Question

Van was purchased on 1st April 2016 for * 60,000 and 5,000 was spent on its repair
and registration. On 1st October, 2017 another van was purchased for 70,000. On
1st April, 2018, the first van purchased on 1st April, 2016 was sold for 45.000 and a new
van costing 1.70,000 was purchased on the same date. Show the Van Account from 2016-17
to 2018-19 on the basis of Straight Line Method, if the rate of Depreciation charged is
10% p.a. Assume that books are closed on 31st March every year.
[Balance of Van A/c: 2.12,500 (Van II: 59,500 +
Van III: 1,53,000): Loss on Sale of Van-77,000.1
Hint: Book Value of Van I (1st April, 2018) 752,000,
Loss on sale of Van = 52,000 - 745,000 = 7,000
Depreciation (2016-17)
Depreciation (2018-19)
Van I = * 65,000 x 10/100 = 76,500
Van II = 70,000 x 10/100 = 7,000
Depreciation (2017-18)
Van III = 1.70,000 x 10/100 = 17,000.1
Van I = 65.000 x 10/100 = * 6,500
Van II = 70.000 x 10/100 X 6/12 = 3,500​

Answer 1

Answer:

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