On October 01, 2011 Juneja Transport Company purchased 2 Trucks for Rs 10,00,000 each. On July 01, 2013, One Truck was involved in an accident and was completely destroyed and Rs 6,00,000 were received from the insurance company in full settlement. On December 31, 2013 another truck was involved in an accident and destroyed partially, which was not insured. It was sold off for Rs 1,50,000. On January 31, 2014 company purchased a fresh truck for Rs 12,00,000. Depreciation is to be provided at 10% p.a. on the written down value every year. The books are closed every year on March 31. Give the truck account from 2011 to 2014.
On October 01, 2011 Juneja Transport Company purchased 2 Trucks for Rs 10,00,000 each. On July 01, 2013, One Truck was involved in an accident and was completely destroyed and Rs 6,00,000 were received from the insurance company in full settlement. On December 31, 2013 another truck was involved in an accident and destroyed partially, which was not insured. It was sold off for Rs 1,50,000. On January 31, 2014 company purchased a fresh truck for Rs 12,00,000. Depreciation is to be provided at 10% p.a. on the written down value every year. The books are closed every year on March 31. Give the truck account from 2011 to 2014.
Books of Juneja Transport Company
Truck Account
Dr.
Cr.
Date
Particulars
J.F.
Amount
Rs
Date
Particulars
J.F.
Amount
Rs
2011
2012
Oct.01
Bank
20,00,000
Mar.31
Depreciation
1,00,000
Mar.31
Balance c/d
19,00,000
20,00,000
20,00,000
2012
2013
Apr.01
Balance b/d
19,00,000
Mar.31
Depreciation
1,90,000
Mar.31
Balance c/d
17,10,000
19,00,000
19,00,000
2013
2013
Apr.01
Balance b/d
17,10,000
Jul.01
Depreciation (3 Month on one Truck)
21,375
Jul.01
Bank (Insurance Claim)
6,00,000
2014
Jul.01
Profit and Loss (loss)
2,33,625
Jan.31
Bank
12,00,000
Dec.31
Depreciation (9 Month on II Truck)
64,125
Dec.31
Bank
1,50,000
Dec.31
Profit and Loss (Loss)
6,40,875
2014
Mar.31
Depreciation (2 Months)
20,000
Mar.31
Balance c/d
11,80,000
29,10,000
29,10,000
Note: As per solution, loss on truck one is as Rs 2,33,625; however, as per NCERT book, loss is of Rs 3,26,250.
Truck – 1
Opening Balance
–
Depreciation
=
Closing Balance
Oct.01, 2011
10,00,000
–
50,000 (6 Months)
=
9,50,000
Apr.01, 2012
9,50,000
–
95,000
=
8,55,000
Apr.01, 2013
8,55,000
–
21,375 (3 Months)
=
8,33,625
Value on July 01, 2013
=
8,33,625
Insurance Claim
=
– 6,00,000
Loss on Truck – 1
=
Rs 2,33,625
Truck – 2
Opening Balance
–
Depreciation
=
Closing Balance
Oct.01, 2012
10,00,000
–
50,000 (6 Months)
=
9,50,000
Apr.01, 2012
9,50,000
–
95,000
=
8,55,000
Apr.01, 2013
8,55,000
–
64,125 (9 Months)
=
7,90,875
Value on Dec.31, 2013
=
7,90,875
Sale of Truck
=
– 1,50,000
Loss on Truck – 2
=
Rs 6,40,875
|
Books of Juneja Transport Company Truck Account |
|||||||
|
Dr. |
|
|
|
|
|
|
Cr. |
|
Date |
Particulars |
J.F. |
Amount Rs |
Date |
Particulars |
J.F. |
Amount Rs |
|
2011 |
|
|
|
2012 |
|
|
|
|
Oct.01 |
Bank |
|
20,00,000 |
Mar.31 |
Depreciation |
|
1,00,000 |
|
|
|
|
|
Mar.31 |
Balance c/d |
|
19,00,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
20,00,000 |
|
|
|
20,00,000 |
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
|
2013 |
|
|
|
|
Apr.01 |
Balance b/d |
|
19,00,000 |
Mar.31 |
Depreciation |
|
1,90,000 |
|
|
|
|
|
Mar.31 |
Balance c/d |
|
17,10,000 |
|
|
|
|
19,00,000 |
|
|
|
19,00,000 |
|
|
|
|
|
|
|
|
|
|
2013 |
|
|
|
2013 |
|
|
|
|
Apr.01 |
Balance b/d |
|
17,10,000 |
Jul.01 |
Depreciation (3 Month on one Truck) |
|
21,375 |
|
|
|
|
|
Jul.01 |
Bank (Insurance Claim) |
|
6,00,000 |
|
2014 |
|
|
|
Jul.01 |
Profit and Loss (loss) |
|
2,33,625 |
|
Jan.31 |
Bank |
|
12,00,000 |
|
|
|
|
|
|
|
|
|
Dec.31 |
Depreciation (9 Month on II Truck) |
|
64,125 |
|
|
|
|
|
Dec.31 |
Bank |
|
1,50,000 |
|
|
|
|
|
Dec.31 |
Profit and Loss (Loss) |
|
6,40,875 |
|
|
|
|
|
2014 |
|
|
|
|
|
|
|
|
Mar.31 |
Depreciation (2 Months) |
|
20,000 |
|
|
|
|
|
Mar.31 |
Balance c/d |
|
11,80,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
29,10,000 |
|
|
|
29,10,000 |
|
|
|
|
|
|
|
|
|
Note: As per solution, loss on truck one is as Rs 2,33,625; however, as per NCERT book, loss is of Rs 3,26,250.
Truck – 1
|
|
Opening Balance |
– |
Depreciation |
= |
Closing Balance |
|
Oct.01, 2011 |
10,00,000 |
– |
50,000 (6 Months) |
= |
9,50,000 |
|
Apr.01, 2012 |
9,50,000 |
– |
95,000 |
= |
8,55,000 |
|
Apr.01, 2013 |
8,55,000 |
– |
21,375 (3 Months) |
= |
8,33,625 |
|
Value on July 01, 2013 |
= |
8,33,625 |
|
Insurance Claim |
= |
– 6,00,000 |
|
Loss on Truck – 1 |
= |
Rs 2,33,625 |
Truck – 2
|
|
Opening Balance |
– |
Depreciation |
= |
Closing Balance |
|
Oct.01, 2012 |
10,00,000 |
– |
50,000 (6 Months) |
= |
9,50,000 |
|
Apr.01, 2012 |
9,50,000 |
– |
95,000 |
= |
8,55,000 |
|
Apr.01, 2013 |
8,55,000 |
– |
64,125 (9 Months) |
= |
7,90,875 |
|
Value on Dec.31, 2013 |
= |
7,90,875 |
|
Sale of Truck |
= |
– 1,50,000 |
|
Loss on Truck – 2 |
= |
Rs 6,40,875 |
