Q.20. The Sameer Transport Company purchased 10 Trucks at Rs. 90,000 each on 1st April 2011. On 1st October 2013 one of the Trucks was involved in an accident is completely destroyed. Rs. 56,200 was received from the Insurance company in full settlement. On the same date another truck was purchased by the company for  the sum of Rs. 1,00,000 . The company writes  off  20% per annum on the Diminishing Balance Method. The company maintains the calendar year as its financial year. Show Truck Account for four years ending 31st December. 2014.

[Ans. Profit on one Truck Rs. 4,180 ;  Balance of Trucks A/c on 31st Dec. 2014 Rs. 4,28,512]