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Phone first January 2019 Kohinoor Transport Company purchased a bus for 8 lakh on 1st July 2020 to this was damaged due to fire and was completely destroyed and 600000 were received by a cheque from the insurance company in full settlement on 1st October 2020 on the first July 2020 another bus purchased by the company for 10 lakh the company charges differentiation at 20% from and I'm under the blue DV method calculate the amount of depreciation for the year and it 31st March 20 21 and gain or loss on the destroyed bus?
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Phone first January 2019 Kohinoor Transport Company purchased a bus fo...
- Depreciation Calculation:
Given:
- Cost of the bus purchased on 1st July 2020 = Rs. 10,00,000
- Depreciation rate = 20%
- Under the WDV method
Depreciation for the year ending 31st March 2021 can be calculated as follows:
Depreciation = Cost of the bus * Depreciation rate
Depreciation = Rs. 10,00,000 * 20% = Rs. 2,00,000
- Gain or Loss on Destroyed Bus:
Given:
- Cost of the bus purchased on 1st January 2019 = Rs. 8,00,000
- Insurance received for the damaged bus = Rs. 6,00,000
The carrying amount of the bus on the date of destruction (1st October 2020) is:
Carrying amount = Cost of the bus - Accumulated depreciation
Accumulated depreciation = Depreciation for the period from 1st January 2019 to 1st October 2020
Accumulated depreciation = (Rs. 8,00,000 * 20%) * (21/36) = Rs. 2,33,333.33
Carrying amount = Rs. 8,00,000 - Rs. 2,33,333.33 = Rs. 5,66,666.67
Therefore, the company incurred a loss of:
Loss = Carrying amount - Insurance received
Loss = Rs. 5,66,666.67 - Rs. 6,00,000 = Rs. 33,333.33
Hence, the company incurred a loss of Rs. 33,333.33 on the destroyed bus.
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Phone first January 2019 Kohinoor Transport Company purchased a bus for 8 lakh on 1st July 2020 to this was damaged due to fire and was completely destroyed and 600000 were received by a cheque from the insurance company in full settlement on 1st October 2020 on the first July 2020 another bus purchased by the company for 10 lakh the company charges differentiation at 20% from and I'm under the blue DV method calculate the amount of depreciation for the year and it 31st March 20 21 and gain or loss on the destroyed bus?
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Phone first January 2019 Kohinoor Transport Company purchased a bus for 8 lakh on 1st July 2020 to this was damaged due to fire and was completely destroyed and 600000 were received by a cheque from the insurance company in full settlement on 1st October 2020 on the first July 2020 another bus purchased by the company for 10 lakh the company charges differentiation at 20% from and I'm under the blue DV method calculate the amount of depreciation for the year and it 31st March 20 21 and gain or loss on the destroyed bus? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Phone first January 2019 Kohinoor Transport Company purchased a bus for 8 lakh on 1st July 2020 to this was damaged due to fire and was completely destroyed and 600000 were received by a cheque from the insurance company in full settlement on 1st October 2020 on the first July 2020 another bus purchased by the company for 10 lakh the company charges differentiation at 20% from and I'm under the blue DV method calculate the amount of depreciation for the year and it 31st March 20 21 and gain or loss on the destroyed bus? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Phone first January 2019 Kohinoor Transport Company purchased a bus for 8 lakh on 1st July 2020 to this was damaged due to fire and was completely destroyed and 600000 were received by a cheque from the insurance company in full settlement on 1st October 2020 on the first July 2020 another bus purchased by the company for 10 lakh the company charges differentiation at 20% from and I'm under the blue DV method calculate the amount of depreciation for the year and it 31st March 20 21 and gain or loss on the destroyed bus?.
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