Question 01:A firm purchased a second-hand truck for Rs. 40,000 on 1st January, 2004 and spent Rs10000 on its?

Question

its overhauling. Depreciation is written off 10% p.a. on reducing balance
method. On 30th April 2007, the truck was sold for Rs. 30,000 being unsuitable. Prepare the Truck Account from 2004 to 2007 assuming that Accounts are closed on 31st December every year.
Question 02:Cash book of Mr. Ali shows an overdrawn balance of Rs. 1,800 but this balance does not agree with the balance of bank statement. On checking following discrepancies were ascertained:
• Cheques amounting to Rs. 700 issued out of which only a cheque of Rs. 200 presented into bank.
• Cheques deposited but not credited by the bank Rs. 400
• Interest on overdrawn Rs.100
• Interest on Government securities collected and credited by the bank Rs. 300
Required: Prepare a Bank Reconciliation Statement

Answer 1

Cost of acquiring the truck and getting it to a state where it can be put to use is $50,000.
1.1.2004 Cost of truck $50,000
2004 depreciation ($5,000)
1.1.2005 Nbv $45,000
2005 depreciation ($4,500)
1.1.2006 Nbv $40,500
2006 depreciation ($4,050)
1.1.2007 Nbv $36,450
Depn for 4 mths ($1,215)
30.4.2007 Nbv $35,235
Sales proceeds $30,000
Loss on sale of truck $5,235


Question 2
Balance per cash book ($1,800) overdraft
add unpresented cheques $500
less deposits in transit ($400)
less interest on overdraft ($100)
add Interest on Government securities $300
Bal. per bank statement ($1,500) overdraft

Answer 2

I'm going for MBA next year.....keep in touch ......u will be of gr8 help