Class 11 Exam > Class 11 Questions > A company purchased a machine for 35,00,000 (...
Start Learning for Free
A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.?
Most Upvoted Answer
A company purchased a machine for 35,00,000 (including a boiler worth ...
Machine A/c for Four Years
Initial Cost of Machine:
The company purchased a machine for 35,00,000, which includes a boiler worth 1,00,000.
Depreciation Calculation:
The company provides depreciation at a rate of 10% using the straight-line method.
To calculate annual depreciation, we use the formula:
Annual Depreciation = (Cost of Machine - Salvage Value) / Useful Life
Year 1:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the first year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the first year is 8,75,000.
Year 2:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the second year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the second year is also 8,75,000.
Year 3:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the third year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the third year is also 8,75,000.
Year 4:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the fourth year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the fourth year is also 8,75,000.
Discarding the Boiler:
After four years, the boiler became useless and was discarded for 20,000. Since the boiler was a part of the machine, we need to adjust the machine's value accordingly.
Machine Value after Four Years = Initial Cost of Machine - Total Depreciation + Value of Discarded Boiler
Machine Value after Four Years = 35,00,000 - (8,75,000 + 8,75,000 + 8,75,000 + 8,75,000) + 20,000
Machine Value after Four Years = 35,00,000 - 35,00,000 + 20,000 = 20,000
Machine A/c:
The machine account for four years can be summarized as follows:
Year | Depreciation | Accumulated Depreciation
-------------------------------------
1 | 8,75,000 | 8,75,000
2 | 8,75,000 | 17,50,000
3 | 8,75,000 | 26,25,000
4 | 8,75,000 | 35,00,000
4 | - | 35,00,000
4 |
Initial Cost of Machine:
The company purchased a machine for 35,00,000, which includes a boiler worth 1,00,000.
Depreciation Calculation:
The company provides depreciation at a rate of 10% using the straight-line method.
To calculate annual depreciation, we use the formula:
Annual Depreciation = (Cost of Machine - Salvage Value) / Useful Life
Year 1:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the first year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the first year is 8,75,000.
Year 2:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the second year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the second year is also 8,75,000.
Year 3:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the third year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the third year is also 8,75,000.
Year 4:
Cost of Machine: 35,00,000
Salvage Value: 0 (as it is the fourth year)
Useful Life: 4 years
Annual Depreciation = (35,00,000 - 0) / 4 = 8,75,000
The depreciation for the fourth year is also 8,75,000.
Discarding the Boiler:
After four years, the boiler became useless and was discarded for 20,000. Since the boiler was a part of the machine, we need to adjust the machine's value accordingly.
Machine Value after Four Years = Initial Cost of Machine - Total Depreciation + Value of Discarded Boiler
Machine Value after Four Years = 35,00,000 - (8,75,000 + 8,75,000 + 8,75,000 + 8,75,000) + 20,000
Machine Value after Four Years = 35,00,000 - 35,00,000 + 20,000 = 20,000
Machine A/c:
The machine account for four years can be summarized as follows:
Year | Depreciation | Accumulated Depreciation
-------------------------------------
1 | 8,75,000 | 8,75,000
2 | 8,75,000 | 17,50,000
3 | 8,75,000 | 26,25,000
4 | 8,75,000 | 35,00,000
4 | - | 35,00,000
4 |
Attention Class 11 Students!
To make sure you are not studying endlessly, EduRev has designed Class 11 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 11.
|
Explore Courses for Class 11 exam
|
|
Similar Class 11 Doubts
Top Courses for Class 11View all
A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.?
Question Description
A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.?.
A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? for Class 11 2024 is part of Class 11 preparation. The Question and answers have been prepared according to the Class 11 exam syllabus. Information about A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? covers all topics & solutions for Class 11 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.?.
Solutions for A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? in English & in Hindi are available as part of our courses for Class 11.
Download more important topics, notes, lectures and mock test series for Class 11 Exam by signing up for free.
Here you can find the meaning of A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? defined & explained in the simplest way possible. Besides giving the explanation of
A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.?, a detailed solution for A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? has been provided alongside types of A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? theory, EduRev gives you an
ample number of questions to practice A company purchased a machine for 35,00,000 (including a boiler worth for 1,00,000). Company provides depreciation @10% as per straight line method. After four years boiler became useless and it was discarded for 20,000. Prepare machine A/c for four years.? tests, examples and also practice Class 11 tests.
|
|
Explore Courses for Class 11 exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup