Accountancy, asked by somyashukla1609, 3 months ago

Q.2 A company purchase 5 trucks 200000/- Each. After 3 year A truck will be sold by
company 87500/-.
Company charged depreciation @10% PA by diminishing balance method
Prepare truck account for first 5 years ​

Answers

Answered by vikashsingh8238
1

Answer:

Answer :

Dr Truck Account Cr

Date Particulars JF Amt.(Rs) Date Particulars JF Amt.(Rs)

2001 Apr 1 To Bank A/c 10,00,000 2001 Dec 31 By Balance c/d 10,00,000

10,00,000 10,00,000

2002 Jan 1 To Balance b/d 10,00,000 2002 Dec 31 By Balance c/d 10,00,000

10,00,000 10,00,000

2003 Jan 1 To Balance b/d (T1) 10,00,000 2003 Oct 1 By Truck Disposal A/c 20,00,000

Oct 1 To Bank A/c (T2) 1,20,000 Dec 31 By Balance c/d 9,20,000

11,20,000 11,20,000

Dr Provision for Depreciation Account Cr

Date Particulars JF Amt.(Rs) Date Particulars JF Amt.(Rs)

2001 Dec 31 To Balance c/d 1,50,000 2001 Dec 31 By Depreciation A/c 1,50,000

1,50,000 1,50,000

2002 Dec 31 To Balance c/d 3,50,000 2002 Jan 1 By Balance b/d 1,50,000

Dec 31 By Depreciation A/c 2,00,000

3,50,000 3,50,000

2003 Oct 1 To Trunk Disposal A/c 1,00,000 2003 Jan 1 By Balance b/d 3,50,000

Dec 31 To Balance c/d 4,46,000 Oct 31 By Depreciation A/c (Dep till Oct 9 months) 30,000

Dec 31 By Depreciation A/c (Old)(T1) 1,60,000

(New)(T2) = 6,000

1,66,000

5,46,000 5,46,000

Dr Truck Disposal Account Cr

Date Particulars JF Amt.(Rs) Date Particulars JF Amt.(Rs)

2003 Oct 1 To Truck A/c 2,00,000 2003 Oct 1 By Provision for Depreciation A/c 1,00,000

Oct 1 By Insurance Co (Claim Amount) 70,000

Oct 1 By Profit & Loss A/c (Loss on Sale) 30,000

2,00,000 2,00,000

Working Note

Total Depreciation Charged on Truck @ 20%

Dec 2001 = 30,000

Dec 2002 = 40,000

Oct 2003 = 30,000

Rs.1,00,000

Cost of truck at disposal = 2,00,000−1,00,000=Rs.1,00,000

Profit or Loss on sales of truck

= 1,00,000−70,000=Rs.30,000 (Loss)

Similar questions