Question

On October 1, 2000, 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 December 31, 2003, this truck was sold for Rs 5,00,000. Accounts are closed on 31st March every year. Prepare a Truck account for the four years.

Answer 1

Dr Truck Account Cr
$\begin{array}{cccccccc}\text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}& \text{Date}& \text{Particulars}& \text{JF}& \text{Amt. (Rs)}\\ 2000& & & & 2001& & & \\ \text{Oct 1}& \text{Bank A/c}& & 8,00,000& \text{Mar 31}& \text{Depreciation}& & \\ & & & & & \text{A/c}(@15\%\text{for}& & \\ & & & & & \text{6 months)}& & 60,000\\ & & & & \text{Dec 31}& \text{Balance c/d}& & 7,40,000\\ & & & \underset{–}{\overline{8,00,000}}& & & & \underset{–}{\overline{8,00,000}}\\ 2001& & & & 2002& & & \\ \text{Apr 1}& \text{Balance b/d}& & 7,40,000& \text{Mar 31}& \text{Depreciation}& & \\ & & & & & \text{A/c}(@15\%\text{on}& & \\ & & & & & 7,40,000)& & 1,11,000\\ & & & & \text{Mar 31}& \text{Balance c/d}& & 6,29,000\\ & & & \underset{–}{\overline{7,40,000}}& & & & \underset{–}{\overline{7,40,000}}\\ 2002& & & & 2003& & & \\ \text{Apr 1}& \text{Balance b/d}& & 6,29,000& \text{Mar 31}& \text{Depreciation}& & \\ & & & & & \text{A/c}(@15\%\text{on}& & \\ & & & & & 6,29,000)& & 94,350\\ & & & & \text{Mar 31}& \text{Balance c/d}& & 5,34,650\\ & & & \underset{–}{\overline{6,29,000}}& & & & \underset{–}{\overline{6,29,000}}\\ 2003& & & & 2004& & & \\ \text{Apr 1}& \text{Balance b/d}& & 5,34,650& \text{Dec 31}& \text{Depreciation}& & \\ \text{Dec 31}& \text{Profit}\&& & & & \text{A/c}(@15\%\text{on}& & \\ & \text{Loss A/c (Profit)}& & 25,498& & 5,34,650\text{for}9& & \\ & & & & & \text{months)}& & 60,148\\ & & & & \text{Dec 31}& \text{Bank A/c}& & \\ & & & & & \text{(Sales Proceed)}& & 5,00,000\\ & & & \underset{–}{\overline{5,60,148}}& & & & \underset{–}{\overline{5,60,148}}\end{array}$