A-One Industries follows financial year as its accounting period. On 1st December 2007, the company bought five computers for a total consideration of Rs 5,00,000. The company estimates the useful life of the computers to be four years with negligible residual value. The company charges depreciation on a SLM basis. In the year of acquisition and disposal proportionate depreciation is charged. On 15th January 2009, the hard disk of one of the computer became corrupted beyond repairs and accordingly the computer was disposed off for Rs 30,000. The company sold two of the computers on 31st July 2010 for Rs. 80,000. The other two computers are still in working condition. a. Prepare the depreciation schedule for the years 2007-08 to 2010-11. b. Pass the necessary journal entries in the books of A-One Industries. How would the remaining two computers appear in the balance sheet of the company on с. 31st March 2011?

A-One Industries follows financial year as its accounting period. On 1st December 2007, the company bought five computers for a total consideration of Rs 5,00,000. The company estimates the useful life of the computers to be four years with negligible residual value. The company charges depreciation on a SLM basis. In the year of acquisition and disposal proportionate depreciation is charged. On 15th January 2009, the hard disk of one of the computer became corrupted beyond repairs and accordingly the computer was disposed off for Rs 30,000. The company sold two of the computers on 31st July 2010 for Rs. 80,000. The other two computers are still in working condition. a. Prepare the depreciation schedule for the years 2007-08 to 2010-11. b. Pass the necessary journal entries in the books of A-One Industries. How would the remaining two computers appear in the balance sheet of the company on с. 31st March 2011?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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