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. Q.a. Give the truck account and Depreciation account from 2011 to 2014. Q. b. Do you believe that company is using the good method of Depreciation? Can you suggest some positive points of the method used by Juneja Transport?
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.
year. The books are closed every year on March 31.
Q.a. Give the truck account and Depreciation account from 2011 to 2014.
Q. b. Do you believe that company is using the good method of Depreciation? Can
you suggest some positive points of the method used by Juneja Transport?
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