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Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Installation expenses were Rs.10,000. Its residual value after 10 year is 5,000. On 1-03-2009 expenses on its repairs were incurred to the extent of Rs.2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. Calculate the amount of depreciation for the curren?
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Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Ins...
Calculation of Depreciation for the Current Year


  • Cost of Machine: Rs.1,20,000

  • Installation Expenses: Rs.10,000

  • Total Cost: Rs.1,30,000

  • Residual Value: Rs.5,000

  • Useful Life: 10 years



Calculation of Depreciation per Year

Depreciation per year = (Total Cost - Residual Value) / Useful Life

= (Rs.1,30,000 - Rs.5,000) / 10

= Rs.12,500

Depreciation for the Current Year

Depreciation for the current year can be calculated from 1st April 2020 to 31st March 2021.

= Depreciation per year x (Number of months in the year / 12)

= Rs.12,500 x (12 / 12)

= Rs.12,500

However, since repairs were incurred on 1st March 2020, depreciation will only be charged for 11 months.

Depreciation for the current year = Rs.12,500 x (11 / 12)

= Rs.11,458.33

Therefore, the amount of depreciation for the current year is Rs.11,458.33.
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Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Ins...
Here the Amount of Depreciation is 3125
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Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Installation expenses were Rs.10,000. Its residual value after 10 year is 5,000. On 1-03-2009 expenses on its repairs were incurred to the extent of Rs.2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. Calculate the amount of depreciation for the curren?
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Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Installation expenses were Rs.10,000. Its residual value after 10 year is 5,000. On 1-03-2009 expenses on its repairs were incurred to the extent of Rs.2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. Calculate the amount of depreciation for the curren? 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 Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Installation expenses were Rs.10,000. Its residual value after 10 year is 5,000. On 1-03-2009 expenses on its repairs were incurred to the extent of Rs.2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. Calculate the amount of depreciation for the curren? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ambuja Cement Ltd. Purchased a machine on 1-1-2009 for Rs1,20,000. Installation expenses were Rs.10,000. Its residual value after 10 year is 5,000. On 1-03-2009 expenses on its repairs were incurred to the extent of Rs.2,000. Depreciation is provided under straight line method. Books are closed on 31st March every year. Calculate the amount of depreciation for the curren?.
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