M/s. Alankrit Transport Company purchased10Buses @50,00,000 each on 1st October, 2021. On 1st January, 2024, one of the Buses is involved in an…

Buses A/c Date Particulars Amount (₹) Date Particulars Amount (₹) 01.04.23 To balance b/d 3,50,00,000 01.01.24 By bank A/c 35,00,000 01.01.24 To Profit & Loss A/c (To Profit on settlement of Truck (W. Note 1)) 7,50,000 01.01.24 By Depreciation on lost assets 7,50,000 01.01.24 To Bank A/c 60,00,000 31.03.24 By Depreciation A/c (W Note 3) 93,00,000 31.03.24 By balance c/d 2,82,00,000 4,17,50,000 4,17,50,000 01.04.24 To balance b/d 2,82,00,000 31.03.25 By Depreciation A/c (W Note 3) 1,02,00,000 31.03.25 By balance c/d 1,80,00,000 2,82,00,000 2,82,00,000 Working Note: 1. Profit on settlement of Bus Particulars Amount (₹) Original cost as on 1.10.2021 50,00,000 Less: Depreciation for2021 -22 (6 months) 5,00,000 45,00,000 Less: Depreciation for2022-23 10,00,000 35,00,000 Less: Depreciation for2023-24 (9 months) 7,50,000 27,50,000 Less: Amount received from Insurance company 35,00,000 Profit on settlement of Bus 7,50,000 2. Calculation of WDV of10Buses as on 01.04.2023 Particulars Amount (₹) WDV of1truck as on 31.3.2023 (Refer W.N - 1) 35,00,000 WDV of10Buses as on 01.04.23 3,50,00,000 3. Calculation for Depreciation for2023-24 and2024-25 Particulars Amount (₹) Depreciation for2023-24 On 9 Buses (₹ 50,00,000 x 9 x 20%) 90,00,000 On new Bus (₹ 60,00,000 x 1 x 20% x 3/12) 3,00,000 93,00,000 Depreciation for2024-25 On 9 Bus (₹ 50,00,000 x 9 x 20%) 90,00,000 On new Bus (₹ 60,00,000 x 1 x 20%) 12,00,000 1,02,00,000