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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?
Most Upvoted Answer
Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installat...
Depreciation Calculation:

- Cost of the machine = Rs 1,20,000
- Installation expenses = Rs 10,000
- Total cost = Rs 1,30,000

Depreciation rate = 10% p.a.

- Depreciation for the first year = 10% of Rs 1,30,000 = Rs 13,000
- Depreciation for the second year = 10% of (Rs 1,30,000 - Rs 13,000) = Rs 11,700
- Depreciation for the third year = 10% of (Rs 1,30,000 - Rs 13,000 - Rs 11,700) = Rs 10,530
- Depreciation for the fourth year = 10% of (Rs 1,30,000 - Rs 13,000 - Rs 11,700 - Rs 10,530) = Rs 9,477

Therefore, the correct answer is option D.
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Community Answer
Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installat...
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
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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?
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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? 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 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? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 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?.
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