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Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004?
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Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutle...
Depreciation Calculation for Glass, Cutlery, etc.

Balance on 01.01.2004 = Rs. 28,000
Purchases during the year = Rs. 16,000

Depreciation to be charged on assets:
- 1/5 of cost in the year of purchase
- 2/5 of cost in each of the next 2 years

Stock as on 01.01.2004:
- 1/2 was one year old
- 1/2 was two years old

Depreciation for 2004 = [1/5 * (16,000/2)] + [2/5 * (16,000/2)] = Rs. 4,800

Explanation:

To calculate the depreciation for the year 2004, we need to apply the straight-line method. According to the method, the depreciation charge is spread evenly over the useful life of the asset. In this case, the useful life of the glass, cutlery, etc. is three years.

We are given that 1/5 of the cost of the asset is to be written off in the year of purchase, and 2/5 of the cost is to be written off in each of the next two years. Therefore, we need to calculate the cost of the asset purchased in 2004 and allocate the depreciation accordingly.

The cost of the asset purchased in 2004 is Rs. 16,000. Since 1/5 of the cost is to be written off in the year of purchase, we calculate 1/5 of half the cost (since half the stock is one year old) and add it to 2/5 of half the cost (since half the stock is two years old) to arrive at the depreciation charge for 2004.

Therefore, the depreciation charge for 2004 is Rs. 4,800.
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Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutle...
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Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004?
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Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004? 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 Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004?.
Solutions for Glass, cutlery etc.: balance on 01.01.2004 is rs. 28,000. glass, cutlery, etc. purchased during the year rs. 16,000. depreciation to be charged on the above assets is as follows- 1/5 of their values (cost) is to be written off in the year of purchase and 2/5th in each of the next 2 years. of the stock glass, cutlery, etc. as on 01.01.2004, 1/2 was one year old and 1/2 was 2 years old. purchases made on 1st january. use straight line method. depreciation for 2004? 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.
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