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Question 22 Chapter 11 – Unimax Publications of Class 11
On January 01,2017 Khosla Transport Co. purchased five trucks for ₹ 20,000 each. Depreciation has provided at the rate of 10% p.a. using straight line method and accumulated in provision for depreciation account. On January 1,2018 one truck was sold for ₹ 15,000. On July 1,2019, another truck (purchased for ₹ 20,000 on January 1,2017 was sold for ₹ 18,000. A new truck costing ₹ 30,000 was purchased on October 1,2019. You are required to prepare truck account, provision for depreciation account and truck disposal account for the years ended on December 2017,2018 and 2019 assuming that the firm closes its accounts in December every year.)
The solution of Question 22 Chapter 11 – Unimax Publications of Class 11
| Dr. | Truck A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/01/17 | To Bank A/c | 1,00,000 | 31/12/17 | By Balance c/d | 1,00,000 | ||
| 1,00,000 | 1,00,000 | ||||||
| 01/01/18 | To Balance b/d | 1,00,000 | 01/01/18 | By Truck disposal A/c | 20,000 | ||
| 31/12/18 | By Balance C/d | 80,000 | |||||
| 1,00,000 | 1,00,000 | ||||||
| 01/01/19 | To Balance b/d | 80,000 | 01/01/19 | By Truck disposal A/c | 20,000 | ||
| 01/10/19 | To Bank A/c | 30,000 | 31/12/19 | By Balance C/d | 90,000 | ||
| 1,10,000 | 1,10,000 | ||||||
| Dr. | Truck A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/01/17 | To Balance c/d | 10,000 | 31/12/17 | By Depreciation A/c | 10,000 | ||
| 10,000 | 10,000 | ||||||
| 01/01/18 | To Truck disposal A/c | 2,000 | 01/01/18 | By Balance b/d | 10,000 | ||
| 31/12/18 | To Balance c/d | 16,000 | 31/12/18 | By Depreciation A/c | 8,000 | ||
| 18,000 | 18,000 | ||||||
| 01/07/19 | To Truck disposal A/c | 5,000 | 01/01/19 | By Balance b/d | 16,000 | ||
| 01/12/19 | To Balance c/d | 18,750 | 31/12/19 | By Deprecation A/c | 7,750 | ||
| 23,750 | 23,750 | ||||||
| Dr. | Machine A/c | Cr. | |||||
| Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount |
| 01/01/18 | To Truck A/c | 20,000 | 01/01/18 | By Bank A/c | 15,000 | ||
| 01/01/18 | By Profit & Loss A/c | 3,000 | |||||
| 01/01/18 | By Provision for deprecation A/c | 2,000 | |||||
| 20,000 | 20,000 | ||||||
| 01/07/19 | To Truck A/c | 20,000 | 01/07/19 | By Provision for deprecation A/c | 5,000 | ||
| 01/07/19 | To Profit & Loss A/c | 3,000 | 01/07/19 | By Bank A/c | 18,000 | ||
| 23,000 | 23,000 | ||||||
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