Question

On 1st October, 2012 a truck was purchased for Rs. 8,00,000 by Laxmi Transport Ltd. Depreciation was provided at 15 % per annum on the diminishing balance basis on this truck. On 31st December, 2016 this truck was sold for Rs. 5,00,000. Accounts are closed on 31st March, every year. Prepare a truck account for the 4 years.

Answer 1

$\begin{array}{cccccccc}\text{Dr}& & & & \text{Truck Account}& & & \text{Cr}\end{array}$

$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ 2012& & & & 2013& & & \\ \text{Oct 1}& \text{Bank A/c}& & 8,00,000& \text{Mar 31}& \text{Depreciation A/c}& & 60,000\\ & & & & & (8,00,000\times \frac{15}{100}\times \frac{6}{12})& & \\ & & & & \text{Mar 31}& \text{Balance c/d}& & 7,40,000\\ & & & \overline{\underset{–}{\underset{–}{8,00,000}}}& & & & \overline{\underset{–}{\underset{–}{8,00,000}}}\\ 2013& & & & 2014& & & \\ \text{Apr 1}& \text{Balance b/d}& & 7,40,000& \text{Mar 31}& \text{Depreciation A/c}& & 1,11,000\\ & & & & & (7,40,000\times \frac{15}{100})& & \\ & & & & \text{Mar 31}& \text{Balance c/d}& & 6,29,000\\ & & & \overline{\underset{–}{\underset{–}{7,40,000}}}& & & & \overline{\underset{–}{\underset{–}{7,40,000}}}\\ 2014& & & & 2015& & & \\ \text{Apr 1}& \text{Balance b/d}& & 6,29,000& \text{Mar 31}& \text{Depreciation A/c}& & 94,350\\ & & & & & (6,29,000\times \frac{15}{100})& & \\ & & & & & \text{Balance c/d}& & 5,34,650\\ & & & \overline{\underset{–}{\underset{–}{6,29,000}}}& & & & \overline{\underset{–}{\underset{–}{6,29,000}}}\\ 2015& & & & 2016& & & \\ \text{Apr 1}& \text{Balance b/d}& & 5,34,650& \text{Dec 31}& \text{Depreciation A/c}& & 60,148\\ & & & & & (5,34,650\times \frac{15}{100}\times \frac{9}{12})& & \\ \text{Dec 31}& \text{Profit and Loss A/c}& & 25,498& & \text{Bank A/c (Sale proceed)}& & 5,00,000\\ & \text{(Profit)}& & & & & & \\ & & & \overline{\underset{–}{\underset{–}{5,60,148}}}& & & & \overline{\underset{–}{\underset{–}{5,60,148}}}\end{array}$

$\begin{array}{cc}\text{Calculation of Profit/Loss on sale}& \\ \text{Book Value as on 1st April, 2015}& 5,34,650\\ \text{(-) Depreciation}& \underset{–}{60,148}\\ & 4,74,502\\ \text{(-) Sale proceeds}& \underset{–}{5,00,000}\\ \text{Profit on Sale}& \underset{–}{25,498}\end{array}$