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Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.
 
Q.Closing balance of Machinery = ___________.
  • a)
    1,32,000
  • b)
    1,64,000
  • c)
    1,96,000
  • d)
    2,28,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid cust...
Calculation of Depreciation:
Depreciation for the year 2002-03:
Depreciation on imported machinery = 20% of (Rs 1,28,000 + Rs 64,000 + Rs 48,000) = Rs 48,000
Depreciation on local machinery = 20% of Rs 80,000 = Rs 16,000
Total depreciation for the year 2002-03 = Rs 64,000

Depreciation for the year 2003-04:
Depreciation on imported machinery = 20% of (Rs 1,28,000 + Rs 64,000 + Rs 48,000 - Rs 27,840) = Rs 46,272
Depreciation on local machinery = 20% of Rs 80,000 = Rs 16,000
Total depreciation for the year 2003-04 = Rs 62,272

Closing balance of Machinery:
Closing balance of imported machinery as on 01.07.2002 = Rs 1,28,000 + Rs 64,000 + Rs 48,000 = Rs 2,40,000
Closing balance of local machinery as on 01.01.2003 = Rs 80,000
Closing balance of imported machinery as on 01.07.2004 = Rs 2,40,000 - Rs 27,840 - Rs 46,272 + Rs 40,000 = Rs 2,05,888
Closing balance of local machinery as on 31.03.2005 = Rs 80,000 - Rs 16,000 - Rs 16,000 = Rs 48,000
Therefore, the total closing balance of machinery as on 31.03.2005 = Rs 2,05,888 + Rs 48,000 = Rs 2,53,888
Hence, the correct option is (B) Rs 1,64,000.
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Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid cust...
 
Machinery Account
Dr.
Cr.
Date
Particulars
Amount

(Rs)
Date
Particulars
Amount

(Rs)
2011
  
2012
  
Oct.1
Bank A/c
2,40,000
Mar. 31
Depreciation A/c
 
 
M1                        80,000
  
M1                                        8,000
 
 
M2                     1,60,000
  
M2                                      16,000
24,000
    
Balance c/d
 
    
M1                                     72,000
 
    
M2                                   1,44,000
2,16,000
      
  
2,40,000
  
2,40,000
2012
  
2013
  
Apr. 01
Balance b/d
 
Mar.31
Depreciation A/c
 
 
M1                       72,000             
  
M1                                         16,000
 
 
M2                     1,44,000
2,16,000
 
M2                                         32,000
 
Apr.01
Bank A/c (M3)
80,000
 
M3                                         16,000
64,000
   
Mar.31
Balance c/d
 
    
M1                                         56,000
 
    
M2                                       1,12,000
 
    
M3                                          64,000
2,32,000
      
      
  
2,96,000
  
2,96,000
2013
  
2013
  
 Apr. 01
Balance b/d
 
Oct. 01
Depreciation A/c (on M1 for 6 months)
8,000
 
M1                         56,000
  
Bank A/c (Sale of M1)
27,840
 
M2                        1,12,000
  
Profit and Loss A/c (Loss on Sale)
20,160
 
M3                          64,000
2,32,000
2014
  
   
Mar.31
Depreciation on-
 
Oct.01
Bank A/c (M4)
40,000
 
M2                                      32,000
 
    
M3                                      16,000
 
    
M4                                         4,000
52,000
   
Mar.31
Balance c/d
 
    
M2                                       80,000
 
    
M3                                       48,000
 
    
M4                                        36,000
1,64,000
  
2,72,000
  
2,72,000
      

Particulars
Amount
Value of M1 as on Apr. 01, 2013
56,000
Less
: Depreciation for 6 months
8,000
Value of M1 as on Oct. 01, 2013
48,000
Less
: Sale Value
27,840
Loss on Sale
20,160
  

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Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer?
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Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer?.
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Here you can find the meaning of Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid customs duty and freight Rs 64,000 and incurred erection charges Rs 48,000. Another local machinery costing Rs 80,000 was purchased on 01.01.2003. On 01.07.2004, a portion of the imported machinery ( value one-third ) got out of order and was sold for Rs 27,840. Another machinery was purchased to replace the same for Rs 40,000. Depreciation is to be calculated at 20% p.a.Q.Closing balance of Machinery = ___________.a)1,32,000b)1,64,000c)1,96,000d)2,28,000Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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