 December 2018 | ||
| Furniture at Cost on 31 December 2019 | ||
| Depreciation Charge for the year ended 31 December 2018 | ||
| Accumulated Depreciation at 31 December 2018 | ||
| Depreciation charge for the year ended 31 December 2019 | ||
| Accumulated Depreciation at 31 December 2019 |