Question

(Insurance claim) On 1st July, 2013, Geetanjali Transport Co. purchased a Truck for 4,50,000. On 1st January, 2016, the Truck was met with an accident and was destroyed. Insurance Company paid 2,00,000 and settled the claim. Another Truck was purchased on the same date for3500000. Prepare Truck A/c for 4 years assuming that books were closed on 31st March each year and Truck was depreciated @ 20% p.a. on written down value method. [And. Loss on sale 8,080; Balance of Truck 4,75,000]​

Answer 1

Explanation:

Insurance claim) On 1st July, 2013, Geetanjali Transport Co. purchased a Truck for 4,50,000. On 1st January, 2016, the Truck was met with an accident and was destroyed. Insurance Company paid 2,00,000 and settled the claim. Another Truck was purchased on the same date for3500000. Prepare Truck A/c for 4 years assuming that books were closed on 31st March each year and Truck was depreciated @ 20% p.a. on written down value method. [And. Loss on sale 8,080; Balance of Truck 4,75,000]