CA Foundation Exam  >  CA Foundation Questions  >  A purchased a mine for Rs. 2,50,000 minerals ... Start Learning for Free
A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?
  • a)
    Rs. 20,000
  • b)
    Rs. 25,000
  • c)
    Rs. 30,000
  • d)
    Rs. 35,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
A purchased a mine for Rs. 2,50,000 minerals in the mine were expected...
Depreciation is the decrease in the value of an asset over time due to wear and tear, obsolescence, or any other factors. In this case, the mine is the asset and the depreciation is calculated based on the amount of minerals used in the first year.

Given information:
- Purchase price of the mine: Rs. 2,50,000
- Expected minerals in the mine: 5,00,000 tonnes
- Minerals used in the first year: 50,000 tonnes

To calculate the depreciation for the first year, we need to determine the depreciation rate and then apply it to the purchase price of the mine.

Step 1: Calculate Depreciation Rate
The depreciation rate can be calculated using the formula:

Depreciation Rate = (Minerals Used / Total Minerals) * 100

In this case, the minerals used in the first year are 50,000 tonnes and the total minerals expected in the mine are 5,00,000 tonnes.

Depreciation Rate = (50,000 / 5,00,000) * 100
Depreciation Rate = 0.1 * 100
Depreciation Rate = 10%

Step 2: Calculate Depreciation Amount
The depreciation amount is calculated by multiplying the depreciation rate with the purchase price of the mine.

Depreciation Amount = Depreciation Rate * Purchase Price

Depreciation Amount = 10% * Rs. 2,50,000
Depreciation Amount = Rs. 25,000

Therefore, the depreciation for the first year is Rs. 25,000, which is option B in the given choices.
Free Test
Community Answer
A purchased a mine for Rs. 2,50,000 minerals in the mine were expected...
2`50'000*10/100
Explore Courses for CA Foundation exam
A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?
Question Description
A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?.
Solutions for A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice A purchased a mine for Rs. 2,50,000 minerals in the mine were expected to be 5,00,000 tonnes. In the first year, 50,000 tones of minerals were used. What is the depreciation for the first year?a)Rs. 20,000b)Rs. 25,000c)Rs. 30,000d)Rs. 35,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev