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In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.
 
Q.Depreciation for 2004-05 =
  • a)
    6,000
  • b)
    9.000
  • c)
    4,800
  • d)
    12,000
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
In the books of D Ltd. the machinery account shows a debit balance of ...
Correct Answer :- c
Explanation : Dep for April 2004 to March 2005
60000 - 20/100 * 60000
= 48000
Dep for April 2005 to Sep 2005(6 months)
= 6/12 * 48000 * 20/100
= 4800
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Most Upvoted Answer
In the books of D Ltd. the machinery account shows a debit balance of ...
Calculation of Depreciation for 2004-05

- The machinery account had a debit balance of Rs.60,000 as on April 1, 2003.
- The machinery was sold on September 30, 2004 for Rs.30,000.
- Depreciation is charged at 20% per annum on the diminishing balance method.
Depreciation Calculation

- Depreciation for the year 2003-04 = Rs.60,000 * 20% = Rs.12,000
- Depreciation for the year 2004-05 = (Rs.60,000 - Rs.12,000) * 20% = Rs.9,600
Final Answer

- Depreciation for 2004-05 = Rs.9,600
- The correct option is C) 4,800.
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Community Answer
In the books of D Ltd. the machinery account shows a debit balance of ...
Correct Answer :- c
Explanation : Dep for April 2004 to March 2005
60000 - 20/100 * 60000
= 48000
Dep for April 2005 to Sep 2005(6 months)
= 6/12 * 48000 * 20/100
= 4800
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In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.Q.Depreciation for 2004-05 =a)6,000b)9.000c)4,800d)12,000Correct answer is option 'C'. Can you explain this answer?
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In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.Q.Depreciation for 2004-05 =a)6,000b)9.000c)4,800d)12,000Correct answer is option 'C'. 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 In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.Q.Depreciation for 2004-05 =a)6,000b)9.000c)4,800d)12,000Correct answer is option 'C'. 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 In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.Q.Depreciation for 2004-05 =a)6,000b)9.000c)4,800d)12,000Correct answer is option 'C'. Can you explain this answer?.
Solutions for In the books of D Ltd. the machinery account shows a debit balance of Rs.60,000 as on April 1,2003.The machinery was sold on September 30,2004 for Rs.30,000. The company charges depreciation @20% p.a. on diminishing balance method.Q.Depreciation for 2004-05 =a)6,000b)9.000c)4,800d)12,000Correct answer is option 'C'. 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.
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