Question

On 1st January, 2017, the Jaipur Transport Company purchased a Truck for 4,00,000. On 1
July, 2018, this Truck was involved in an accident and was completely destroyed and 3,00,00
were received from the Insurance Company in full settlement. On the same date another Tru
was purchased by the Co. for 5,00,000. The company writes off 20% depreciation p.a.
Written Down Value Method and the accounts are closed on 31st March every year. Givet
Truck Account for 3 years.​

Answer 1

Answer:

July, 2018, this Truck was involved in an accident and was completely destroyed and 3,00,00

were received from the Insurance Company in full settlement. On the same date another

was purchased by the Co. for 5,00,000. The company writes off 20% depreciation p.a.

Written Down Value Method and the accounts are closed on 31st March every year.

Truck Account for 3 years.​