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A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be?
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A Second hand machinery was purchased for 1,00,000 five years ago and ...
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Cost of Machinery:
The cost of the second-hand machinery is given as 1,00,000.
Overhaul Cost:
The machinery was overhauled by carrying out repairs at a cost of 10,000.
Accumulated Depreciation:
The machinery has an accumulated depreciation of 50,000.
Total Cost:
The total cost of the machinery can be calculated by adding the cost of the machinery, overhaul cost, and accumulated depreciation.
Total Cost = Cost of Machinery + Overhaul Cost - Accumulated Depreciation
Total Cost = 1,00,000 + 10,000 - 50,000
Total Cost = 60,000
Disposal Price:
The machinery was disposed of for 60,000.
Profit/Loss Calculation:
To calculate the profit or loss on the disposal of machinery, we need to compare the disposal price with the total cost.
If the disposal price is higher than the total cost, it results in a profit.
Profit = Disposal Price - Total Cost
Profit = 60,000 - 60,000
Profit = 0
If the disposal price is lower than the total cost, it results in a loss.
Loss = Total Cost - Disposal Price
Loss = 60,000 - 60,000
Loss = 0
Profit/Loss on Disposal:
In this case, the disposal price is equal to the total cost of the machinery. Therefore, there is neither a profit nor a loss on the disposal of the machinery.
Explanation:
The profit or loss on the disposal of machinery is determined by comparing the disposal price with the total cost. If the disposal price is higher than the total cost, it results in a profit. If the disposal price is lower than the total cost, it results in a loss. In this case, the disposal price is equal to the total cost, indicating that there is no profit or loss on the disposal of the machinery.
Cost of Machinery:
The cost of the second-hand machinery is given as 1,00,000.
Overhaul Cost:
The machinery was overhauled by carrying out repairs at a cost of 10,000.
Accumulated Depreciation:
The machinery has an accumulated depreciation of 50,000.
Total Cost:
The total cost of the machinery can be calculated by adding the cost of the machinery, overhaul cost, and accumulated depreciation.
Total Cost = Cost of Machinery + Overhaul Cost - Accumulated Depreciation
Total Cost = 1,00,000 + 10,000 - 50,000
Total Cost = 60,000
Disposal Price:
The machinery was disposed of for 60,000.
Profit/Loss Calculation:
To calculate the profit or loss on the disposal of machinery, we need to compare the disposal price with the total cost.
If the disposal price is higher than the total cost, it results in a profit.
Profit = Disposal Price - Total Cost
Profit = 60,000 - 60,000
Profit = 0
If the disposal price is lower than the total cost, it results in a loss.
Loss = Total Cost - Disposal Price
Loss = 60,000 - 60,000
Loss = 0
Profit/Loss on Disposal:
In this case, the disposal price is equal to the total cost of the machinery. Therefore, there is neither a profit nor a loss on the disposal of the machinery.
Explanation:
The profit or loss on the disposal of machinery is determined by comparing the disposal price with the total cost. If the disposal price is higher than the total cost, it results in a profit. If the disposal price is lower than the total cost, it results in a loss. In this case, the disposal price is equal to the total cost, indicating that there is no profit or loss on the disposal of the machinery.
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A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be?
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A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? 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 A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be?.
A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? 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 A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be?.
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A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be?, a detailed solution for A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? has been provided alongside types of A Second hand machinery was purchased for 1,00,000 five years ago and was overhauled by carrying out some repairs at a cost of 10,000. It has also an accumulated depreciation of 50,000. It has been disposed off in the beginning of the sixth year for 60,000.Profit /loss on such disposal shall be? theory, EduRev gives you an
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