CA Foundation Exam > CA Foundation Questions > Amit Ltd. purchased a machine on 01.01.2003 f...
Start Learning for Free
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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.
- a)13000
- b)17000
- c)21000
- d)25000
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Amit Ltd. purchased a machine on 01.01.2003 for Rs. 1,20,000. Installa...
There are two methods of finding out the depreciation under SLM method
(1) formula method
Depreciation = (cost- scrap value ) /
estimated life span
(2) rate method
depreciation = cost * rate/100
#### if in the question you have given the information of both type of methods then always use RATE method because it is our priority...
(1) formula method
Depreciation = (cost- scrap value ) /
estimated life span
(2) rate method
depreciation = cost * rate/100
#### if in the question you have given the information of both type of methods then always use RATE method because it is our priority...
Free Test
FREE
| Start Free Test |
Community Answer
Amit Ltd. purchased a machine on 01.01.2003 for Rs. 1,20,000. Installa...
Calculation of Annual Depreciation:
- Cost of the machine = Rs. 1,20,000
- Installation expenses = Rs. 10,000
- Total cost = Rs. 1,30,000
- Residual value after 5 years = Rs. 5,000
- Depreciation rate = 10%
Annual Depreciation Calculation:
- Depreciable amount = Cost of the machine + Installation expenses - Residual value
- Depreciable amount = Rs. 1,30,000 - Rs. 5,000 = Rs. 1,25,000
- Annual Depreciation = Depreciable amount / Useful life in years
- Useful life = 5 years
- Annual Depreciation = Rs. 1,25,000 / 5 = Rs. 25,000
However, repairs expenses incurred during the year should be considered. Since repairs were done on 01.07.2003, only half of the year's depreciation will be charged.
- Half-year Depreciation = Annual Depreciation / 2 = Rs. 25,000 / 2 = Rs. 12,500
- Adjusted Annual Depreciation = Rs. 25,000 - Rs. 2,000 = Rs. 13,000
Therefore, the correct answer is option A) Rs. 13,000.
- Cost of the machine = Rs. 1,20,000
- Installation expenses = Rs. 10,000
- Total cost = Rs. 1,30,000
- Residual value after 5 years = Rs. 5,000
- Depreciation rate = 10%
Annual Depreciation Calculation:
- Depreciable amount = Cost of the machine + Installation expenses - Residual value
- Depreciable amount = Rs. 1,30,000 - Rs. 5,000 = Rs. 1,25,000
- Annual Depreciation = Depreciable amount / Useful life in years
- Useful life = 5 years
- Annual Depreciation = Rs. 1,25,000 / 5 = Rs. 25,000
However, repairs expenses incurred during the year should be considered. Since repairs were done on 01.07.2003, only half of the year's depreciation will be charged.
- Half-year Depreciation = Annual Depreciation / 2 = Rs. 25,000 / 2 = Rs. 12,500
- Adjusted Annual Depreciation = Rs. 25,000 - Rs. 2,000 = Rs. 13,000
Therefore, the correct answer is option A) Rs. 13,000.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Top Courses for CA FoundationView all
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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer?
Question Description
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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer?, a detailed solution 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer? has been provided alongside types 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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
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 under straight line method. Depreciation rate = 10%. Annual Depreciation = _________.a)13000b)17000c)21000d)25000Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup