Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.
  • a)
    25,000
  • b)
    10530
  • c)
    9,477
  • d)
    13,000
Correct answer is option 'D'. Can you explain this answer?

CA Foundation Question

4 Answers
B4u Jyo answered Apr 11, 2020
Machine value=120000+10000
=130000
130000 into 10% is equal to 13000
117000 into 10% is equals to 11700
105300 into 10% is equals to 10,530
94770 into 10% equals to 9477

Nayan Upadhyay answered Apr 09, 2020
In under value method the depericiation is charged at fix rate in each & every year therefore the total expenditure for purchase machinery and installation expense is - 120000 + 10000 = 130000 and depericiation is provided 10 % so

130000 ×10% = 13000 rs depericiation for 4th year.

Shwena Chopra answered Apr 22, 2020
9477 is the correct ans. As the method which is used is written down value method

Yash Reddy answered 4 weeks ago
It is also called as down value method.am right?

This discussion on Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.a)25,000b)10530c)9,477d)13,000Correct answer is option 'D'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.a)25,000b)10530c)9,477d)13,000Correct answer is option 'D'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installation expenses were Rs 10,000. Residual value after 5 years Rs 5,000. On 01.07.2003, expenses for repairs were incurred to the extent of Rs 2,000. Depreciation is provided @ 10% p.a. under written down value method. Depreciation for the 4th year = ________.a)25,000b)10530c)9,477d)13,000Correct answer is option 'D'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.