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hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72,800 and paid rs. 2,200 on its installation. on 1.4,2002 another machinery form rs. 25,000 was acquired. on 1.4.2001, the first machinery was sold at rs. 50,000 and on the same date a fresh machinery was purchased at a cost of rs. 45,000, depreciation was annually provided on 31 march at 10%p.a. on written down value. on 1.4.2002 however,firm decided to change the method of providing depreciation and adopted the method of providing deprecation @ 10% pa on the original cost with retrospective effect. ascertain the value of machinery as on 31.3.2003
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hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72...
Solution:

Given data:

- Purchase of machinery on 1.4.2000 = Rs. 72,800
- Installation cost = Rs. 2,200
- Purchase of machinery on 1.4.2002 = Rs. 25,000
- Sale of machinery on 1.4.2001 = Rs. 50,000
- Purchase of new machinery on 1.4.2001 = Rs. 45,000
- Depreciation rate = 10% p.a. on written down value method
- Change in depreciation method on 1.4.2002

Computation of Depreciation:

- Depreciation for the year 2000-2001 = (72,800 + 2,200) x 10% = Rs. 7,480
- Written down value of machinery as on 31.3.2001 = 72,800 + 2,200 - 7,480 = Rs. 67,520
- Depreciation for the year 2001-2002 = 67,520 x 10% = Rs. 6,752
- Written down value of machinery as on 31.3.2002 = 67,520 - 6,752 = Rs. 60,768
- Depreciation for the year 2002-2003 (as per new method) = 72,800 x 10% = Rs. 7,280
- Written down value of machinery as on 31.3.2003 = 72,800 - 7,280 = Rs. 65,520

Computation of Gain/Loss on Sale of Machinery:

- Book value of machinery sold on 1.4.2001 = 67,520 x 10% = Rs. 6,752
- Gain/Loss on sale = Sale value - Book value = 50,000 - 6,752 = Rs. 43,248
- Since the sale value is less than the book value, there is a loss of Rs. 43,248

Computation of Depreciation Adjustment:

- Depreciation adjustment for the year 2000-2001 = 72,800 x (10% - 10%) = Rs. 0
- Depreciation adjustment for the year 2001-2002 = 67,520 x (10% - 10%) = Rs. 0
- Depreciation adjustment for the year 2002-2003 = 72,800 x (10% - 10%) = Rs. 0

Final Value of Machinery as on 31.3.2003:

- Value of machinery as on 31.3.2003 = Rs. 65,520

Conclusion:

The value of machinery as on 31.3.2003 is Rs. 65,520, after considering the purchase, sale, and depreciation adjustments made during the relevant period.
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hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72...
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hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72,800 and paid rs. 2,200 on its installation. on 1.4,2002 another machinery form rs. 25,000 was acquired. on 1.4.2001, the first machinery was sold at rs. 50,000 and on the same date a fresh machinery was purchased at a cost of rs. 45,000, depreciation was annually provided on 31 march at 10%p.a. on written down value. on 1.4.2002 however,firm decided to change the method of providing depreciation and adopted the method of providing deprecation @ 10% pa on the original cost with retrospective effect. ascertain the value of machinery as on 31.3.2003 Related: ICAI Notes 5: Depreciation Accounting- 1?
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hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72,800 and paid rs. 2,200 on its installation. on 1.4,2002 another machinery form rs. 25,000 was acquired. on 1.4.2001, the first machinery was sold at rs. 50,000 and on the same date a fresh machinery was purchased at a cost of rs. 45,000, depreciation was annually provided on 31 march at 10%p.a. on written down value. on 1.4.2002 however,firm decided to change the method of providing depreciation and adopted the method of providing deprecation @ 10% pa on the original cost with retrospective effect. ascertain the value of machinery as on 31.3.2003 Related: ICAI Notes 5: Depreciation Accounting- 1? 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 hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72,800 and paid rs. 2,200 on its installation. on 1.4,2002 another machinery form rs. 25,000 was acquired. on 1.4.2001, the first machinery was sold at rs. 50,000 and on the same date a fresh machinery was purchased at a cost of rs. 45,000, depreciation was annually provided on 31 march at 10%p.a. on written down value. on 1.4.2002 however,firm decided to change the method of providing depreciation and adopted the method of providing deprecation @ 10% pa on the original cost with retrospective effect. ascertain the value of machinery as on 31.3.2003 Related: ICAI Notes 5: Depreciation Accounting- 1? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for hanuman enterprises purchased on 1.4.2000 certain machinery for rs. 72,800 and paid rs. 2,200 on its installation. on 1.4,2002 another machinery form rs. 25,000 was acquired. on 1.4.2001, the first machinery was sold at rs. 50,000 and on the same date a fresh machinery was purchased at a cost of rs. 45,000, depreciation was annually provided on 31 march at 10%p.a. on written down value. on 1.4.2002 however,firm decided to change the method of providing depreciation and adopted the method of providing deprecation @ 10% pa on the original cost with retrospective effect. ascertain the value of machinery as on 31.3.2003 Related: ICAI Notes 5: Depreciation Accounting- 1?.
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