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. 

Asked by Topperlearning User | 4th Aug, 2016, 01:26: PM

Expert Answer:

 

 

 

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