Illustration No.

10
 Working Note

1. Calculation Of Depreciation And Profit or Loss on Sale Of Truck

Particular’s Truck 4 Truck (Accident) Truck (New) Total

Depreciation
1St April 2011 800000 200000 -
st
31 Dec 2011 (-) Depn (120000) (30000) 150000
1St Jan 2012 (Balance) 680000 170000
31St Dec 12 (-) Depn (160000) (40000) 200000
1st Jan 2013 ( Balance) 520000 130000 120000
31St Dec 2013 (-) Depn (160000) (3000) (6000) 196000
Balance 360000 100000 114000
(-) Insurance Claim (70000)
Loss on Truck 30000

1st Year

800000*20/100*9/12 = 120000
200000*20/100*9/12= 30000
Total Depn = 150000
2nd Year
800000*20/100 = 160000
200000*20/100 = 40000
Total Depn = 200000

3rd Year
800000*20/100 = 160000
200000*20/100*9/12 = 30000
120000*20/100*3/12 = 6000
Total Depn = 196000
 In The Books Of Carriage Transport Company
Truck A/c
Dr Cr

Date Particular’s j/ Amt. Date Particular’s j/ Amt.

f f
1st Apr 11 To Bank A/c (200000*5) - 1000000 31st Dec 11 By Depreciation A/c - 150000
31st Dec 11 By Balance C/d 850000
( Bal.Fig.)
1000000 1000000

1St Jan 12 To Balance B/d - 850000 31st Dec 12 By Depreciation A/c - 200000
31st Dec 11 By Balance C/d 650000
( Bal.Fig.)
850000 850000

1St Jan 13 To Balance B/d - 650000 1st Oct 13 By Bank A/c - 70000
1st Oct 13 To Bank A/c - 120000 1st Oct 13 By Profit & Loss A/c (Loss) - 30000
(100000+20000)
31st Dec 13 By Depreciation A/c - 196000
31st Dec 11 By Balance C/d 474000
( Bal.Fig.)
770000 770000

1St Jan 14 To Balance B/d - 474000

Depreciation A/c
Dr Cr

Date Particular’s j/f Amt. Date Particular’s j/f Amt.

31st Dec 11 To Truck A/c - 150000 31st Dec 11 By Profit & Loss A/c - 150000
150000 150000

31st Dec 11 To Truck A/c - 200000 31st Dec 11 By Profit & Loss A/c - 200000
200000 200000

31st Dec 11 To truck A/c - 196000 31st Dec 11 By Profit & Loss A/c - 196000
196000 196000
 Illustration No.19
 Working Note

2. Calculation Of Depreciation And Profit or Loss on Sale Of Truck

Particular’s Machinery (3/4) Machinery (1/4) Machinery Total

Depreciation
1st Jan 2014 1500000 500000 -
31st Dec 2014 (-) Depn (225000) (75000) 300000
Balance (1st Jan 2015) 1275000 425000
31st Dec 2015 (-) Depn (191250) (63750) 255000
Balance (1st Jan 2016) 1083750 361250 1500000
31st Dec 2016 (-) Depn (162563) (9031) (2M) (75000) 4M 246594
Book Value 352219
(-) Selling Price (40000)
Loss On Machinery 312219