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Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.?
Most Upvoted Answer
Majha transport company purchased 5 trucks at 50000 each on 1 July 201...
Machinery ac on 1 April 2016 =118500
loss on machinery 2500
depreciation 1 year 37500
2 year 50000
3 year a )7500
b)41500
loss on machinery 2500
depreciation 1 year 37500
2 year 50000
3 year a )7500
b)41500
Community Answer
Majha transport company purchased 5 trucks at 50000 each on 1 July 201...
**Truck Account for 3 years ending 31 March 2015**
**1. Initial Purchase of Trucks**
On 1 July 2012, Majha transport company purchased 5 trucks at a cost of $50,000 each. The total cost of the trucks is $250,000.
**2. Depreciation Calculation**
The company writes off depreciation at a rate of 20% per annum on the original cost of the trucks. The accounting year of the company is the financial year.
Depreciation for each year can be calculated as follows:
- Year 1 (2012-2013): $250,000 * 20% = $50,000
- Year 2 (2013-2014): $250,000 * 20% = $50,000
- Year 3 (2014-2015): $250,000 * 20% = $50,000
**3. Truck Account for 3 years**
| Date | Particulars | Amount ($)| Amount ($)| Amount ($)|
|------------|--------------------------------------|-----------|-----------|-----------|
| 01-Jul-12 | Trucks (Purchase) | 250,000 | | |
| 31-Mar-13 | Depreciation | 50,000 | | |
| 31-Mar-14 | Depreciation | 50,000 | | |
| 01-Jan-15 | Insurance Claim (Accident) | | 22,500 | |
| 01-Jan-15 | New Truck Purchase | | 25,000 | |
| 01-Jan-15 | Overhauling Expenses | | 5,000 | |
| 31-Mar-15 | Depreciation | 50,000 | | |
| 31-Mar-15 | Insurance Claim (Gain) | | | 2,500 |
| 31-Mar-15 | New Truck (Addition) | | | 30,000 |
| 31-Mar-15 | Overhauling Expenses (Addition) | | | 5,000 |
| | |-----------|-----------|-----------|
| | Total | 300,000 | 52,500 | 37,500 |
**Explanation:**
- The initial purchase of 5 trucks on 1 July 2012 is recorded as a debit in the truck account.
- Depreciation is calculated at 20% of the original cost each year and recorded as a debit in the truck account.
- On 1 January 2015, one of the trucks met with an accident and the insurance company paid $22,500 as a settlement. This amount is recorded as a credit in the truck account.
- On the same day, the company purchased a new truck for $25,000 and spent $5,000 on its overhauling. These amounts are recorded as credits in the truck account.
- Depreciation for the year 2014-2015 is calculated and recorded as a debit in the truck account.
- At the end of the accounting year on 31 March 2015, the insurance claim gain of $2,500 is recorded as
**1. Initial Purchase of Trucks**
On 1 July 2012, Majha transport company purchased 5 trucks at a cost of $50,000 each. The total cost of the trucks is $250,000.
**2. Depreciation Calculation**
The company writes off depreciation at a rate of 20% per annum on the original cost of the trucks. The accounting year of the company is the financial year.
Depreciation for each year can be calculated as follows:
- Year 1 (2012-2013): $250,000 * 20% = $50,000
- Year 2 (2013-2014): $250,000 * 20% = $50,000
- Year 3 (2014-2015): $250,000 * 20% = $50,000
**3. Truck Account for 3 years**
| Date | Particulars | Amount ($)| Amount ($)| Amount ($)|
|------------|--------------------------------------|-----------|-----------|-----------|
| 01-Jul-12 | Trucks (Purchase) | 250,000 | | |
| 31-Mar-13 | Depreciation | 50,000 | | |
| 31-Mar-14 | Depreciation | 50,000 | | |
| 01-Jan-15 | Insurance Claim (Accident) | | 22,500 | |
| 01-Jan-15 | New Truck Purchase | | 25,000 | |
| 01-Jan-15 | Overhauling Expenses | | 5,000 | |
| 31-Mar-15 | Depreciation | 50,000 | | |
| 31-Mar-15 | Insurance Claim (Gain) | | | 2,500 |
| 31-Mar-15 | New Truck (Addition) | | | 30,000 |
| 31-Mar-15 | Overhauling Expenses (Addition) | | | 5,000 |
| | |-----------|-----------|-----------|
| | Total | 300,000 | 52,500 | 37,500 |
**Explanation:**
- The initial purchase of 5 trucks on 1 July 2012 is recorded as a debit in the truck account.
- Depreciation is calculated at 20% of the original cost each year and recorded as a debit in the truck account.
- On 1 January 2015, one of the trucks met with an accident and the insurance company paid $22,500 as a settlement. This amount is recorded as a credit in the truck account.
- On the same day, the company purchased a new truck for $25,000 and spent $5,000 on its overhauling. These amounts are recorded as credits in the truck account.
- Depreciation for the year 2014-2015 is calculated and recorded as a debit in the truck account.
- At the end of the accounting year on 31 March 2015, the insurance claim gain of $2,500 is recorded as
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Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.?
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Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.?.
Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.?.
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Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.?, a detailed solution for Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? has been provided alongside types of Majha transport company purchased 5 trucks at 50000 each on 1 July 2012. The company writes off depreciation 20 % p.a. on original cost and observed financial year as its accounting year. On 1st January 2015 one of the truck met with an accident and is completely destroyed. Insurance company paid 22500 in full settlement of the claim. On the same day the company purchased another truck for 25000 and spent 5000 on its overhauling. Prepare truck account for 3 years ending 31 March 2015.? theory, EduRev gives you an
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