Accountancy, asked by kaviya1297, 7 months ago

the LG transport company purchased 10 trucks at Rs. 4500000 each on 1.4.2014. On 1st October 2016, one of the truck is involved in an accident Landis completely destroyed and Rs 2700000 is received from the insurance in full settlement. On the same date another truck is purchased by the company for the sum of Rs. 5000000. The company write off 20% on the original cost per annum. The company observes the calender year as its financial year. Give the motor truck account for two years ending December 31, 2017​

Answers

Answered by aaravs618gmailcom
6

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

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