Rs. 35,000. The Asset Disposal account will be prepared in the following manner: · Part 3

, Depreciation for the year - % of Rs. , (Rs. , – Rs. , ) for full year , % of Rs. , for month , , Illustration Solve illustration , if the firm maintains furniture disposal account prepared along with furniture account and provision for depreciation on furniture account. Books of Anil Traders Furniture Account , Furniture disposal Oct. , , , , Provision for Depreciation on Furniture Account Particular Oct. Furniture , Apr. , disposal , Mar. , , , Furniture Disposal Account Particular Oct. Furniture Oct. Provision for , , Profit & Loss ( Loss on sale ) , , Illustration On Jan , Jain & Sons purchased a second hand plant costing Rs. , , and spent Rs. , on its overhauling. It also spent Rs. , on transportation and installation of the plant. It was decided to provide for depreciation @ of % on written down value. The plant was destroyed by fire on July , and an insurance claim of Rs. , was admitted by the insurance company. Prepare plant account, accumulated depreciation account and plant disposal account assuming that the company closes its books on December , every year. Solution Books of Jain & Sons. Plant Account Dec. Dec. Dec. Jul. Plant disposal Accumulated Depreciation Account Dec. , Dec. , , , , , , , , Dec. , , , Dec. , , , , , , , Jul. Plant disposal , , July , , , , , Plant Disposal Account Jul. Plant Jul. Accumulated , , depreciation Insurance Co. , Profit & Loss , ( Loss on sale ) Working Notes: . Calculation of Depreciation Amount (Rs.) Original cost on . . ( , , + , + , ) Depreciation for the year (@ % of Rs. , , ) ( , ) , , Depreciation for the year (@ % of Rs. , , ) ( , ) , , Depreciation for the