Question

a Transport Company purchases 5 trucks at RS 200000 each on 1st April, 2001. The company writes off depreciation @ 20% p.a. on original cost and observes calendar years as its accounting year. On 1st october, 2003, one of the truck is involved in an accident and is completely destroyed. Insurance company pays RS. 90000 in full settlement of claim. On the same day, the company purchases a used track for Rs. 100000 and spends RS. 20000 on its overhauling. Prepare Truck Account for the three years ending on 31st December,2003.

Answer 1

It is seen that products worth 30,000 were crushed because of flame. Against this, the insurance agency acknowledged a case of 20000.

The organization offers products at expense in addition to 33 1/3%.

The benefit of shutting stock, subsequent to considering the above exchanges is 30000. Beyond any doubt it will make a powerful effect.