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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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.
Depreciation provided in 2002-03 = _________.
Depreciation provided in 2002-03 = _________.
- a)Rs. 56,700
- b)Rs. 63,000
- c)Rs. 70,000
- d)Rs. 77,778
Correct answer is option 'C'. Can you explain this answer?
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On April 01, 2004 the debit balance of the machinery account of A Ltd....
Calculation of Depreciation Provided in 2002-03:
First, we need to calculate the depreciation provided under the diminishing balance method for the period from April 01, 2002, to April 01, 2003.
Step 1: Calculate the number of years between April 01, 2002, and April 01, 2003:
Number of years = April 01, 2003 - April 01, 2002 = 1 year
Step 2: Calculate the depreciation rate:
Depreciation rate = 10% per annum
Step 3: Calculate the depreciation provided for 1 year:
Depreciation provided = (Cost of machinery * Depreciation rate) / 100
Given that the cost of machinery is not provided, we need to calculate it.
Step 4: Calculate the cost of machinery:
Cost of machinery = Debit balance of machinery account on April 01, 2004 - Depreciation provided under diminishing balance method for the period from April 01, 2002, to April 01, 2003
Given that the debit balance of the machinery account on April 01, 2004, is Rs. 5,67,000.
Substituting the values in the formula:
Cost of machinery = Rs. 5,67,000 - Depreciation provided for 1 year
Step 5: Calculate the depreciation provided for 1 year:
Depreciation provided = (Cost of machinery * Depreciation rate) / 100
Given that the depreciation rate is 10%.
Substituting the values in the formula:
Depreciation provided = (Cost of machinery * 10) / 100
Step 6: Calculate the depreciation provided in 2002-03:
Depreciation provided in 2002-03 = Depreciation provided for 1 year * Number of years
Substituting the values in the formula:
Depreciation provided in 2002-03 = (Depreciation provided * 1)
Therefore, the depreciation provided in 2002-03 is Rs. 70,000 (Option C).
First, we need to calculate the depreciation provided under the diminishing balance method for the period from April 01, 2002, to April 01, 2003.
Step 1: Calculate the number of years between April 01, 2002, and April 01, 2003:
Number of years = April 01, 2003 - April 01, 2002 = 1 year
Step 2: Calculate the depreciation rate:
Depreciation rate = 10% per annum
Step 3: Calculate the depreciation provided for 1 year:
Depreciation provided = (Cost of machinery * Depreciation rate) / 100
Given that the cost of machinery is not provided, we need to calculate it.
Step 4: Calculate the cost of machinery:
Cost of machinery = Debit balance of machinery account on April 01, 2004 - Depreciation provided under diminishing balance method for the period from April 01, 2002, to April 01, 2003
Given that the debit balance of the machinery account on April 01, 2004, is Rs. 5,67,000.
Substituting the values in the formula:
Cost of machinery = Rs. 5,67,000 - Depreciation provided for 1 year
Step 5: Calculate the depreciation provided for 1 year:
Depreciation provided = (Cost of machinery * Depreciation rate) / 100
Given that the depreciation rate is 10%.
Substituting the values in the formula:
Depreciation provided = (Cost of machinery * 10) / 100
Step 6: Calculate the depreciation provided in 2002-03:
Depreciation provided in 2002-03 = Depreciation provided for 1 year * Number of years
Substituting the values in the formula:
Depreciation provided in 2002-03 = (Depreciation provided * 1)
Therefore, the depreciation provided in 2002-03 is Rs. 70,000 (Option C).
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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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. 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 made necessary adjustment in respect of depreciation due to the change in the method in the yea 2004-2005.Depreciation provided in 2002-03 = _________.a)Rs. 56,700b)Rs. 63,000c)Rs. 70,000d)Rs. 77,778Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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