Question No 15 Chapter No 12

Question No 15 Chapter No 12

15. The Sameer Transport Company purchased 10 Trucks at 90,000 each on 1st April 2011. on 1st October 2013 one of the Trucks was involved in accident and is completely destroyed 56,200 was received from the Insurance Company for the sum of 1,00,000. the company writes off 20% per annum on Diminishing Balance Method. The company Maintains the calendar year as its financial year. Show the Truck Account for four years 31st December 2014.

The solution of Question No 15 Chapter No 12: –

Dr.Machinery A/cCr.
1st Apr.2011To Bank A/c (36,000 + 4,000) 9,00,00031st Dec 2012By Deprecation A/c (9 months) 1,35,000
    31st Dec 2012By Balance C/d  7,65,000
   9,00,000   9,00,000
1st Apr 2017To Balance b/f 7,65,00031st Dec 2013By Deprecation A/c 1,53,000
    31st Dec 2013By Balance C/d
   7,65,000   7,65,000
1st Jan.2013To Balance b/f 6,12,0001st Oct 2013By Deprecation A/c 5,897
1st Oct.2013To Profit & Loss A/c 4,81031st Dec 2014By Bank A/c 28,415
1st Oct.2013To Bank A/c 1,00,00031st Dec 2014By Profit & Loss A/c 5,000
    31st Dec 2015By Balance C/d (4,30,830 + 95,000) 5,35,640
   7,16,810   7,16,810

Working Note:
Calculation of Profit or Loss on Sale

Statement Showing profit or loss on the sale of Machinery
Machinery Purchase on of Equipment as on 1st Oct. 201640,000
Less: – Amount of Depreciation charged on the year 2016-17 
50,000 *15%* 6/123,750
Amount of Depreciation charged on the year 2017-18 
46,250 *15%* 12/126,938
Amount of Depreciation charged on the year 2018-19 
39,312 *15%* 12/125,897
Book value of asset as of 1st Oct 201933,415
Sale Price of Machinery 28,415
Loss on the sale of the asset5,000

Depreciation | Meaning | Methods | Examples

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

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