Question No 08 Chapter No 17 – D.K Goal 11 Class

Question No 08 Chapter No 17

08. The following expenses relate to a motor lorry, purchased by a limited company for its business:

1. Bought an lorry for Rs 1,20,000 in an auction and paid Rs 1,500 as freight and cartage
2. Its overhauling charges amounted to Rs 30,000
3. Other accessories were purchased for Rs 18,000
4. Lorry was badly damaged in an accident and its repair cost was Rs 42,600
5. Compensation was paid to person involved in accident Rs 14,500
6. Lorry was sold for Rs 1,25,000
7. Driver’s salary, petrol expenses etc. were Rs 34,720
   Pass the necessary journal entries of the above and prepare a lory A/c

The solution of Question No 08 Chapter No 17: –

In the Books of ………
Date	Particulars		L.F.	Debit	Credit
a	Lorry A/c	Dr.		1,21,500
	To Cash A/c				1,21,500
	(Being lorry purchased from auction)
b	Lorry A/c	Dr.		30,000
	To Cash A/c				30,000
	(Being cash paid for overhauling charges)
c	Lorry A/c	Dr.		18,000
	To Cash A/c				18,000
	(Being accessories for lorry purchased)
d	Repair A/c	Dr.		42,600
	To Cash A/c				42,600
	(Being repaid cost paid for lorry)
e	Compensation for accident A/c	Dr.		14,500
	To Cash A/c				14,500
	(Being compensation for accident paid )
f	Cash A/c	Dr.		1,25,000
	To Lorry A/c				1,25,000
	(Being lorry sold )
g	Diver’s Salary, Petrol Exp. A/c	Dr.		34,720
	To Cash A/c				34,720
	(Being cash paid for diver’s salary, Petrol Exp. etc)

Dr.	Lorry A/c						Cr.
Date	Particulars	J.F.	Amount	Date	Particulars	J.F.	Amount
a	To Cash A/c		1,21,500	f	By Cash A/c		7,500
b	To Cash A/c		30,000
c	To Cash A/c		18,000
				–	By Balance c/d		44,500
			1,69,500				1,69,500

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Also, Check out the solved question of all Chapters: –

D K Goel – New ISC Accountancy -(Class 11 – ICSE)- Solution

• Chapter 1 Evolution of Accounting & Basic Accounting Terms
• Chapter 2 Accounting Equations
• Chapter 3 Meaning and Objectives of Accounting
• Chapter 4 Double Entry System
• Chapter 5 Books of Original Entry – Journal 
• Chapter 6 Accounting for Goods and Service Tax (GST) (Coming soon)
• Chapter 7 Books of Original Entry – Cash Book (Coming soon)
• Chapter 8 Books of Original Entry – Special Purpose Subsidiary Books (Coming soon)
• Chapter 9 Ledger (Coming soon)
• Chapter 10 Trial Balance and Errors (Coming soon)
• Chapter 11 Bank Reconciliation Statement (Coming soon)
• Chapter 12 Depreciation (Coming soon)
• Chapter 13 Bills of Exchange (Coming soon)
• Chapter 14 Generally Accepted Accounting Principles(GAAP) 
• Chapter 15 Bases of Accounting
• Chapter 16 Accounting Standards and International Financial Reporting Standard(IFRS) (Coming soon)
• Chapter 17 Capital and Revenue 
• Chapter 18 Provisions and Reserves 
• Chapter 19 Final Accounts (Coming soon)
• Chapter 20 Final Accounts – With Adjustments (Coming soon)
• Chapter 21 Errors and their Rectification (Coming soon)
• Chapter 22 Accounts from Incomplete Records – Single Entry System (Coming soon)
• Chapter 23 Accounts of Not-for-Profit Organisations (Coming soon)
• Chapter 24 Computerised Accounting System (Coming soon)
• Chapter 25 Introduction to Accounting Information System (Coming soon)

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