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From the following information calculate how much amount of depreciation will be shown in the Income and Expenditure A/c for the year 2021-22 :

As on 31 March, 2021As on 31 March, 2022
FurnitureRs. 1,80,000Rs. 1,60,250

Furniture worth Rs. 8,000 was sold for Rs. 10,000 on 1 April, 2021.

Solution

✅ Correct Option: 2

Opening furniture 1,80,000 minus book value of furniture sold 8,000 = 1,72,000.

Closing furniture = 1,60,250.

Depreciation = 1,72,000 minus 1,60,250 = Rs. 11,750.

Note: Topic relates to NPO; placed under Financial Statements/Nature-Structure as closest fit.

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