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A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above?
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A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st J...
Calculation of Depreciation
To calculate depreciation, we use the straight-line method which is calculated as:
Depreciation per annum = (Cost of Machinery - Salvage Value) / Useful Life
Here, the cost of machinery is Rs. 1,00,000 + Rs. 50,000 = Rs. 1,50,000. The useful life of machinery is 3 years, and the salvage value is zero.
Therefore, Depreciation per annum = (1,50,000 - 0) / 3 = Rs. 50,000
Calculation of Value of Machinery after 3 years
To calculate the value of machinery after 3 years, we need to subtract the total depreciation from the cost of machinery.
Total Depreciation = Depreciation per annum x Number of years
Total Depreciation = Rs. 50,000 x 3 = Rs. 1,50,000
Value of Machinery after 3 years = Cost of Machinery - Total Depreciation
Value of Machinery after 3 years = Rs. 1,50,000 - Rs. 1,50,000 = Rs. 0
Therefore, the correct option is (d) None of these above.
Explanation: The value of machinery after 3 years will be zero because the total depreciation charged on the machinery is equal to its cost. This means that the machinery has no value left after 3 years of use and depreciation charge.
To calculate depreciation, we use the straight-line method which is calculated as:
Depreciation per annum = (Cost of Machinery - Salvage Value) / Useful Life
Here, the cost of machinery is Rs. 1,00,000 + Rs. 50,000 = Rs. 1,50,000. The useful life of machinery is 3 years, and the salvage value is zero.
Therefore, Depreciation per annum = (1,50,000 - 0) / 3 = Rs. 50,000
Calculation of Value of Machinery after 3 years
To calculate the value of machinery after 3 years, we need to subtract the total depreciation from the cost of machinery.
Total Depreciation = Depreciation per annum x Number of years
Total Depreciation = Rs. 50,000 x 3 = Rs. 1,50,000
Value of Machinery after 3 years = Cost of Machinery - Total Depreciation
Value of Machinery after 3 years = Rs. 1,50,000 - Rs. 1,50,000 = Rs. 0
Therefore, the correct option is (d) None of these above.
Explanation: The value of machinery after 3 years will be zero because the total depreciation charged on the machinery is equal to its cost. This means that the machinery has no value left after 3 years of use and depreciation charge.
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A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st J...
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A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above?
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A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above?.
A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machinery purchase for Rs. 1,00,000 on 1st January, Further on 1st July New machinery purchased at Rs. 50,000. Depreciation charged @20% p.a. on Straight Line Method. After 3 years value of machinery will be: (a) Rs. 65,000 (b) Rs. 60,000 (c) Rs. 85,000 (d) None of these above?.
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