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On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.
On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.
On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.
One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down value
Q.The total amount of depreciation written off on the two machines till they were discarded is
- a)Rs.21,000
- b)Rs.15,118
- c)Rs.13,595
- d)Rs.18,194
Correct answer is option 'B'. Can you explain this answer?
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On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respec...
The total amount of depreciation written off on the two machines till they were discarded is Rs.15,118.
Explanation:
To calculate the depreciation, we will use the written down value method, which applies a fixed percentage to the remaining value of the asset each year.
Let's calculate the depreciation for each machine separately:
First Machine:
- Cost of the machine: Rs.20,000
- Depreciation rate: 15%
- Depreciation for the first year: Rs.20,000 * 15% = Rs.3,000
- Remaining value after the first year: Rs.20,000 - Rs.3,000 = Rs.17,000
- Depreciation for the second year: Rs.17,000 * 15% = Rs.2,550
- Remaining value after the second year: Rs.17,000 - Rs.2,550 = Rs.14,450
- Depreciation for the third year: Rs.14,450 * 15% = Rs.2,167.50
- Remaining value after the third year: Rs.14,450 - Rs.2,167.50 = Rs.12,282.50
Second Machine:
- Cost of the machine: Rs.15,000
- Depreciation rate: 15%
- Depreciation for the first year: Rs.15,000 * 15% = Rs.2,250
- Remaining value after the first year: Rs.15,000 - Rs.2,250 = Rs.12,750
- Depreciation for the second year: Rs.12,750 * 15% = Rs.1,912.50
- Remaining value after the second year: Rs.12,750 - Rs.1,912.50 = Rs.10,837.50
- Depreciation for the third year: Rs.10,837.50 * 15% = Rs.1,625.625
- Remaining value after the third year: Rs.10,837.50 - Rs.1,625.625 = Rs.9,211.875
Now, let's calculate the total depreciation for both machines:
Total depreciation for the first machine = Rs.3,000 + Rs.2,550 + Rs.2,167.50 = Rs.7,717.50
Total depreciation for the second machine = Rs.2,250 + Rs.1,912.50 + Rs.1,625.625 = Rs.5,788.125
Therefore, the total amount of depreciation written off on the two machines till they were discarded is Rs.7,717.50 + Rs.5,788.125 = Rs.15,118.
Explanation:
To calculate the depreciation, we will use the written down value method, which applies a fixed percentage to the remaining value of the asset each year.
Let's calculate the depreciation for each machine separately:
First Machine:
- Cost of the machine: Rs.20,000
- Depreciation rate: 15%
- Depreciation for the first year: Rs.20,000 * 15% = Rs.3,000
- Remaining value after the first year: Rs.20,000 - Rs.3,000 = Rs.17,000
- Depreciation for the second year: Rs.17,000 * 15% = Rs.2,550
- Remaining value after the second year: Rs.17,000 - Rs.2,550 = Rs.14,450
- Depreciation for the third year: Rs.14,450 * 15% = Rs.2,167.50
- Remaining value after the third year: Rs.14,450 - Rs.2,167.50 = Rs.12,282.50
Second Machine:
- Cost of the machine: Rs.15,000
- Depreciation rate: 15%
- Depreciation for the first year: Rs.15,000 * 15% = Rs.2,250
- Remaining value after the first year: Rs.15,000 - Rs.2,250 = Rs.12,750
- Depreciation for the second year: Rs.12,750 * 15% = Rs.1,912.50
- Remaining value after the second year: Rs.12,750 - Rs.1,912.50 = Rs.10,837.50
- Depreciation for the third year: Rs.10,837.50 * 15% = Rs.1,625.625
- Remaining value after the third year: Rs.10,837.50 - Rs.1,625.625 = Rs.9,211.875
Now, let's calculate the total depreciation for both machines:
Total depreciation for the first machine = Rs.3,000 + Rs.2,550 + Rs.2,167.50 = Rs.7,717.50
Total depreciation for the second machine = Rs.2,250 + Rs.1,912.50 + Rs.1,625.625 = Rs.5,788.125
Therefore, the total amount of depreciation written off on the two machines till they were discarded is Rs.7,717.50 + Rs.5,788.125 = Rs.15,118.
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On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer?
Question Description
On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct 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 October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct 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 October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer?.
On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct 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 October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct 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 October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer?.
Solutions for On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct 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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On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer?, a detailed solution for On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice On October 1, 2001 two machines costing Rs.20,000 and Rs.15,000 respectively, were purchased.On March 31, 2005, both the machines had to be discarded because of damage and had to be replaced by two machines costing Rs.25,000 and Rs.20,000 respectively.One of the discarded machine was sold for Rs.10,000 and against the other it was expected that Rs.5,000 would be realized. The firm provides depreciation @15% on written down valueQ.The total amount of depreciation written off on the two machines till they were discarded isa)Rs.21,000b)Rs.15,118c)Rs.13,595d)Rs.18,194Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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