M/s. Deepak Transport Company purchased10trucks @50,00,000 each on 1 st October, 2020 . On 1 st January, 2023, one of the trucks is involved in an…

Truck A/c Date Particulars Amount Date Particulars Amount 01.04.22 To balance b/d 3,50,00,000 01.01.23 By bank A/c 35,00,000 01.01.23 To Profit & Loss A/c 7,50,000 01.01.23 By Depreciation on lost assets 7,50,000 To Profit on settlement of Truck (W. Note 1) 01.01.23 To Bank A/c 60,00,000 31.03.23 By Depreciation A/c (W Note 3) 93,00,000 31.03.23 By balance c/d 2,82,00,000 4,17,50,000 4,17,50,000 01.04.23 To balance b/d 2,82,00,000 31.03.24 By Depreciation A/c (W Note 3) 1,02,00,000 31.03.24 By balance c/d 1,80,00,000 2,82,00,000 2,82,00,000 Working Note: 1. Profit on settlement of truck Particulars ₹ Original cost as on 1.10.2020 50,00,000 Less: Depreciation for2020 -21 (6 months) 5,00,000 45,00,000 Less: Depreciation for2021-22 10,00,000 35,00,000 Less: Depreciation for2022-23 (9 months) 7,50,000 27,50,000 Less: Amount received from Insurance company 35,00,000 Profit on settlement of truck 7,50,000 2. Calculation of WDV of10trucks as on 01.04.2022 Amount WDV of1truck as on 31.3.2022 (Refer W.N - 1) 35,00,000 WDV of10trucks as on 01.04.22 3,50,00,000 3. Calculation for Depreciation for2022-23 and2023-24 Amount Depreciation for2022-23 On 9 trucks (₹ 50,00,000 x 9 x 20%) 90,00,000 On new truck (₹ 60,00,000 x 1 x 20% x 3/12) 3,00,000 93,00,000 Depreciation for2023-24 On 9 trucks (₹ 50,00,000 x 9 x 20%) 90,00,000 On new truck (₹ 60,00,000 x 1 x 20%) 12,00,000 1,02,00,000