Question

Or
A truck was purchased on 1st April, 2018 for * 10,00,000. On 1st October, 2018,
another truck was purchased for 6,00,000. Estimated scrap values were * 40,000
and 20,000 respectively. Depreciation is to be provided @ 10% p.a. on the trucks
under the reducing balance system.
(i) Show the truck account for the year ended 31st March, 2019 and 2020.
(ii) Show how the truck account will appear in the balance sheet as at 31st March, 2020.​

Answer 1

1.

journal:

1.4.18 truck ac...dr 1000000

to sundry creditor ac 1000000

1.10.18 truck ac...dr 600000

to sundry creditor ac 600000

31.3.19 dep ac..dr. (96000+29000) 125000

to truck ac. 125000

31.3.20. dep ac... dr (86400+55100) 141500

to truck ac. 141500

2.value of:

1st truck:737600

2nd truck:475900