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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?
Verified Answer
Amit Ltd. purchased a machine on 01.01.2003 for Rs 1,20,000. Installat...
To calculate the depreciation for the 4th year using the Written Down Value (WDV) method, we follow these structured steps:
- Determine the initial cost of the machinery. The purchase price is Rs. 1,20,000, and the installation expenses are Rs. 10,000. Therefore, the total value of the machinery is calculated as follows:
Total Value = Purchase Price + Installation Expenses = 1,20,000 + 10,000 = 1,30,000 - Calculate the depreciation for the first year. The rate of depreciation is 10% on the WDV. Thus, the first-year depreciation is:
- Calculate the WDV at the beginning of the second year:
WDV after 1st Year = Total Value − 1st Year Depreciation = 1,30,000 − 13,000 = 1,17,000 - Calculate the depreciation for the second year:
- Calculate the WDV at the beginning of the third year:
WDV after 2nd Year = WDV after 1st Year − 2nd Year Depreciation = 1,17,000 − 11,700 = 1,05,300 - Calculate the depreciation for the third year:
- Calculate the WDV at the beginning of the fourth year:
WDV after 3rd Year = WDV after 2nd Year − 3rd Year Depreciation = 1,05,300 − 10,530 = 94,770 - Finally, calculate the depreciation for the fourth year:
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.
- 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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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
=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 2025 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 2025 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?.
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 2025 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 2025 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?.
Solutions 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? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice 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? tests, examples and also practice CA Foundation tests.
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