Question

 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 to 2014. Books are closed on December 31 every year.

Answer 1

Dr.	Books of Satkar Transport Ltd. Bus Account						Cr.
Date	Particulars	J.F.	Amount ₹	Date	Particulars	J.F.	Amount ₹
2011				2011
Jan.01	Bank		30,00,000	Dec.31	Depreciation		4,50,000
				Dec.31	Balance c/d		25,50,000
			30,00,000				30,00,000
2012				2012
Jan.01	Balance b/d		25,50,000	Dec.31	Depreciation		3,82,500
				Dec.31	Balance c/d		21,67,500
			25,50,000				25,50,000
2013				2013
Jan.01	Balance b/d		21,67,500	July.01	Depreciation (6 months)		54,187
July.01	Profit and Loss (Profit)		31,687	July.01	Insurance Co (Insurance claim)		7,00,000
				Dec.31	Depreciation		2,16,750
				Dec.31	Balance c/d		12,28,250
			21,99,187				21,99,187
2014				2014
Jan.01	Balance c/d		12,28,250	Dec.31	Depreciation		1,84,237
				Dec.31	Balance c/d		10,44,013
			12,28,250				12,28,250