Question

A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 1, 2001, is Rs. 40,00,000. On October 1, 2001, it sold one of its cranes whose value was Rs. 5,00,000 on April 1, 2001 at a 10 % profit. On the same day. it purchased 2 cranes for Rs. 4,50,000 each.

Prepare Cranes account. It closes the books on December 31 and provides for depreciation on $10\%$ written down value.

Answer 1

$\begin{array}{c}\text{Dr Cranes Account Cr}\end{array}$

$\begin{array}{ccccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \\ 2004& & & & 2004& & & & \\ \text{Apr 1}& \text{Balance b/d}& & \text{40,00,000}& \text{Oct 1}& \text{Depreciation}& & & \\ & \text{Profit and}& & & & \text{A/c (at 10 \% on}& & & \\ & \text{Loss A/c (Profit)}& & 47,500& & \text{5,00,000 for six}& & & \\ \text{Oct 1}& \text{Bank A/c}& & & & \text{month)}& & \text{25,000}& \\ & (4,50,000\times 2)& & \text{9,00,000}& \text{Oct 1}& \text{Bank A/c}& & & \\ & & & & & [\text{4,75,000}\times \frac{110}{100}]& & 5,22,500& \\ & & & & \text{Dec 31}& \text{Depreciation}& & & \\ & & & & & \text{A/c}& & & \\ & & & & & \text{(at 10 \% on}& & & \\ & & & & & \text{35,00,000}\text{for}9& & & \\ & & & & & \text{months)}& & 2,62,500& \\ & & & & & \text{(at10 \% on}& & & \\ & & & & & \text{9,00,000}\text{for}3& & & \\ & & & & & \text{months)}& & 22,500& \\ & & & & \text{Dec 31}& \text{Balance c/d}& & \text{41,15,000}& \\ & & & \overline{\underset{–}{49,47,500}}& & & & \overline{\underset{–}{49,47,500}}& \end{array}$