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On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On
1
st July, 2020 this bus was damaged due to fire and was completely destroyed and
` 6,00,000 were received by a cheque from the Insurance Company in full settlement on
1
st October, 2020. On 1st July, 2020 another Bus was purchased by the company for
` 10,00,000.
The Company charges Depreciation @ 20% per annum under the WDV Method.
Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or
loss on the destroyed Bus?
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On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` ...
Calculation of Depreciation and Gain/Loss on Bus

Depreciation Calculation:
- Cost of the bus purchased on 1st January, 2019: `8,00,000
- Depreciation rate: 20% per annum
- Depreciation for the year ended 31st March, 2021 = Cost of Bus * Depreciation Rate
- Depreciation for the year ended 31st March, 2021 = `8,00,000 * 20% = `1,60,000

Gain/Loss Calculation:
- Cost of the destroyed bus: `8,00,000
- Insurance received: `6,00,000
- Book value of the destroyed bus on 1st July, 2020 = Cost of Bus - Depreciation till 1st July, 2020
- Depreciation till 1st July, 2020 = Cost of Bus * Depreciation Rate * (Time period/12)
- Depreciation till 1st July, 2020 = `8,00,000 * 20% * (18/12) = `2,40,000
- Book value of the destroyed bus on 1st July, 2020 = `8,00,000 - `2,40,000 = `5,60,000
- Gain/Loss on destroyed bus = Insurance received - Book value of destroyed bus
- Gain/Loss on destroyed bus = `6,00,000 - `5,60,000 = `40,000
Therefore, the amount of depreciation for the year ended 31st March, 2021 is `1,60,000 and the company incurred a loss of `40,000 on the destroyed bus.
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On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.

On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs. 1,00,000 and a further sum of R.s 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs. 65,000. On 02.01.2003, the first plant was totally destroyed and the amount of Rs. 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs. 75,000 and a further sum of Rs. 7,500 was spent for repairs and Rs. 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year. In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Depreciation over / under charged = __________.

On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs. 1,00,000 and a further sum of R.s 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs. 65,000. On 02.01.2003, the first plant was totally destroyed and the amount of Rs. 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs. 75,000 and a further sum of Rs. 7,500 was spent for repairs and Rs. 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year. In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Closing balance in Provision for Depreciation A/c = ___________

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On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus?
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On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus?.
Solutions for On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? defined & explained in the simplest way possible. Besides giving the explanation of On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus?, a detailed solution for On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? has been provided alongside types of On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? theory, EduRev gives you an ample number of questions to practice On 1st January, 2019 Kohinoor Transport Company purchased a Bus for ` 8,00,000. On 1 st July, 2020 this bus was damaged due to fire and was completely destroyed and ` 6,00,000 were received by a cheque from the Insurance Company in full settlement on 1 st October, 2020. On 1st July, 2020 another Bus was purchased by the company for ` 10,00,000. The Company charges Depreciation @ 20% per annum under the WDV Method. Calculate the amount of depreciation for the year ended 31st March, 2021 and gain or loss on the destroyed Bus? tests, examples and also practice CA Foundation tests.
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