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A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.
- a)Rs. 1,00,000
- b)Rs. 1,40,000
- c)Rs. 40,000
- d)Rs. 1,20,000
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st Oc...
Given:
Cost of machine on 1st April, 2007 = Rs. 5,00,000
Cost of machine on 1st October, 2007 = Rs. 2,00,000
Depreciation rate = 20% p.a. on written down value method
To find:
Depreciation for the year ending 31st March, 2008
Solution:
First, we need to calculate the written down value (WDV) of the machine as on 31st March, 2008, which is the end of the financial year.
WDV as on 31st March, 2008 = (Cost of machine on 1st April, 2007 + Cost of machine on 1st October, 2007) x (1- Depreciation rate)^1
= (5,00,000 + 2,00,000) x (1- 0.2)^1
= 6,00,000 x 0.8
= Rs. 4,80,000
Now, we can calculate the depreciation for the year ending 31st March, 2008 using the formula:
Depreciation = WDV as on 31st March, 2008 x Depreciation rate
= 4,80,000 x 0.2
= Rs. 96,000
However, since the machine was purchased on 1st October, 2007, we need to calculate the depreciation only for the period from 1st October, 2007 to 31st March, 2008, which is 6 months or half a year.
Depreciation for 6 months = Rs. 96,000 / 2
= Rs. 48,000
Therefore, the depreciation for the year ending 31st March, 2008 is Rs. 1,20,000 (Rs. 72,000 for the period from 1st April, 2007 to 30th September, 2007 and Rs. 48,000 for the period from 1st October, 2007 to 31st March, 2008).
Hence, option D is the correct answer.
Cost of machine on 1st April, 2007 = Rs. 5,00,000
Cost of machine on 1st October, 2007 = Rs. 2,00,000
Depreciation rate = 20% p.a. on written down value method
To find:
Depreciation for the year ending 31st March, 2008
Solution:
First, we need to calculate the written down value (WDV) of the machine as on 31st March, 2008, which is the end of the financial year.
WDV as on 31st March, 2008 = (Cost of machine on 1st April, 2007 + Cost of machine on 1st October, 2007) x (1- Depreciation rate)^1
= (5,00,000 + 2,00,000) x (1- 0.2)^1
= 6,00,000 x 0.8
= Rs. 4,80,000
Now, we can calculate the depreciation for the year ending 31st March, 2008 using the formula:
Depreciation = WDV as on 31st March, 2008 x Depreciation rate
= 4,80,000 x 0.2
= Rs. 96,000
However, since the machine was purchased on 1st October, 2007, we need to calculate the depreciation only for the period from 1st October, 2007 to 31st March, 2008, which is 6 months or half a year.
Depreciation for 6 months = Rs. 96,000 / 2
= Rs. 48,000
Therefore, the depreciation for the year ending 31st March, 2008 is Rs. 1,20,000 (Rs. 72,000 for the period from 1st April, 2007 to 30th September, 2007 and Rs. 48,000 for the period from 1st October, 2007 to 31st March, 2008).
Hence, option D is the correct answer.
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A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer?
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A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. 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 machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. 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 machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer?.
A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. 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 machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. 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 machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer?.
Solutions for A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A machine was purchased on 1st April, 2007 for Rs. 5,00,000 and 1st October, 2007 for Rs. 2,00,000. Calculate depreciation @ 20% p.a. on written down value method for the year ending 31st March, 2008.a)Rs. 1,00,000b)Rs. 1,40,000c)Rs. 40,000d)Rs. 1,20,000Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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