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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.
The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.
The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes was
- a)Rs.5,45,700
- b)Rs.5,52,700
- c)Rs.5,46,000
- d)Rs.5,49,400
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
On April 01, 2004 the debit balance of the machinery account of A Ltd....
Calculation of Depreciation under Diminishing Balance Method
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700) x 10% = Rs.51,030
Depreciation for the period April 01, 2004 to September 30, 2004 = (Rs.5,67,000 - Rs.56,700 - Rs.51,030) x 6/12 = Rs.20,919
Total Depreciation till September 30, 2004 = Rs.56,700 + Rs.51,030 + Rs.20,919 = Rs.1,28,649
Book Value of Machinery as on October 01, 2004 = Rs.5,67,000 - Rs.1,28,649 = Rs.4,38,351
Calculation of Depreciation under Straight-line Method
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700)/2 = Rs.2,55,150/2 = Rs.1,27,575
Depreciation for the year 2004-2005 = (Rs.4,38,351 - Rs.60,000 - Rs.6,000)/2 = Rs.1,86,675/2 = Rs.93,338
Adjustment Entry for Change in Depreciation Method
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700)/2 = Rs.2,55,150/2 = Rs.1,27,575
Depreciation for the year 2004-2005 = (Rs.5,67,000 - Rs.60,000 - Rs.6,000 - Rs.56,700 - Rs.1,27,575)/2 = Rs.2,16,150/2 = Rs.1,08,075
Adjustment Entry = Depreciation for the year 2002-2003 + Depreciation for the year 2003-2004 - (Rs.56,700 + Rs.1,27,575) + Depreciation for the year 2004-2005 - Rs.93,338
= Rs.56,700 + Rs.1,27,575 - Rs.56,700 - Rs.1,27,575 + Rs.1,08,075 - Rs.93,338
= Rs.14,637 (to be added to the Machinery Account)
Balance of Machinery Account as on March 31, 2005
Debit Balance as on April 01, 2004 = Rs.5,67,000
Add: Adjustment Entry = Rs.14,637
Less: Depreciation for the year 2004-2005 = Rs
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700) x 10% = Rs.51,030
Depreciation for the period April 01, 2004 to September 30, 2004 = (Rs.5,67,000 - Rs.56,700 - Rs.51,030) x 6/12 = Rs.20,919
Total Depreciation till September 30, 2004 = Rs.56,700 + Rs.51,030 + Rs.20,919 = Rs.1,28,649
Book Value of Machinery as on October 01, 2004 = Rs.5,67,000 - Rs.1,28,649 = Rs.4,38,351
Calculation of Depreciation under Straight-line Method
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700)/2 = Rs.2,55,150/2 = Rs.1,27,575
Depreciation for the year 2004-2005 = (Rs.4,38,351 - Rs.60,000 - Rs.6,000)/2 = Rs.1,86,675/2 = Rs.93,338
Adjustment Entry for Change in Depreciation Method
Depreciation for the year 2002-2003 = Rs.5,67,000 x 10% = Rs.56,700
Depreciation for the year 2003-2004 = (Rs.5,67,000 - Rs.56,700)/2 = Rs.2,55,150/2 = Rs.1,27,575
Depreciation for the year 2004-2005 = (Rs.5,67,000 - Rs.60,000 - Rs.6,000 - Rs.56,700 - Rs.1,27,575)/2 = Rs.2,16,150/2 = Rs.1,08,075
Adjustment Entry = Depreciation for the year 2002-2003 + Depreciation for the year 2003-2004 - (Rs.56,700 + Rs.1,27,575) + Depreciation for the year 2004-2005 - Rs.93,338
= Rs.56,700 + Rs.1,27,575 - Rs.56,700 - Rs.1,27,575 + Rs.1,08,075 - Rs.93,338
= Rs.14,637 (to be added to the Machinery Account)
Balance of Machinery Account as on March 31, 2005
Debit Balance as on April 01, 2004 = Rs.5,67,000
Add: Adjustment Entry = Rs.14,637
Less: Depreciation for the year 2004-2005 = Rs
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Community Answer
On April 01, 2004 the debit balance of the machinery account of A Ltd....
Calculation of Depreciation as per Diminishing Balance Method:
Depreciation for the year 2002-03: 10% of Rs.5,67,000 = Rs.56,700
Depreciation for the year 2003-04: 10% of (Rs.5,67,000 - Rs.56,700) = Rs.51,930
Depreciation for the period April 01, 2004 to September 30, 2004: 10% of (Rs.5,67,000 - Rs.56,700 - Rs.51,930) = Rs.44,737
Total Depreciation as per Diminishing Balance Method = Rs.1,53,367
Calculation of Depreciation as per Straight-line Method:
Depreciation for the year 2002-03: (Rs.5,67,000 - Rs.60,000)/3 = Rs.1,69,000
Depreciation for the year 2003-04: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000)/3 = Rs.1,12,667
Depreciation for the period April 01, 2004 to September 30, 2004: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000 - Rs.1,12,667)/2 = Rs.63,666
Total Depreciation as per Straight-line Method = Rs.3,45,333
Adjustment for Depreciation:
Depreciation for the year 2004-05 as per Straight-line Method: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000 - Rs.1,12,667 - Rs.63,666) = Rs.1,61,667
Less: Depreciation for the year 2004-05 as per Diminishing Balance Method = Rs.44,737
Adjustment for Depreciation = Rs.1,16,930
Balance outstanding as on March 31, 2005:
Debit balance as on April 01, 2004 = Rs.5,67,000
Add: Cost of new machine = Rs.60,000
Add: Installation expenses = Rs.6,000
Less: Adjustment for Depreciation = Rs.1,16,930
Balance outstanding as on March 31, 2005 = Rs.5,52,700
Hence, the correct answer is option 'B'.
Depreciation for the year 2002-03: 10% of Rs.5,67,000 = Rs.56,700
Depreciation for the year 2003-04: 10% of (Rs.5,67,000 - Rs.56,700) = Rs.51,930
Depreciation for the period April 01, 2004 to September 30, 2004: 10% of (Rs.5,67,000 - Rs.56,700 - Rs.51,930) = Rs.44,737
Total Depreciation as per Diminishing Balance Method = Rs.1,53,367
Calculation of Depreciation as per Straight-line Method:
Depreciation for the year 2002-03: (Rs.5,67,000 - Rs.60,000)/3 = Rs.1,69,000
Depreciation for the year 2003-04: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000)/3 = Rs.1,12,667
Depreciation for the period April 01, 2004 to September 30, 2004: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000 - Rs.1,12,667)/2 = Rs.63,666
Total Depreciation as per Straight-line Method = Rs.3,45,333
Adjustment for Depreciation:
Depreciation for the year 2004-05 as per Straight-line Method: (Rs.5,67,000 - Rs.60,000 - Rs.1,69,000 - Rs.1,12,667 - Rs.63,666) = Rs.1,61,667
Less: Depreciation for the year 2004-05 as per Diminishing Balance Method = Rs.44,737
Adjustment for Depreciation = Rs.1,16,930
Balance outstanding as on March 31, 2005:
Debit balance as on April 01, 2004 = Rs.5,67,000
Add: Cost of new machine = Rs.60,000
Add: Installation expenses = Rs.6,000
Less: Adjustment for Depreciation = Rs.1,16,930
Balance outstanding as on March 31, 2005 = Rs.5,52,700
Hence, the correct answer is option 'B'.
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer?
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On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct 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 On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct 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 On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer?.
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct 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 On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct 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 On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer?.
Solutions for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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Here you can find the meaning of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer?, a detailed solution for On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On April 01, 2004 the debit balance of the machinery account of A Ltd. was Rs.5,67,000.The machine was purchased on April 01, 2002. The company charged depreciation at the rate of 10% per annum under diminishing balance method. On October 01, 2004, the company acquired a new machine at a cost of Rs.60,000 and incurred Rs.6,000 for installation of the new machine. The company decided to change the system of providing depreciation from the diminishing balance method to the straight-line method with retrospective effect from April 01, 2002. The rate of depreciation will remain the same.The company decided to make necessary adjustments in respect of depreciation due to the change in the method in the year 2004-2005.The balance outstanding to the debit of machinery account as on March 31, 2005 after effecting the above changes wasa)Rs.5,45,700b)Rs.5,52,700c)Rs.5,46,000d)Rs.5,49,400Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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