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A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1,4,2010, it was found that machine is in a good condition and will be used in the production for another 10 years. Find The amount at depreciation for the year ending 31.3.2011?
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A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on s...
**Depreciation Calculation for the Year Ending 31.3.2011**
To calculate the depreciation for the year ending 31.3.2011, we need to consider the following information:
1. Purchase Date: 1.4.2008
2. Purchase Cost: Rs. 10,00,000
3. Useful Life: 10 years
4. Condition: Good
5. Extended Useful Life: 10 years
**Step 1: Determine the Annual Depreciation Rate**
The annual depreciation rate can be calculated by dividing the cost of the machine by its useful life. In this case, the cost of the machine is Rs. 10,00,000 and the useful life is 10 years. Therefore, the annual depreciation rate is:
Annual Depreciation Rate = Cost of the Machine / Useful Life
= Rs. 10,00,000 / 10
= Rs. 1,00,000 per year
**Step 2: Calculate the Depreciation Expense for the Year Ending 31.3.2011**
Since the machine was found to be in good condition on 1.4.2010 and will be used for another 10 years, the depreciation expense for the year ending 31.3.2011 can be calculated as follows:
Depreciation Expense = Annual Depreciation Rate * Number of Years of Usage
= Rs. 1,00,000 * 1
= Rs. 1,00,000
Therefore, the depreciation expense for the year ending 31.3.2011 is Rs. 1,00,000.
**Summary:**
The machine purchased on 1.4.2008 for Rs. 10,00,000 was depreciated on a straight-line basis over its useful life of 10 years. However, on 1.4.2010, it was found to be in good condition and will be used for another 10 years. Therefore, for the year ending 31.3.2011, the depreciation expense is calculated to be Rs. 1,00,000. This means that Rs. 1,00,000 will be deducted from the value of the machine to account for its wear and tear during that year.
To calculate the depreciation for the year ending 31.3.2011, we need to consider the following information:
1. Purchase Date: 1.4.2008
2. Purchase Cost: Rs. 10,00,000
3. Useful Life: 10 years
4. Condition: Good
5. Extended Useful Life: 10 years
**Step 1: Determine the Annual Depreciation Rate**
The annual depreciation rate can be calculated by dividing the cost of the machine by its useful life. In this case, the cost of the machine is Rs. 10,00,000 and the useful life is 10 years. Therefore, the annual depreciation rate is:
Annual Depreciation Rate = Cost of the Machine / Useful Life
= Rs. 10,00,000 / 10
= Rs. 1,00,000 per year
**Step 2: Calculate the Depreciation Expense for the Year Ending 31.3.2011**
Since the machine was found to be in good condition on 1.4.2010 and will be used for another 10 years, the depreciation expense for the year ending 31.3.2011 can be calculated as follows:
Depreciation Expense = Annual Depreciation Rate * Number of Years of Usage
= Rs. 1,00,000 * 1
= Rs. 1,00,000
Therefore, the depreciation expense for the year ending 31.3.2011 is Rs. 1,00,000.
**Summary:**
The machine purchased on 1.4.2008 for Rs. 10,00,000 was depreciated on a straight-line basis over its useful life of 10 years. However, on 1.4.2010, it was found to be in good condition and will be used for another 10 years. Therefore, for the year ending 31.3.2011, the depreciation expense is calculated to be Rs. 1,00,000. This means that Rs. 1,00,000 will be deducted from the value of the machine to account for its wear and tear during that year.
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A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1,4,2010, it was found that machine is in a good condition and will be used in the production for another 10 years. Find The amount at depreciation for the year ending 31.3.2011?
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A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1,4,2010, it was found that machine is in a good condition and will be used in the production for another 10 years. Find The amount at depreciation for the year ending 31.3.2011? 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 A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1,4,2010, it was found that machine is in a good condition and will be used in the production for another 10 years. Find The amount at depreciation for the year ending 31.3.2011? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A machine purchases on 1.4.2008 for Rs. 10,00,000 was depreciated on straight line basis over its useful life of 10 years. On 1,4,2010, it was found that machine is in a good condition and will be used in the production for another 10 years. Find The amount at depreciation for the year ending 31.3.2011?.
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