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A form purchased a machine for rupees 80000 on 1.4 .2000. it was depreciated at 10 % on written down value method. on 31. 3. 2002 they decided to change the method of depreciation under state line method from 1.4 .2002. Paper machinery account for all three years up to 1.4. 2003.?
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A form purchased a machine for rupees 80000 on 1.4 .2000. it was depre...
Depreciation of the Machine on Written Down Value Method (1.4.2000 - 31.3.2002)

Under the written down value method, the depreciation is calculated based on the initial cost of the machine and the rate of depreciation. In this case, the machine was purchased for rupees 80000 on 1.4.2000 and the rate of depreciation is 10%.

Calculation of Depreciation:
Year 1 (1.4.2000 - 31.3.2001):
Depreciation = Opening Value * Rate of Depreciation
= 80000 * 10% = 8000
Closing Value = Opening Value - Depreciation
= 80000 - 8000 = 72000

Year 2 (1.4.2001 - 31.3.2002):
Depreciation = Opening Value * Rate of Depreciation
= 72000 * 10% = 7200
Closing Value = Opening Value - Depreciation
= 72000 - 7200 = 64800

Depreciation of the Machine on Straight Line Method (1.4.2002 - 1.4.2003)

On 31.3.2002, the company decided to change the method of depreciation from the written down value method to the straight-line method. The straight-line method calculates depreciation by evenly distributing the cost of the asset over its useful life.

Calculation of Depreciation:
Cost of the Machine = 64800 (as of 31.3.2002)
Useful Life = 3 years

Annual Depreciation = Cost of the Machine / Useful Life
= 64800 / 3 = 21600 / year

Year 1 (1.4.2002 - 31.3.2003):
Depreciation = Annual Depreciation
= 21600

Closing Value = Opening Value - Depreciation
= 64800 - 21600 = 43200

Summary of Paper Machinery Account

1.4.2000 - 31.3.2001:
Opening Value: 80000
Depreciation: 8000
Closing Value: 72000

1.4.2001 - 31.3.2002:
Opening Value: 72000
Depreciation: 7200
Closing Value: 64800

1.4.2002 - 31.3.2003:
Opening Value: 64800
Depreciation: 21600
Closing Value: 43200

The Paper Machinery account shows the initial cost of the machine, the depreciation calculated under the written down value method for the first two years, and the depreciation calculated under the straight-line method for the third year. The closing value represents the net book value of the machine at the end of each year.
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A form purchased a machine for rupees 80000 on 1.4 .2000. it was depreciated at 10 % on written down value method. on 31. 3. 2002 they decided to change the method of depreciation under state line method from 1.4 .2002. Paper machinery account for all three years up to 1.4. 2003.?
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A form purchased a machine for rupees 80000 on 1.4 .2000. it was depreciated at 10 % on written down value method. on 31. 3. 2002 they decided to change the method of depreciation under state line method from 1.4 .2002. Paper machinery account for all three years up to 1.4. 2003.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A form purchased a machine for rupees 80000 on 1.4 .2000. it was depreciated at 10 % on written down value method. on 31. 3. 2002 they decided to change the method of depreciation under state line method from 1.4 .2002. Paper machinery account for all three years up to 1.4. 2003.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A form purchased a machine for rupees 80000 on 1.4 .2000. it was depreciated at 10 % on written down value method. on 31. 3. 2002 they decided to change the method of depreciation under state line method from 1.4 .2002. Paper machinery account for all three years up to 1.4. 2003.?.
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