Question

Star Ltd. Purchased 10 trucks at Rs. 5,40,000 each on 1st July, 2011. On 1st January, 2014,

One of the truck is involved in an accident and is completely destroyed. A sum of Rs.

3,24,000 is received from the Insurance Company in full settlement. On the same date,

another truck is purchased by the company for a sum of Rs. 6,00,000. The company writes

off depreciation @ 20% p.a. on the original cost and closes its books every year on 31st

March. Give the Trucks Account for three years ending 31st March, 2014.​

Answer 1

Explanation:

book value on 31 March 2014 is 2187000