Question No 08 Chapter No 17

Question No 08 Chapter No 17

08. The following expenses relate to a motor lorry, purchased by a limited company for its business:

  1. Bought an lorry for Rs 1,20,000 in an auction and paid Rs 1,500 as freight and cartage
  2. Its overhauling charges amounted to Rs 30,000
  3. Other accessories were purchased for Rs 18,000
  4. Lorry was badly damaged in an accident and its repair cost was Rs 42,600
  5. Compensation was paid to person involved in accident Rs 14,500
  6. Lorry was sold for Rs 1,25,000
  7. Driver’s salary, petrol expenses etc. were Rs 34,720
    Pass the necessary journal entries of the above and prepare a lory A/c

The solution of Question No 08 Chapter No 17: –

In the Books of ………
aLorry A/cDr. 1,21,500 
 To Cash A/c   1,21,500
 (Being lorry purchased from auction)   
bLorry A/cDr. 30,000 
 To Cash A/c  30,000
 (Being cash paid for overhauling charges)   
cLorry A/cDr. 18,000 
 To Cash A/c   18,000
 (Being accessories for lorry purchased)    
dRepair A/cDr. 42,600 
 To Cash A/c   42,600
 (Being repaid cost paid for lorry)    
eCompensation for accident A/cDr. 14,500 
 To Cash A/c   14,500
 (Being compensation for accident paid )    
fCash A/cDr. 1,25,000 
 To Lorry A/c   1,25,000
 (Being lorry sold )    
gDiver’s Salary, Petrol Exp. A/cDr. 34,720 
 To Cash A/c   34,720
 (Being cash paid for diver’s salary, Petrol Exp. etc)    
Dr.Lorry A/cCr.
aTo Cash A/c 1,21,500fBy Cash A/c 7,500
bTo Cash A/c 30,000    
cTo Cash A/c 18,000    
    By Balance c/d 44,500
   1,69,500   1,69,500

The provision in accounting: Types and Treatment

Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

Check out the Accountancy Class +1 by D.K. Goal (Arya Publication) from their official Site.

ISC Accounts 11 20 Image min 197x300 - Question No 08 Chapter No 17 - D.K Goal 11 Class
D K Goel accountancy +1 – ISC_Accounts_11_20_ImageQuestion No 42 Chapter No 11 – D.K Goal 11 Class

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