Written Down Value Method

On 1st January, 2017, the Jaipur Golden Transport Compnay purchased a truck for Rs 8,00,000. On 1st July, 2018, this truck was involved in an accident and was destroyed and Rs 6,00,000 were received by cheque from the Insurance Company in full settlement on 1st October, 2018. On 1st July, 2018, another truck was purchased by the company for Rs 10,00,000 plus CGST and SGST "@ "6% each. The company charges depreciation "@ "20% p.a. following Written Down Value Method. Prepare Truck Account and Depreciation Account for 2017 to 2019 when books are closed on 31st March every year.

Dowra Bros. purchased on 1st April, 2015 a second-hand machinery for Rs 36,000 and spent Rs 4,000 on its installation. On 1st October in the same year, another machinery costing Rs 20,000 was purchased. On 1st October, 2017, machinery bought on 1st April , 2015 was sold off for Rs 12,000 and a fresh machine was purchased for Rs 64,000 on the same date. Depreciation is provided annually on 31st March "@ " 10% p.a. on the Written Down Value Method. Show Machinery Account for 3 years ending 31st March, 2018.

Mahesh and auresh are partners and they admit Naresh into partnership. They agreed to value goodwill at three years' purchase on Weighted Average Profit Method taking profits for the last five years. They assigned weights from 1 to 5 beginning from the earliest year adn onwards. The profits for the last five years were as follows: Scrutiny of books of account revealed the following: (i) A second-hand machine was purchased for Rs. 5,00,000 on 1st July, 2017 and Rs. 1,00,000 were spent to make it operational. Rs. 1,00,000 were wrongly debited to Repairs Account. Machinery is depreciated @ 20% p.a. on Written Down Value Method. (ii) Closing Stock as on 31st March, 2018 was undervalued by Rs. 50,000. (iii) Remuneration to partners was to be considered as charge against profit and remuneration of Rs. 20,000 p.a. for each partner was considered appropriate. Calculate the value of goodwill.

In Anil's Ledger, book value of a machine as on 1st April, 2018 is Rs 2,80,000. Depreciation is charged "@ "15% p.a. by Written Down Value Method. The machine is under in an annual repairs and maintenance contract with Mahesh, who charges Rs 5,000 per quarter. A new machine was bought and the cheque issued for Rs 3,90,000 and the cash paid Rs 10,000 to Brahm for its immediate installation and subsequent use on 1st July, 2018. The annual maintenance contract of the new machine bought was to be signed after the one year gurantee period was over. Show the Machinery Account, as it would appear in the Ledger for the year ended 31st March, 2019.

Write down some methods of prevention of soil erosion.

Mars Ltd has plant and Machinery whose written down value on 1st April, 2018 was ₹ 9,60,000 and on 31st March, 2019 was ₹ 10,50,000. Depreciation for the years was ₹35,000. In the beginig of the years , a part of plant was sold for ₹ 45,000 which had a written down value of ₹ 30,000. Calculate Cash Flow from Investing Activites.

Global Ltd has Machinery written down value of which on 1st April, 2018 was ₹8,60,000 and on 31st March 2019 was ₹ 9,50,000. Deprection for the year was ₹ 40,000 . In the beginning of the year, an item of machineey was sold for ₹25,000 which had a written down value of ₹ 20,000 .Calculate Cash Flow from Investing Activities.