CA Foundation Exam > CA Foundation Questions > Consider the following information:I. Rate of...
Start Learning for Free
Consider the following information:
I. Rate of depreciation under the written down method = 20%.
II. Original cost of the asset = Rs.1,00,000.
III. Residual value of the asset at the end of useful life = Rs.40,960.
II. Original cost of the asset = Rs.1,00,000.
III. Residual value of the asset at the end of useful life = Rs.40,960.
Q.Depreciation for 2nd year =
- a)20,000
- b)16,000
- c)12,800
- d)10,240
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following information:I. Rate of depreciation under the w...
Calculation of Depreciation:
Written Down Value (WDV) at the beginning of the year = Original Cost - Depreciation charged till last year
= Rs.1,00,000 - Rs.20,000 = Rs.80,000
Depreciation for the current year = WDV at the beginning of the year * Rate of Depreciation
= Rs.80,000 * 20/100 = Rs.16,000
Therefore, the depreciation for the 2nd year is Rs.16,000.
Explanation:
The given information states that the rate of depreciation under the written down method is 20%, the original cost of the asset is Rs.1,00,000, and the residual value of the asset at the end of its useful life is Rs.40,960.
The written down method of depreciation is a method of calculating depreciation where the depreciation is charged on the WDV of the asset at the beginning of the year. The rate of depreciation is applied to the WDV to calculate the depreciation for the current year.
In this case, the WDV at the beginning of the 2nd year is Rs.80,000, which is the original cost of the asset minus the depreciation charged till the end of the 1st year, which is Rs.20,000. Therefore, the depreciation for the 2nd year is calculated as Rs.80,000 multiplied by 20/100, which is equal to Rs.16,000.
Hence, the correct option is B, i.e., Rs.16,000.
Written Down Value (WDV) at the beginning of the year = Original Cost - Depreciation charged till last year
= Rs.1,00,000 - Rs.20,000 = Rs.80,000
Depreciation for the current year = WDV at the beginning of the year * Rate of Depreciation
= Rs.80,000 * 20/100 = Rs.16,000
Therefore, the depreciation for the 2nd year is Rs.16,000.
Explanation:
The given information states that the rate of depreciation under the written down method is 20%, the original cost of the asset is Rs.1,00,000, and the residual value of the asset at the end of its useful life is Rs.40,960.
The written down method of depreciation is a method of calculating depreciation where the depreciation is charged on the WDV of the asset at the beginning of the year. The rate of depreciation is applied to the WDV to calculate the depreciation for the current year.
In this case, the WDV at the beginning of the 2nd year is Rs.80,000, which is the original cost of the asset minus the depreciation charged till the end of the 1st year, which is Rs.20,000. Therefore, the depreciation for the 2nd year is calculated as Rs.80,000 multiplied by 20/100, which is equal to Rs.16,000.
Hence, the correct option is B, i.e., Rs.16,000.
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
Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer?
Question Description
Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct 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 Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct 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 Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer?.
Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct 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 Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct 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 Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer?.
Solutions for Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. 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 Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following information:I. Rate of depreciation under the written down method = 20%.II. Original cost of the asset = Rs.1,00,000.III. Residual value of the asset at the end of useful life = Rs.40,960.Q.Depreciation for 2nd year =a)20,000b)16,000c)12,800d)10,240Correct answer is option 'B'. 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