first three years. (Ans: Balance of Machine A/c as on . . Rs.
, , ). . On October , , a Truck was purchased for Rs. , , by Laxmi Transport Ltd.
Depreciation was provided at % p.a. on the diminishing balance basis on this truck. On December , this Truck was sold for Rs. , , .
Accounts are closed on 31st March every year. Prepare a Truck Account for the four years. (Ans: Profit on Sale of Truck Rs. , ).
. Kapil Ltd. purchased a machinery on July , for Rs. , , .
It purchased two additional machines, on April , costing Rs. , , and on October , costing Rs. , , . Depreciation is provided @ % p.a.
on straight line basis. On January , , first machinery become useless due to technical changes. This machinery was sold for Rs. , , .
prepare machinery account for years on the basis of calendar year. (Ans: Loss on sale of machine Rs. , , . Balance of Machine account as on .
On January , , Satkar Transport Ltd., purchased buses for Rs. , , each. On July , , one bus was involved in an accident and was completely destroyed and Rs. , , were received from the Insurance Company in full settlement.
Depreciation is writen off @ % p.a. on diminishing balance method. Prepare bus account from to . Books are closed on December every year.
(Ans: Profit on insurance claim Rs. , . Balance of Bus account as on . .
Rs. , , ). . On October , Juneja Transport Company purchased Trucks for Rs.
, , each. On July , , One Truck was involved in an accident and was completely destroyed and Rs. , , were received from the insurance company in full settlement. On December , another truck was involved in an accident and destroyed partially, which was not insured.
It was sold off for Rs. , , . On January , company purchased a fresh truck for Rs. , , .
Depreciation is to be provided at % p.a. on the written down value every year. The books are closed every year on