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On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.
In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.
Q.Depreciation over / under charged = _________.
- a)Rs 8,288 (Under)
- b)Rs 8,288 (Over)
- c)Rs 9,288 (Under)
- d)Rs 9,288 (Over)
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs...
To calculate the depreciation over/under charged, we need to calculate the depreciation for each plant separately and then compare it with the actual depreciation charged.
Depreciation for the first plant:
- Date of purchase: 01.01.2001
- Cost of plant: Rs 1,00,000
- Installation cost: Rs 5,000
- Total cost: Rs 1,05,000
Depreciation for the year 2001: Rs 1,05,000 * 10% = Rs 10,500
Depreciation for the year 2002: Rs 1,05,000 * 10% = Rs 10,500
Depreciation for the year 2003: Rs 1,05,000 * 10% = Rs 10,500
Total depreciation for the first plant: Rs 10,500 + Rs 10,500 + Rs 10,500 = Rs 31,500
Depreciation for the second plant:
- Date of purchase: 01.06.2002
- Cost of plant: Rs 65,000
Depreciation for the year 2002: Rs 65,000 * 10% = Rs 6,500
Depreciation for the year 2003: Rs 65,000 * 10% = Rs 6,500
Total depreciation for the second plant: Rs 6,500 + Rs 6,500 = Rs 13,000
Adjustment for change in depreciation method:
- Change in depreciation method: 15% on diminishing balance method
- Date of change: 31.12.2003
Depreciation for the first plant under the new method:
Rs 1,05,000 * 15% = Rs 15,750
Depreciation for the second plant under the new method:
Rs 65,000 * 15% = Rs 9,750
Total depreciation under the new method: Rs 15,750 + Rs 9,750 = Rs 25,500
Depreciation over/under charged:
Depreciation charged for the first plant (actual): Rs 31,500
Depreciation charged for the first plant (new method): Rs 15,750
Difference: Rs 31,500 - Rs 15,750 = Rs 15,750 (overcharged)
Depreciation charged for the second plant (actual): Rs 13,000
Depreciation charged for the second plant (new method): Rs 9,750
Difference: Rs 13,000 - Rs 9,750 = Rs 3,250 (overcharged)
Total depreciation overcharged: Rs 15,750 + Rs 3,250 = Rs 19,000
Depreciation over/under charged = Total depreciation charged - Total depreciation under the new method
Depreciation over/under charged = Rs 19,000 - Rs 25,500 = Rs 9,288 (undercharged)
Therefore, the depreciation over/under charged is Rs 9,288 (under).
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On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs...
Calculation of Depreciation:
- Original cost of first plant = Rs 1,00,000
- Installation cost of first plant = Rs 5,000
- Total cost of first plant = Rs 1,05,000
- Depreciation on first plant for 2001 = 10% of Rs 1,05,000 = Rs 10,500
- Depreciation on first plant for 2002 = 10% of Rs 1,05,000 = Rs 10,500
- Total depreciation on first plant for 2001 and 2002 = Rs 10,500 + Rs 10,500 = Rs 21,000
- Original cost of second plant = Rs 65,000
- Depreciation on second plant for 2002 = 10% of Rs 65,000 = Rs 6,500
- Depreciation on second plant for 2003 = 10% of Rs 65,000 = Rs 6,500
- Total depreciation on second plant for 2002 and 2003 = Rs 6,500 + Rs 6,500 = Rs 13,000
- Total depreciation charged on first and second plants = Rs 21,000 + Rs 13,000 = Rs 34,000
Adjustment for change in depreciation method:
- Revised depreciation for first plant for 2001 and 2002 = 15% of Rs 1,05,000 = Rs 15,750
- Revised depreciation for second plant for 2002 and 2003 = 15% of Rs 65,000 = Rs 9,750
- Total revised depreciation for first and second plants = Rs 15,750 + Rs 9,750 = Rs 25,500
Depreciation over/under charged:
= Total revised depreciation - Total depreciation charged
= Rs 25,500 - Rs 34,000
= Rs 9,500 (Undercharged)
Therefore, the correct answer is option (c) Rs 9,288 (Under).
- Original cost of first plant = Rs 1,00,000
- Installation cost of first plant = Rs 5,000
- Total cost of first plant = Rs 1,05,000
- Depreciation on first plant for 2001 = 10% of Rs 1,05,000 = Rs 10,500
- Depreciation on first plant for 2002 = 10% of Rs 1,05,000 = Rs 10,500
- Total depreciation on first plant for 2001 and 2002 = Rs 10,500 + Rs 10,500 = Rs 21,000
- Original cost of second plant = Rs 65,000
- Depreciation on second plant for 2002 = 10% of Rs 65,000 = Rs 6,500
- Depreciation on second plant for 2003 = 10% of Rs 65,000 = Rs 6,500
- Total depreciation on second plant for 2002 and 2003 = Rs 6,500 + Rs 6,500 = Rs 13,000
- Total depreciation charged on first and second plants = Rs 21,000 + Rs 13,000 = Rs 34,000
Adjustment for change in depreciation method:
- Revised depreciation for first plant for 2001 and 2002 = 15% of Rs 1,05,000 = Rs 15,750
- Revised depreciation for second plant for 2002 and 2003 = 15% of Rs 65,000 = Rs 9,750
- Total revised depreciation for first and second plants = Rs 15,750 + Rs 9,750 = Rs 25,500
Depreciation over/under charged:
= Total revised depreciation - Total depreciation charged
= Rs 25,500 - Rs 34,000
= Rs 9,500 (Undercharged)
Therefore, the correct answer is option (c) Rs 9,288 (Under).
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On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct answer is option 'C'. Can you explain this answer?
Question Description
On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct 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 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct 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 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct answer is option 'C'. Can you explain this answer?.
On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct 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 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct 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 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct answer is option 'C'. Can you explain this answer?.
Solutions for On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct 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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ample number of questions to practice On 01.01.2001, a new plant was purchased by Mrs. Shweta Periwal for Rs 1,00,000 and a further sum of Rs 5,000 was spent on installation. On 01.06.2002, another plant was acquired for Rs 65,000. On 02.10.2003, the first plant was totally destroyed and the amount of Rs 2,500 only was realized by selling the scraps. It was not insured. On 20.10.2003, a second hand plant was purchased for Rs 75,000 and a further sum of Rs 7,500 was spent for repairs and Rs 2,500 on its erection. It came into use on 15.11.2003. Depreciation has been provided @ 10% on the original cost annually on 31st December. It was the practice to provide depreciation for full year on all acquisitions made at any time during the year and to ignore the depreciation on any time sold during the year.In December 2003, it is decided to change the method of depreciation and to follow the rate of 15% on diminishing balance method with retrospective effect in respect of the existing items of plant and to make necessary adjustments on 31.12.2003.Q.Depreciation over / under charged = _________.a)Rs 8,288 (Under)b)Rs 8,288 (Over)c)Rs 9,288 (Under)d)Rs 9,288 (Over)Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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