On 1st April, 2019, furniture costing ₹ 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for ₹ 5,000.

On 1st April, 2019, furniture costing ₹ 55,000 was purchased. It is estimated that its life is 10 years at the end of which it will be sold for ₹ 5,000. Additions are made on 1st April, 2020 and 1st October, 2022 to the value of ₹ 9,500 and ₹ 8,400 (Residual values ₹ 500 and ₹ 400 respectively). Show the Furniture Account for the first four years, if Depreciation is written off according to the Straight Line Method.

[Balance of Furniture A/c on 31st March, 2023 – ₹ 49,800.]

[Hint: Depreciation: 2019 – 20 = ₹ 5,000; 2020 – 21 = ₹ 5,900; 2021 – 22 = ₹ 5,900; 2022 – 23 = ₹ 6,300.]