Question : The book value of the furniture on 1st April 2019 is Rs. 30,000. Half of this furniture is sold for Rs. 10,000 on 30th September 2019. Depreciation is to be charged on furniture @ 10% p.a. Calculate loss on sale of furniture.

Option 1: Rs 4,250

Option 2: Rs 5,000

Option 3: Rs 2,500

Option 4: None of the above

Question : Calculate the amount of depreciation on Furniture and loss on the sale of furniture:

Opening balance of furniture Rs 2,000

Closing balance of furniture Rs 1,080

Sale of furniture Rs 750

Depreciation charged on furniture is 10%.

Option 1: loss on sale of furniture Rs nil and depreciation charged Rs 108

Option 2: depreciation on furniture Rs 200 and gain on sale of furniture Rs 30

Option 3: loss on sale of furniture Rs 100 and depreciation charged Rs 200

Option 4: None of the above 

Question : Furniture as on 31st March, 2019—Rs. 4,40,000; Furniture (having book value as
on 1st April, 2019—Rs. 40,000) sold at a loss of 20% on 31st December, 2019. Furniture is to be depreciated @ 10% p.a. Furniture costing Rs. 3,00,000 was also purchased on 1st October, 2019. Calculate the amount of Depreciation and loss on the sale of furniture to be transferred to the Income and Expenditure Account.

Option 1: Loss on sale of furniture Rs 74,000
Depreciation Rs 55,000

Option 2: Loss on sale of furniture Rs 7,400
Depreciation Rs 3,000

Option 3: Loss on sale of furniture Rs 7,400
Depreciation  Rs 58,000

Option 4: Depreciation Rs 50,000
Loss on sale of furniture Rs 3,700

Question : Furniture as of 1st April, 2019—Rs. 2,20,000; Furniture (having book value as on
1st April, 2019—Rs. 20,000) sold at a gain (profit) of 20% on 31st December, 2019.
Furniture purchased on 1st October, 2019 for Rs. 1,00,000; Charge depreciation @ 10% p.a. on furniture. How much the amount is to be shown in the Income and Expenditure Account?

Option 1: Profit Rs 3,700 credited to Income and Expenditure Account.
Depreciation charged Rs 26,500 debited to Income and Expenditure Account. 

Option 2: Profit Rs.3,700 credited to Income and Expenditure Account
Rs.1,500 depreciation debited to Income and Expenditure Account 

Option 3: Loss Rs. 3,700 debited to Income and Expenditure Account
Rs. 20,000 depreciation debited to Income and Expenditure Account 

Option 4:  None of the above 

Question : Mention the net amount of 'source' or 'use' of cash when a fixed asset having book value of Rs.15,000 is sold at a loss of Rs.5,000 - 

Option 1: Use Rs.5,000

Option 2: Source Rs.10,000

Option 3: Use 10,000

Option 4: Source Rs.5,000