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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.Profit / Loss on sale = ______.
- a)20,160 (Profit)
- b)19,600 (Profit)
- c)20,160 (Loss)
- d)19,600 (Loss)
Correct answer is option 'C'. Can you explain this answer?
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Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid cust...
Machinery Account of X Ltd
Debit. Credit.
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
Depreciation for 6 months(loss) 8,000
Value of M1 as on Oct. 01, 2013 48,000
Sale Value(loss) 27,840
Net Loss on Sale 20,160
Most Upvoted Answer
Akhil Ltd. imported a machine on 01.07.2002 for Rs 1,28,000, paid cust...
Calculation of Profit/Loss on Sale:
To calculate the profit/loss on the sale of the machine, we need to determine the book value of the machine at the time of sale and compare it with the selling price.
Step 1: Determine the Book Value of the Machine:
The imported machine was purchased on 01.07.2002 for Rs 1,28,000. We need to calculate the depreciation for the period from 01.07.2002 to the date of sale on 01.07.2004.
Depreciation for the first year (2002-2003):
Depreciation = Cost of Machine x Depreciation Rate
Depreciation = Rs 1,28,000 x 20% = Rs 25,600
Depreciation for the second year (2003-2004):
Depreciation = Rs 1,28,000 x 20% = Rs 25,600
Total Depreciation = Rs 25,600 + Rs 25,600 = Rs 51,200
Book Value of the Machine on 01.07.2004 = Cost of Machine - Total Depreciation
Book Value = Rs 1,28,000 - Rs 51,200 = Rs 76,800
Step 2: Calculate Profit/Loss on Sale:
The portion of the machine sold was one-third of its value, which means the selling price is also one-third of the book value.
Selling Price = Rs 76,800/3 = Rs 25,600
Profit/Loss = Selling Price - Book Value
Profit/Loss = Rs 25,600 - Rs 76,800 = -Rs 51,200
Since the selling price is less than the book value, the company incurred a loss on the sale of the machine.
Therefore, the correct answer is option C) 20,160 (Loss).
To calculate the profit/loss on the sale of the machine, we need to determine the book value of the machine at the time of sale and compare it with the selling price.
Step 1: Determine the Book Value of the Machine:
The imported machine was purchased on 01.07.2002 for Rs 1,28,000. We need to calculate the depreciation for the period from 01.07.2002 to the date of sale on 01.07.2004.
Depreciation for the first year (2002-2003):
Depreciation = Cost of Machine x Depreciation Rate
Depreciation = Rs 1,28,000 x 20% = Rs 25,600
Depreciation for the second year (2003-2004):
Depreciation = Rs 1,28,000 x 20% = Rs 25,600
Total Depreciation = Rs 25,600 + Rs 25,600 = Rs 51,200
Book Value of the Machine on 01.07.2004 = Cost of Machine - Total Depreciation
Book Value = Rs 1,28,000 - Rs 51,200 = Rs 76,800
Step 2: Calculate Profit/Loss on Sale:
The portion of the machine sold was one-third of its value, which means the selling price is also one-third of the book value.
Selling Price = Rs 76,800/3 = Rs 25,600
Profit/Loss = Selling Price - Book Value
Profit/Loss = Rs 25,600 - Rs 76,800 = -Rs 51,200
Since the selling price is less than the book value, the company incurred a loss on the sale of the machine.
Therefore, the correct answer is option C) 20,160 (Loss).
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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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. Can you explain this answer?.
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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. 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.Profit / Loss on sale = ______.a)20,160 (Profit)b)19,600 (Profit)c)20,160 (Loss)d)19,600 (Loss)Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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