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/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Apr.2011 To Bank A/c (36,000 + 4,000) 9,00,000 31st Dec 2012 By Deprecation A/c (9 months) 1,35,000 31st Dec 2012 By Balance C/d 7,65,000 9,00,000 9,00,000 1st Apr 2017 To Balance b/f 7,65,000 31st Dec 2013 By Deprecation A/c 1,53,000 31st Dec 2013 By Balance C/d 6,12,000 7,65,000 7,65,000 1st Jan.2013 To Balance b/f 6,12,000 1st Oct 2013 By Deprecation A/c 5,897 1st Oct.2013 To Profit & Loss A/c 4,810 31st Dec 2014 By Bank A/c 28,415 1st Oct.2013 To Bank A/c 1,00,000 31st Dec 2014 By Profit & Loss A/c 5,000 31st Dec 2015 By 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 Particulars Amount Machinery Purchase on of Equipment as on 1st Oct. 2016 40,000 Less: – Amount of Depreciation charged on the year 2016-17 50,000 *15%* 6/12 3,750 Amount of Depreciation charged on the year 2017-18 46,250 *15%* 12/12 6,938 Amount of Depreciation charged on the year 2018-19 39,312 *15%* 12/12 5,897 Book value of asset as of 1st Oct 2019 33,415 Sale Price of Machinery 28,415 Loss on the sale of the asset 5,000

Depreciation | Meaning | Methods | Examples

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