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A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.?
Most Upvoted Answer
A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and ...
Machinery Losses: 20k
To calculate the net profit or loss from the transactions involving the machinery, we need to track the purchases, sales, and associated costs. Let's break down the information provided:
January 1, 2015:
Purchased an old machinery for *37,000.
Spent #3,000 on overhauling the machinery.
July 15, 2016:
Purchased another machine for *10,000.
July 1, 2017:
Sold the machinery purchased on January 1, 2015, for *28,000.
Purchased a new machinery for *25,000.
July 1, 2018:
Sold the machinery purchased on July 15, 2016, for *2,000.
Let's calculate the net profit or loss for each transaction:
Machinery purchased on January 1, 2015:
Cost: *37,000
Overhauling cost: #3,000
Total cost: *37,000 + #3,000 = *40,000
Machinery purchased on July 15, 2016:
Cost: *10,000
Machinery sold on July 1, 2017:
Sale price: *28,000
Initial cost: *40,000
Profit/Loss: *28,000 - *40,000 = -*12,000 (Loss)
New machinery purchased on July 1, 2017:
Cost: *25,000
Machinery sold on July 1, 2018:
Sale price: *2,000
Initial cost: *10,000
Profit/Loss: *2,000 - *10,000 = -*8,000 (Loss)
To calculate the overall net profit or loss, we sum up the individual profits and losses:
Net profit/loss = (Loss from sale on July 1, 2017) + (Loss from sale on July 1, 2018)
Net profit/loss = (-*12,000) + (-*8,000)
Net profit/loss = -*20,000
Therefore, the firm incurred a net loss of *20,000 from the transactions involving the machinery.
To calculate the net profit or loss from the transactions involving the machinery, we need to track the purchases, sales, and associated costs. Let's break down the information provided:
January 1, 2015:
Purchased an old machinery for *37,000.
Spent #3,000 on overhauling the machinery.
July 15, 2016:
Purchased another machine for *10,000.
July 1, 2017:
Sold the machinery purchased on January 1, 2015, for *28,000.
Purchased a new machinery for *25,000.
July 1, 2018:
Sold the machinery purchased on July 15, 2016, for *2,000.
Let's calculate the net profit or loss for each transaction:
Machinery purchased on January 1, 2015:
Cost: *37,000
Overhauling cost: #3,000
Total cost: *37,000 + #3,000 = *40,000
Machinery purchased on July 15, 2016:
Cost: *10,000
Machinery sold on July 1, 2017:
Sale price: *28,000
Initial cost: *40,000
Profit/Loss: *28,000 - *40,000 = -*12,000 (Loss)
New machinery purchased on July 1, 2017:
Cost: *25,000
Machinery sold on July 1, 2018:
Sale price: *2,000
Initial cost: *10,000
Profit/Loss: *2,000 - *10,000 = -*8,000 (Loss)
To calculate the overall net profit or loss, we sum up the individual profits and losses:
Net profit/loss = (Loss from sale on July 1, 2017) + (Loss from sale on July 1, 2018)
Net profit/loss = (-*12,000) + (-*8,000)
Net profit/loss = -*20,000
Therefore, the firm incurred a net loss of *20,000 from the transactions involving the machinery.
Community Answer
A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and ...
Calculation of Machinery transactions:
1. Initial Machinery purchase on 1 January, 2015:
- Purchase cost: * 37,000
- Overhauling cost: # 3,000
- Total cost: * 40,000
2. Second Machinery purchase on 15 July 2016:
- Purchase cost: * 10,000
3. Sale of Machinery on 1 July 2017:
- Sale price: * 28,000
- Profit on sale: 28,000 - 40,000 = * 12,000
4. Third Machinery purchase on 1 July, 2017:
- Purchase cost: * 25,000
5. Sale of Second Machinery on 1 July 2018:
- Sale price: * 2,000
- Loss on sale: 2,000 - 10,000 = * 8,000
Explanation:
- The initial machinery purchased in 2015 was overhauled for # 3,000, making the total cost * 40,000.
- The second machinery was purchased in 2016 for * 10,000.
- In 2017, the first machinery was sold for * 28,000, resulting in a profit of * 12,000. A new machinery was purchased for * 25,000 on the same day.
- In 2018, the second machinery was sold for * 2,000, incurring a loss of * 8,000.
Overall, the firm made a profit of * 12,000 on the sale of the first machinery but incurred a loss of * 8,000 on the sale of the second machinery. It is essential for the firm to carefully evaluate such transactions to ensure profitability and efficiency in machinery management.
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A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.?
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A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? 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 A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.?.
A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? 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 A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.?.
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A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.?, a detailed solution for A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? has been provided alongside types of A Firm purchased an old Machinery for * 37,000 on 1 January, 2015 and spent # 3,000 on its overhauling. On 15 July 2016, another machine was purchased for 10,000. On 1st July 2017, the machinery which was purchased on 1st January 2015, was sold for 28,000 and the same day a new machinery costing * 25,000 was purchased. On 1 July, 2018, the machine which was purchased on 1st July, 2016 was sold for 2,000.? theory, EduRev gives you an
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