Rs. 35,000. The Asset Disposal account will be prepared in the following manner: · Part 2

amount of depreciation Year - % on Rs. , , for one year , Year - % on Rs. , for one year Year – % on Rs. , for year , % on Rs. , for six months , % on Rs. , for three months , , . Loss on sale of first truck Original cost on January , Less depreciation at % ( , ) Book value on January , , Sales price realised on . . ( , ) Loss on sale of first machine , . Profit on sale of second truck Original Cost of second truck (Less) depreciation charged , , (upto June, ) , , Book value of second truck , Sale price of second truck , Profit on sale , Illustration On April , , following balances appeared in the books of M/s Kanishka Traders: Furniture account Rs. , , Provision for depreciation on furniture Rs. , . On October , a part of furniture purchased for Rupees , in April , was sold for Rs. , . On the same date a new furniture costing Rs. , was purchased. The depreciation was provided @ % p.a. on original cost of the asset and no depreciation was charged on the asset in the year of sale. Prepare furniture account and provision for depreciation account for the year ending March , . Solution Books of Kanishka Traders Furniture Account J.F , Oct. , Oct. , Provision for , depreciation , Profit and Loss ( Loss on sale ) , , , Provision for Depreciation on Furniture Account Particular Oct. Furniture , , ( Accumulated depreciation on furniture sold ) , ( Rs. , + , , , ) , Working Notes . Calculation of amount of depreciation Calculation of loss on sale Original cost of furniture on . . Less: Depreciation for year from . . to . . (no depreciation for the year of sale @ % p.a. on original cost , Value as on . . , Sale price , . Loss on sale