📖 generic · CBSE Class 11 English medium · ACCOUNTANCY · Page 45question

Creation of secret reserves within reasonable limits is justifiable on grounds of · Part 8

Chapter 7: Depreciation, Provisions and Reserves · ACCOUNTANCY

March . Give the truck account from to . (Ans: Loss on Ist Truck Insurance claim Rs. , , .

Loss on IInd Truck Rs. , , . Balance of Truck account as on . .

Rs. , , ). . A Noida based Construction Company owns cranes and the value of this asset in its books on April , is Rs.

, , . On October , it sold one of its cranes whose value was Rs. , , on April , at a % profit. On the same day it purchased cranes for Rs.

, , each. Prepare cranes account. It closes the books on December and provides for depreciation on % written down value. (Ans: Profit on sale of crane Rs.

, . Balance of Cranes account as on . . Rs.

,15000). . Shri Krishan Manufacturing Company purchased machines for Rs. , each on July , .

On October , , one of the machines got destroyed by fire and an insurance claim of Rs. , was admitted by the company. On the same date another machine is purchased by the company for Rs. , , .

The company writes off % p.a. depreciation on written down value basis. The company maintains the calendar year as its financial year. Prepare the machinery account from to .

(Ans: Loss on settle of insurance claim Rs. , . Balance of Machine account as on . .

Rs. , , ). . On January , , a Limited Company purchased machinery for Rs.

, , . Depreciation is provided @ % p.a. on diminishing balance method. On March , , one fourth of machinery was damaged by fire and Rs.

, were received from the insurance company in full settlement. On September , another machinery was purchased by the company for Rs. , , . Write up the machinery account from to .

Books are closed on December , every year. (Ans: Loss on settle of insurance claim Rs. , . Balance of Machine account as on .

A Plant was purchased on 1st July, at a cost of Rs. , , and Rs. , were spent on its

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