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Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.?
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Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant...
Value of Allowable Depreciation Calculation
Calculation of Depreciation for 2019-2020:
- Written Down Value (WDV) of Plant and Machinery on 1-4-2019 = Rs 80,000
- Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019
- Total WDV = Rs 80,000 + Rs 80,000 = Rs 1,60,000
- Rate of Depreciation = 15%
- Depreciation for the year = 15% * Rs 1,60,000 = Rs 24,000
Explanation:
- Depreciation refers to the decrease in the value of a fixed asset over time due to wear and tear, obsolescence, or any other reason.
- In this case, the plant and machinery have a Written Down Value (WDV) of Rs 80,000 on 1-4-2019. This means that the asset has already undergone some depreciation in the previous years.
- During December 2019, additional plant and machinery costing Rs 80,000 has been installed. This increases the total WDV of the asset to Rs 1,60,000.
- The rate of depreciation is 15%, which is the percentage of the WDV that can be claimed as a deductible expense for tax purposes.
- The depreciation for the year is calculated as 15% of the total WDV, which comes to Rs 24,000.
- This amount can be claimed as a deduction from the taxable income for the year, which will reduce the tax liability for the business.
Conclusion:
- Depreciation is an important concept in accounting and taxation, as it allows businesses to account for the wear and tear of their assets over time.
- By claiming depreciation as a deductible expense, businesses can reduce their tax liability and improve their bottom line.
- In this case, the value of allowable depreciation for the year is Rs 24,000, which can be claimed as a deduction from taxable income.
Calculation of Depreciation for 2019-2020:
- Written Down Value (WDV) of Plant and Machinery on 1-4-2019 = Rs 80,000
- Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019
- Total WDV = Rs 80,000 + Rs 80,000 = Rs 1,60,000
- Rate of Depreciation = 15%
- Depreciation for the year = 15% * Rs 1,60,000 = Rs 24,000
Explanation:
- Depreciation refers to the decrease in the value of a fixed asset over time due to wear and tear, obsolescence, or any other reason.
- In this case, the plant and machinery have a Written Down Value (WDV) of Rs 80,000 on 1-4-2019. This means that the asset has already undergone some depreciation in the previous years.
- During December 2019, additional plant and machinery costing Rs 80,000 has been installed. This increases the total WDV of the asset to Rs 1,60,000.
- The rate of depreciation is 15%, which is the percentage of the WDV that can be claimed as a deductible expense for tax purposes.
- The depreciation for the year is calculated as 15% of the total WDV, which comes to Rs 24,000.
- This amount can be claimed as a deduction from the taxable income for the year, which will reduce the tax liability for the business.
Conclusion:
- Depreciation is an important concept in accounting and taxation, as it allows businesses to account for the wear and tear of their assets over time.
- By claiming depreciation as a deductible expense, businesses can reduce their tax liability and improve their bottom line.
- In this case, the value of allowable depreciation for the year is Rs 24,000, which can be claimed as a deduction from taxable income.
Community Answer
Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant...
Installed = ( total cost value+plant and machinery ) = =( 80,000 + 80,000) = = 1,60,000 depreciation = 1,60,000/ 15% = = 10.666//
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Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.?
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Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.? 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 Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.?.
Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.? 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 Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Written Down Value of Plant and Machinery on 1-4-2019 Rs 80,000. Plant and Machinery costing Rs 80,000 has been installed during the month of December 2019. Rate of Depreciation is 15%. Calculate value of allowable depreciation.?.
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