Question

21. On January 01, 2011, Vinod Transport Co. purchased five trucks for Rs. 20,000 each. Depreciation has been
provided at the rate of 10% p.a. using straight line method and accumulated in provision for depreciation
account. On January 01, 2012, one truck was sold for Rs. 15,000. On July, 2013, another truck (purchased for
Rs. 20,000 on Jan 01, 2011) was sold for Rs. 18,000. A new truck costing Rs. 30,000 was purchased on October,
01, 2013. You are required to prepare trucks account, Provision for Depreciation account, and also give effect
to Profit and loss account and Balance sheet.

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Answer 1

this is the right answer