19. On January 01, 2014, a Limited Company purchased machinery for ₹20,00,000. Depreciation is provided @15% p.a. on diminishing balance method. On March 01, 2016, one fourth of machinery was damaged by fire and ₹40,000 were received from the insurance company in full settlement. On September 01, 2016 another machinery was purchased by the company … Read more
18. Shri Krishan Manufacturing Company purchased 10 machines for ₹75,000 each on July 01, 2014. On October 01, 2016, one of the machines got destroyed by fire and an insurance claim of ₹45,000 was admitted by the company. On the same date another machine is purchased by the company for ₹1,25,000. The company writes off … Read more
17. A Noida based Construction Company owns 5 cranes and the value of this asset in its books on April 01, 2017 is ₹40,00,000. On October 01, 2017 it sold one of its cranes whose value was ₹5,00,000 on April 01, 2017 at a 10% profit. On the same day it purchased 2 cranes for … Read more
16. On October 01, 2011 Juneja Transport Company purchased 2 Trucks for ₹ 10,00,000 each. On July 01, 2013, One Truck was involved in an accident and was completely destroyed and ₹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, … Read more
15. On January 01, 2011, Satkar Transport Ltd., purchased 3 buses for ₹10,00,000 each. On July 01, 2013, one bus was involved in an accident and was completely destroyed and ₹7,00,000 were received from the Insurance Company in full settlement. Depreciation is written off @15% p.a. on diminishing balance method. Prepare bus account from 2011 … Read more
14. Kapil Ltd. purchased a machinery on July 01, 2011 for ₹3,50,000. It purchased two additional machines, on April 01, 2012 costing ₹1,50,000 and on October 01, 2012 costing ₹1,00,000. Depreciation is provided @10% p.a. on straight line basis. On January 01, 2013, first machinery become useless due to technical changes. This machinery was sold … Read more
13. On October 01, 2010, a Truck was purchased for ₹8,00,000 by Laxmi Transport Ltd. Depreciation was provided at 15% p.a. on the diminishing balance basis on this truck. On December 31, 2013 this Truck was sold for ₹5,00,000. Accounts are closed on 31st March every year. Prepare a Truck Account for the four years. … Read more
12. On July 01, 2011 Ashwani purchased a machine for ₹2,00,000 on credit. Installation expenses ₹25,000 are paid by cheque. The estimated life is 5 years and its scrap value after 5 years will be ₹20,000. Depreciation is to be charged on straight line basis. Show the journal entry for the year 2011 and prepare … Read more
11. Saraswati Ltd. purchased a machinery costing ₹10,00,000 on January 01, 2011. A new machinery was purchased on 01 May, 2012 for ₹15,00,000 and another on July 01, 2014 for ₹12,00,000. A part of the machinery which originally cost ₹2,00,000 in 2011 was sold for ₹75,000 on April 30, 2014. Show the machinery account, provision … Read more
10. Carriage Transport Company purchased 5 trucks at the cost of ₹2,00,000 each on April 01, 2011. The company writes off depreciation @ 20% p.a. on original cost and closes its books on December 31, every year. On October 01, 2013, one of the trucks is involved in an accident and is completely destroyed. Insurance … Read more