CA Foundation Exam  >  CA Foundation Questions  >  Jain Bros acquires a machine on 1st July 2018... Start Learning for Free
Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year?
Most Upvoted Answer
Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs a...
Depreciation Calculation for Jain Bros Machine

Original Cost: Rs. 14,00,000
Installation Cost: Rs. 1,00,000
Total Cost: Rs. 15,00,000

Depreciation Rate: 10% per annum

Depreciation for the Year 2018:
- Machine is acquired on 1st July 2018, so it is used for only 6 months in the year.
- Depreciation for 6 months = (10% * Rs. 14,00,000) * (6/12) = Rs. 70,000
- Depreciation for installation cost for 6 months = (10% * Rs. 1,00,000) * (6/12) = Rs. 5,000
- Total Depreciation for the Year 2018 = Rs. 75,000

Depreciation for the Year 2019:
- Depreciation for the year = 10% * Rs. 14,00,000 = Rs. 1,40,000
- Depreciation for installation cost for the year = 10% * Rs. 1,00,000 = Rs. 10,000
- Total Depreciation for the Year 2019 = Rs. 1,50,000

Depreciation for the Year 2020:
- Depreciation for the year = 10% * Rs. 14,00,000 = Rs. 1,40,000
- Depreciation for installation cost for the year = 10% * Rs. 1,00,000 = Rs. 10,000
- Total Depreciation for the Year 2020 = Rs. 1,50,000

Closing the Books:
- The books are closed at 31st December every year.
- So, the depreciation for the year is calculated till 31st December.
- The remaining value of the machine after depreciation is subtracted from the original cost and is shown in the books as the net book value.
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year?
Question Description
Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? 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 Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year?.
Solutions for Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? 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.
Here you can find the meaning of Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? defined & explained in the simplest way possible. Besides giving the explanation of Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year?, a detailed solution for Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? has been provided alongside types of Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? theory, EduRev gives you an ample number of questions to practice Jain Bros acquires a machine on 1st July 2018 at the cost of 14 lacs and spend one lakh on installation the form rights of depreciation at 10% per annum of original cost every year the books are closed at 31st December every year? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev