Advertisements
Advertisements
प्रश्न
On 1st October 2014, a truck was purchased for ₹ 8,00,000 by Laxmi Transports Ltd. Depreciation was provided @ 15% p.a. under diminishing balance method. On 31st March 2017, the above truck was sold for ₹ 5,00,000. Accounts are closed on 31st March every year. Find out the profit or loss made on the sale of the truck.
Advertisements
उत्तर
Calculation of Profit or loss on sale of the truck:
| Date | Particulars | ₹ |
| 01.10.2014 | A truck purchased | 8,00,000 |
| 31.03.2015 | Less: Depreciation @ 15% for 6 months | 60,000 |
| 01.04.2015 | Book value | 7,40,000 |
| 31.03.2016 | Less: Depreciation @ 15% | 1,11,000 |
| 01.04.2016 | Book value | 6,29,000 |
| 31.03.2017 | Less: Depreciation @ 15% | 94,350 |
| 01.04.2017 | Book value | 5,34,650 |
Book value – selling price = Loss
5,34,650 – 5,00,000 = 34,650
∴ Loss on sale of truck = ₹ 34,650
APPEARS IN
संबंधित प्रश्न
Answer in One Sentence only:
What is a ‘Scrap Value’ of an asset?
Answer in One Sentence only:
Which account is debited when expenses are paid on installation of Machinery?
Do you agree or disagree with the following statement:
By charging depreciation on fixed assets ascertainment of true and fair financial position is possible.
Complete the following sentence:
In Fixed Instalment System the amount of depreciation is ______ every year.
Under the written-down value method of depreciation, the amount of depreciation is ______.
Distinguish between straight-line method and written down value method of providing depreciation.
A firm purchased a plant for ₹ 40,000. Erection charges amounted to ₹ 2,000. The effective life of the plant is 5 years. Calculate the amount of depreciation per year under the straight-line method.
Shubhangi Trading Company of Dombivli purchased Machinery for ₹ 86,000 on 1st January 2016 and immediately spent ₹ 4,000 on its fixation and erection. On 1st October 2016 additional Machinery costing ₹ 40,000 was purchased.
On 1st October 2017, the Machinery purchased on 1st January 2016 became obsolete and was sold for ₹ 70,000. On 1st July 2017, a new Machine was also purchased for ₹ 45,000.
Depreciation was provided annually on 31st March at the rate of 12% per annum on the fixed installment method.
Prepare Machinery Account for three years and pass Journal Entries for the Third year i.e. 2017-2018.
On 1st April 2015, Farid of Nasik purchased a Motor Car for ₹ 55,000. The scrap value of the Motor Car was estimated at ₹ 10,000 and its estimated life is 10 years. The Registration charge for the Motor Car was ₹ 5,000.
Show Motor Car Account for first four years, assuming that the books of accounts are closed on 31st March every year.
Which of the following methods charges an equal amount of depreciation every year?
