computer is depreciated @ p.a. on straight line method basis. (Ans: Loss on sale of computer Rs. , , .
Balance of computers account as on . . Rs. , ).
. Carriage Transport Company purchased trucks at the cost of Rs. , , each on April , . The company writes off depreciation @ % p.a.
on original cost and closes its books on December , every year. On October , , one of the trucks is involved in an accident and is completely destroyed. Insurance company has agreed to pay Rs. , in full settlement of the claim.
On the same date the company purchased a second hand truck for Rs. , , and spent Rs. , on its overhauling. Prepare truck account and provision for depreciation account for the three years ended on December , .
Also give truck account if truck disposal account is prepared. (Ans: Loss of settlement of Truck Insurance Rs. , . Balance of Provision for depreciation A/c as on .
. Rs. , , . Balance of Trucks account as on .
Saraswati Ltd. purchased a machinery costing Rs. , , on January , . A new machinery was purchased on May, for Rs.
, , and another on July , for Rs. , , . A part of the machinery which originally cost Rs. , , in was sold for Rs.
, on October , . Show the machinery account, provision for depreciation account and machinery disposal account from to if depreciation is provided at % p.a. on original cost and account are closed on December , every year. (Ans: Loss on sale of Machine Rs.
, . Balance of Provision for dep. A/c as on . .
Rs. , , . Balance of Machine A/c as on . .
Rs. , , ). . On July , Ashwani purchased a machine for Rs.
, , on credit. Installation expenses Rs. , are paid by cheque. The estimated life is years and its scrap value after years will be Rs.
, . Depreciation is to be charged on straight line basis. Show the journal entry for the year and prepare necessary ledger accounts for