1 Calculation of Profit Loss on sale of Truck on Ist Jan 2016 Truck purchased on 1-1-2015 * 25.000 Less-10% depreciation upto sale 2.500 (625+1,875) WDV as on 1-1-2016 22.500 Less-Selling Price * 20.000 Loss on sale of Truck * 2.500 Calculation of Profit Loss on sale of Truck on 1st July 2016 Truck purchased on 1-1-2015 * 25.000 Less-10% depreciation up to sale 3.750 (625+2,500+625) WDV as on 1-7-2016 21.250 Selling Price * 22.000 Profit on sale of Truck 750 2 60 Alternative Working Note: Truck I-A Truck Truck Truck Truck I-B I-C 3 I-D 3 II Total Depre ciation 1-1-15 25,000 1-1-15 25,000 1-1-15 25,000 1-1-15 25.000 1-1-17 40.000 2,500 31-3-15 625 31-3-15 625 31-3-15 625 31-3-15 625 1-4-15 24,375 1-4-15 24,3751-4-15 24,375 1-4-15 24.375 1-1-16 1.875 31-3-16 2,500 31-3-16 2.500 31-3-16 2.500 9,375 W.D.V 22,500 1-4-16 21.875 1-4-16 21,875 1-4-16 21,875 Sales price 20,0001-7-16 625 31-3-17 2,500 31-3-17 2500 31-3-17 1,000 6,625 Loss on sale 2.500 WD.V 21,250 1-4-17 19,375 1-4-17 19.375 1-4-17 39.000 22.000 Sales price Profit on sale 750 Illustration 5. Ms Rubina Traders, Sindhudurg, bought Furniture worth 30,000 on 1st April 2016 and additional Furniture on Ist October 2016 worth 20,000. They charged depreciation at 15% pa. on Fixed Instalment Basis. On 1st October 2018 they sold one Cupboard for 35,000 Original cost of which on 1st April 2016 was 10.000. On the same date, a new Cupboard was purchased for 15.000 Show the Furniture A/c and Depreciation A/c for the years 2016-17, 2017-18 and 2018-19 assuming that the financial year closes on 31st March every year