On January 01 2014, Dada Transport Co. purchased 3 trucks for Rs.15,000 each. Depreciation has been provided at the rate of 5% p.a. using straight line method and accumulated in provision for depreciation account. On January 01, 2015 one truck was sold for Rs.10,000. On July 01, 2016 another truck (purchased for Rs.15,000 on Jan 01, 2014) was sold for Rs.12,000. A new truck costing Rs.25,000 was purchased on October 01, 2016.

You are required to prepare Trucks Account, Provision for Depreciation Account and Truck Disposal Account for the year ended on December 2014, 2015 and 2016 assuming that the firm closes its accounts in December every year. 

			Books of Dada Transport Co. Truck Account
Dr.							Cr.
Date	Particulars	J.F.	Amount Rs.	Date	Particulars	J.F.	Amount Rs.
2014				2014
Jan 1	To Bank A/c		45,000	Dec 31	By Balance c/d		45,000
			45,000				45,000
2015				2015
Jan 1	To Balance b/d		45,000	Jan 1	By Truck Disposal A/c		15,000
				Dec 31	By Balance c/d		30,000
			30,000				30,000
2016				2016
Jan 1	To Balance b/d		30,000	July 1	By Truck Disposal A/c		15,000
Oct 1	To Bank A/c		25,000	Dec 31	By Balance c/d		40,000
			55,000	Answered by  | 4th Aug, 2016, 03:26: PM Practice Test All Questions Ask Doubt Which method of depreciation assumes that an asset should be depreciated more in the earlier years and less in the later years of use? Ramesh Ltd. purchased a Plant on 1st April, 2005 for Rs.15,000. It purchased another plant on 1st October, 2005 costing Rs.20,000 and on 1st July, 2006 costing Rs.30,000. On 1st January, 2007 the Plant purchased on 1st April, 2005 became useless and was sold for Rs.2,000. Show Plant Account charging 10% p.a. depreciation by fixed instalment method for four years. The plant purchased on 1st October, 2005 was sold for Rs.8,000 on 1st January, 2008. Accounts of the company are closed on 31st December each year. M/s Rao purchased a machinery for Rs.1,35,000. Further Rs.15,000 are spent on its installation. If the estimated useful life is 7 years and scrap value is Rs.10,000. Calculate the amount of depreciation.   Cost of Machine purchased by Vishal and Co. is Rs.6,20,000 with salvage value Rs.8,000. What will be the amount of depreciation in the second year as according to written down value method. Charge depreciation @ 10% per annum. Book value of a machine is Rs. 5,83,200 as on 31March, 2016. The machine was purchased on 1st April, 2013. Depreciation is charged @ 10% written down value method. What is the original cost of machine.   Pokemon and Brothers purchased a Machinery for Rs.3,00,000 on April 01,2014 and spent Rs.40,000 for its installation. The salvage value of the machine after its useful life for 5 years, is estimated to be Rs.5,000. Record journal entries for the year 2014-2015 and draw up Machine Account and Depreciation Account for first 2 years given that the depreciation is charged using straight line method if the books of accounts close on March 31 every year and the firm charges depreciation to the asset account.   On January 01, 2014 Ash Computer Co. purchased 3 Computer for Rs.25,000 each. Depreciation has been provided at the rate of 10% p.a. under Straight Line Method and accumulated in provision for depreciation account. On January 01, 2015 one Computer was sold for Rs.12,000. On July 01, 2016 another Computer (purchased for Rs.25,000 on Jan 01, 2014) was sold for Rs.14,000. A new Computer costing Rs.35,000 was purchased on October 01, 2016. You are required to prepare Computer Account, Provision for Depreciation Account and Computer Disposal Account for the years ended on December 2014, 2015 and 2016 assuming that the firm closes its accounts in December every year. In the Books of Harish Enterprise as on March 31,2015:   Plant gross value Rs.7,00,000 Provision for Depreciation Rs.1,00,000     A plant purchased for Rs.2,00,000 on November 01,2013 having accumulated depreciation amounted to Rs.80,000 was sold on April 01,2015 for Rs.40,000. Show the Plant A/c and Plant Disposal A/c for the year ended 31st March, 2016. Kushal and Company purchased furniture for Rs.50,000 on October 01, 2013. New furniture was purchased on April 01, 2015 for 30,000. Depreciation is charged at 10% p.a. under Fixed Installation Method on March 31 every year. Show necessary journal entries for the years 2013-2014, 2014-2015 and 2015-2016 if Depreciation Account is not maintained. Queries asked on Sunday & after 7pm from Monday to Saturday will be answered after 12pm the next working day. Kindly Sign up for a personalised experience Ask Study Doubts Sample Papers Past Year Papers Textbook Solutions Sign Up - My Board -CBSEICSEIIT JEENEETJEE FoundationNEET FoundationMaharashtraGujaratGoaTripuraNagalandMeghalayaMizoram - My Class - Verify your number to create your account Have an account? Sign In Verify mobile number Enter the OTP sent to your number Change Did’t recieve OTP?Resend OTP Set Password Sign In Reset Password Sign up with different email address/mobile number Sign Up Sign In Kindly Sign up for a personalized experience Ask study doubts Sample papers Past Year Papers Textbook solutions Sign In Kindly Sign up for a personalized experience Use OTPForgot Password? OR Log in with social account New to TopperLearning? Join Us Verify mobile number Enter the OTP sent to your number Change Did’t recieve OTP?Resend OTP × Okay Kindly login / signup to continue Login Sign-up Kindly subscribe to continue View Plans Kindly login / signup to continue Login Sign-up Kindly subscribe to continue View Plans Add to favourite Share Remove