POR associates bought a computer set on 01.04.2020 for 2,00,000 and charged depreciation @ 20% p.a. on diminishing balance method. They made furthe...

Question

POR associates bought a computer set on 01.04.2020 for 2,00,000 and charged depreciation @ 20% p.a. on diminishing balance method. They made further additions as follows: Date Amount 01.04.2021 1,50,000 01.04.2023 1,00,000 On 01.04.2023 it was decided to change the method to straight line basis and charge depreciation assuming the expected life of all the computers to be 8 years from 01.04.2023. Prepare Computers A/c for year ending 31.03.2024. [Sept. 2024, 5 Marks]

Accepted Answer

Option : Correct Option. Solution: Depreciation on W.D.V. @ 20% | Particulars | Computer I (₹) | Computer II (₹) | | :--- | ---: | ---: | | 1.4.2020 | 2,00,000 | | | Depreciation | (40,000) | | | 1.4.2021 | 1,60,000 | 1,50,000 | | Depreciation | (32,000) | (30,000) | | 1.4.2022 | 1,28,000 | 1,20,000 | | Depreciation | (25,600) | (24,000) | | 1.4.2023 WDV | 1,02,400 | 96,000 |
Depreciation on SLM for 2023-24 | Particulars | Computer I (₹) | Computer II (₹) | Computer III (₹) | | :--- | :---: | :---: | :---: | | Basis | 1,02,400 / 8 | 96,000 / 8 | 1,00,000 / 8 | | Depreciation | (12,800) | (12,000) | (12,500) | | Balance | 89,600 | 84,000 | 87,500 |
Computers Account | Date | Particulars | Amount (₹) | Date | Particulars | Amount (₹) | | :--- | :--- | ---: | :--- | :--- | ---: | | 1.4.2023

| To Balance B/d [1,02,400 + 96,000]
To Bank III | 1,98,400
1,00,000 | 31.3.2024 | By Depreciation:
I: 12,800
II: 12,000
III: 12,500
By Balance c/d:
I: 89,600
II: 84,000
III: 87,500 |
37,300

2,61,100 | | | TOTAL | 2,98,400 | | TOTAL | 2,98,400 |

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