CA Foundation Exam  >  CA Foundation Questions  >  On October 1, 2005, two machines costing Rs. ... Start Learning for Free
On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:?
Most Upvoted Answer
On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 res...
Depreciation for the 2007-08 year:
Prerequisite Information:
- Cost of machine 1 purchased in 2005: Rs. 20,000
- Cost of machine 2 purchased in 2005: Rs. 15,000
- Cost of new machine 1 purchased in 2009: Rs. 25,000
- Cost of new machine 2 purchased in 2009: Rs. 20,000
- Sale value of discarded machine 1: Rs. 10,000
- Expected sale value of discarded machine 2: Rs. 5,000
- Depreciation rate: 15%

Calculation Steps:
1. Calculate the written down value (WDV) of each machine in 2006-07:
- WDV of machine 1 = Cost of machine 1 - Depreciation for 2005-06
- WDV of machine 2 = Cost of machine 2 - Depreciation for 2005-06
2. Calculate the depreciation for 2006-07 using the WDV of each machine.
3. Calculate the WDV of each machine in 2007-08:
- WDV of machine 1 = WDV of machine 1 - Depreciation for 2006-07
- WDV of machine 2 = WDV of machine 2 - Depreciation for 2006-07
4. Calculate the depreciation for 2007-08 using the WDV of each machine.

Result:
The depreciation for the 2007-08 year can be calculated by following the above steps. Make sure to consider the sale value of the discarded machine and adjust the depreciation accordingly.
Community Answer
On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 res...
15725+11794
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:?
Question Description
On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? 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 On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:?.
Solutions for On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? 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 On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? defined & explained in the simplest way possible. Besides giving the explanation of On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:?, a detailed solution for On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? has been provided alongside types of On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? theory, EduRev gives you an ample number of questions to practice On October 1, 2005, two machines costing Rs. 20,000 and Rs. 15,000 respectively, were purchased. On March 31, 2009, both machines had to be discarded because of damage and had to be replaced by two machines costing Rs. 25,000 and Rs. 20,000 respectively. One of the discarded machines was sold for Rs. 10,000 and against the other it was expected that Rs. 5,000 would be realized. The firm provides depreciation @15% on written down value method.Depriciation for the 2007-08 year is:? 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