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A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)?
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A company purchased a machinery for 100000 on 1 june 2014. Another mac...
Calculation of Depreciation:
The company charges depreciation at a rate of 20% on the diminishing (written down) value method. This means that the depreciation expense is calculated based on the net book value of the machinery at the beginning of each accounting period.
Depreciation for the Machinery purchased in 2014:
The machinery purchased in 2014 for $100,000 has been in use for 2 years before it was sold on December 31, 2016. To calculate the depreciation expense for each year, we need to determine the net book value at the beginning of each year.
Year 1:
Net Book Value at the beginning = Cost of Machinery
Depreciation Expense = 20% * Net Book Value
Year 2:
Net Book Value at the beginning = Cost of Machinery - Depreciation Expense of Year 1
Depreciation Expense = 20% * Net Book Value
Depreciation for the Machinery purchased in 2015:
The machinery purchased in 2015 for $20,000 has been in use for 1 year before the end of the accounting period. The depreciation expense is calculated in the same way as for the machinery purchased in 2014.
Selling the Machinery purchased in 2014:
The machinery purchased in 2014 was sold on December 31, 2016, at a loss of $10,000. The loss on sale of an asset is calculated as the difference between the selling price and the net book value of the asset at the time of sale.
Calculation of Net Book Value at the time of Sale:
Net Book Value at the time of Sale = Cost of Machinery - Accumulated Depreciation
Calculation of Loss on Sale:
Loss on Sale = Selling Price - Net Book Value at the time of Sale
Summary:
- The company purchased machinery for $100,000 in 2014 and $20,000 in 2015.
- Depreciation is charged at a rate of 20% on the diminishing (written down) value method.
- The machinery purchased in 2014 was sold on December 31, 2016, at a loss of $10,000.
- Net Book Value at the time of sale is calculated as the cost of machinery minus accumulated depreciation.
- The loss on sale is calculated as the difference between the selling price and the net book value at the time of sale.
The company charges depreciation at a rate of 20% on the diminishing (written down) value method. This means that the depreciation expense is calculated based on the net book value of the machinery at the beginning of each accounting period.
Depreciation for the Machinery purchased in 2014:
The machinery purchased in 2014 for $100,000 has been in use for 2 years before it was sold on December 31, 2016. To calculate the depreciation expense for each year, we need to determine the net book value at the beginning of each year.
Year 1:
Net Book Value at the beginning = Cost of Machinery
Depreciation Expense = 20% * Net Book Value
Year 2:
Net Book Value at the beginning = Cost of Machinery - Depreciation Expense of Year 1
Depreciation Expense = 20% * Net Book Value
Depreciation for the Machinery purchased in 2015:
The machinery purchased in 2015 for $20,000 has been in use for 1 year before the end of the accounting period. The depreciation expense is calculated in the same way as for the machinery purchased in 2014.
Selling the Machinery purchased in 2014:
The machinery purchased in 2014 was sold on December 31, 2016, at a loss of $10,000. The loss on sale of an asset is calculated as the difference between the selling price and the net book value of the asset at the time of sale.
Calculation of Net Book Value at the time of Sale:
Net Book Value at the time of Sale = Cost of Machinery - Accumulated Depreciation
Calculation of Loss on Sale:
Loss on Sale = Selling Price - Net Book Value at the time of Sale
Summary:
- The company purchased machinery for $100,000 in 2014 and $20,000 in 2015.
- Depreciation is charged at a rate of 20% on the diminishing (written down) value method.
- The machinery purchased in 2014 was sold on December 31, 2016, at a loss of $10,000.
- Net Book Value at the time of sale is calculated as the cost of machinery minus accumulated depreciation.
- The loss on sale is calculated as the difference between the selling price and the net book value at the time of sale.
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A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)?
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A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)? 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 company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)?.
A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)? 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 company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company purchased a machinery for 100000 on 1 june 2014. Another machine cost 20000 was purchased on 1 sep 2015 on 31 december 2016 the machine purchase in 2014 was sold at loss 10000 the company charge deprication 20% on diminishing (written down value method)?.
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