Question

On 1st
January, 2010, the Jaipur
Golden Transport company purchased a truck
for ₹ 8,00,000. On 1st
July, 2011, this truck
involved in accident and was
completely destroyed and 600000 were received by a
cheque from the Insurance
Company in full settlement on 1 october 2011
On the same
date (ie., 1 st July, 2011) another
truck was purchased by the company for
1000000.
The company writes off 20% depreciation per annum under the written down method. Prepare Truck account and Depreciation account for 2010 to 2012 when books are closed on 31 March every year​

Answer 1

On 1st

January, 2010, the Jaipur

Golden Transport company purchased a truck

for ₹ 8,00,000. On 1st

July, 2011, this truck

involved in accident and was

completely destroyed and 600000 were received by a

cheque from the Insurance

Company in full settlement on 1 october 2011

On the same

date (ie., 1 st July, 2011) another

truck was purchased by the company for

1000000.

The company writes off 20% depreciation per annum under the written down method. Prepare Truck account and Depreciation account for 2010 to 2012 when books are closed on 31 March every year