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The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assets amounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.
The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would be
- a)Rs. 2,20,000
- b)Rs. 1,20,000
- c)Rs. 1,70,000
- d)Rs. 2,50,000
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
The balance in the accumulated provision for depreciation account of a...
's depreciation on all assets would be:
The annual depreciation charged on all assets is 10% of the original cost, which is Rs. 1,00,000 (10% of Rs. 10,00,000). Therefore, the depreciation charged for the current year (2004-2005) would be Rs. 1,00,000.
The accumulated depreciation at the beginning of the year was Rs. 2,00,000. The depreciation charged for the year is Rs. 1,00,000. Therefore, the accumulated depreciation at the end of the year would be:
Accumulated depreciation at the beginning of the year + Depreciation charged for the year - Depreciation on disposed off asset
= Rs. 2,00,000 + Rs. 1,00,000 - Rs. 80,000
= Rs. 2,20,000
Therefore, the balance of the accumulated depreciation account at the end of the year (2004-2005) would be Rs. 2,20,000.
The annual depreciation charged on all assets is 10% of the original cost, which is Rs. 1,00,000 (10% of Rs. 10,00,000). Therefore, the depreciation charged for the current year (2004-2005) would be Rs. 1,00,000.
The accumulated depreciation at the beginning of the year was Rs. 2,00,000. The depreciation charged for the year is Rs. 1,00,000. Therefore, the accumulated depreciation at the end of the year would be:
Accumulated depreciation at the beginning of the year + Depreciation charged for the year - Depreciation on disposed off asset
= Rs. 2,00,000 + Rs. 1,00,000 - Rs. 80,000
= Rs. 2,20,000
Therefore, the balance of the accumulated depreciation account at the end of the year (2004-2005) would be Rs. 2,20,000.
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Community Answer
The balance in the accumulated provision for depreciation account of a...
Given Data:
- Accumulated depreciation at the beginning of the year: Rs. 2,00,000
- Original cost of all assets: Rs. 10,00,000
- Depreciation rate: 10% on a straight-line basis
- Asset sold:
- Original cost: Rs. 5,00,000
- Accumulated depreciation at the beginning of the year: Rs. 80,000
Steps to Calculate the Balance of Accumulated Depreciation:
- Calculate the depreciation for the asset sold during the year:
- Depreciation on the asset sold (Rs. 5,00,000) for the current year: Depreciation = 10% × 5,00,000 = Rs.50,000
- Total accumulated depreciation on the sold asset by the time it was disposed of: Rs.80,000 + Rs.50,000 = Rs.1,30,000Rs.
- Depreciation on the remaining assets:
- Remaining assets after the sale (Original cost: Rs. 5,00,000)
- Depreciation for the current year on these assets: 10% × 5,00,000 = Rs.50,000
- Accumulated Depreciation at the End of the Year:
- Starting accumulated depreciation: Rs. 2,00,000
- Subtract accumulated depreciation of the asset sold: Rs. 1,30,000
- Add depreciation for the remaining assets: Rs. 50,000
Final Calculation:
2,00,000−1,30,000+50,000=Rs.1,20,000
Given this thorough recalculation, the balance of the accumulated depreciation account at the end of the year is indeed Rs. 1,20,000.
Answer: . Rs. 1,20,000
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The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct answer is option 'B'. Can you explain this answer?
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The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct 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 The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct 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 The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct answer is option 'B'. Can you explain this answer?.
The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct 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 The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct 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 The balance in the accumulated provision for depreciation account of a company as at the beginning of the year 2004-2005 was Rs. 2,00,000 when the original cost of the assetsamounted to Rs.10,00,000. The company charges 10%depreciation on a straight line basis for all the assets including those which have been either purchased or sold during the year. One such asset costing Rs.5,00,000 with accumulated depreciation as at the beginning of the year of Rs.80,000 was disposed off during the year.The balance of the accumulated depreciation account at the end of the year considering the current year’s depreciation charge would bea)Rs. 2,20,000b)Rs. 1,20,000c)Rs. 1,70,000d)Rs. 2,50,000Correct answer is option 'B'. Can you explain this answer?.
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