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Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be?
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Seven years lease has been purchased for sum of Rs. 60,000 and it is p...
Calculation of Balance of Lease A/c at the end of 1st year using Annuity Method:
Annuity method is used to calculate the depreciation of leasehold property. In this method, the annual depreciation is calculated as a fixed percentage of the leasehold property value.
Step 1: Calculating Annual Depreciation
Using the annuity table, the annual depreciation for the leasehold property is calculated as Rs. 9996.55.
Step 2: Calculating the Balance of Lease A/c at the end of the 1st year
To calculate the balance of the Lease A/c at the end of the 1st year, we need to subtract the annual depreciation from the initial value of the leasehold property.
Initial value of the leasehold property = Rs. 60,000
Annual Depreciation = Rs. 9996.55
Balance of Lease A/c at the end of the 1st year = Rs. 50,003.45
Therefore, the balance of the Lease A/c at the end of the 1st year will be Rs. 50,003.45.
Explanation:
The leasehold property has been purchased for Rs. 60,000, and it has been proposed to depreciate it under the annuity method. As per the given annuity table, the annual depreciation for the leasehold property is Rs. 9996.55. Therefore, the balance of the Lease A/c at the end of the 1st year can be calculated by subtracting the annual depreciation from the initial value of the leasehold property. The balance of the Lease A/c at the end of the 1st year will be Rs. 50,003.45.
Annuity method is used to calculate the depreciation of leasehold property. In this method, the annual depreciation is calculated as a fixed percentage of the leasehold property value.
Step 1: Calculating Annual Depreciation
Using the annuity table, the annual depreciation for the leasehold property is calculated as Rs. 9996.55.
Step 2: Calculating the Balance of Lease A/c at the end of the 1st year
To calculate the balance of the Lease A/c at the end of the 1st year, we need to subtract the annual depreciation from the initial value of the leasehold property.
Initial value of the leasehold property = Rs. 60,000
Annual Depreciation = Rs. 9996.55
Balance of Lease A/c at the end of the 1st year = Rs. 50,003.45
Therefore, the balance of the Lease A/c at the end of the 1st year will be Rs. 50,003.45.
Explanation:
The leasehold property has been purchased for Rs. 60,000, and it has been proposed to depreciate it under the annuity method. As per the given annuity table, the annual depreciation for the leasehold property is Rs. 9996.55. Therefore, the balance of the Lease A/c at the end of the 1st year can be calculated by subtracting the annual depreciation from the initial value of the leasehold property. The balance of the Lease A/c at the end of the 1st year will be Rs. 50,003.45.
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Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be?
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Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be? 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 Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be?.
Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be? 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 Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Seven years lease has been purchased for sum of Rs. 60,000 and it is proposed to depreciate it under annuity method. In reference to annuity table, Rs. 9996.55 should be charged to Depreciation A/c. Balance of Lease A/c at the end of the 1st year will be?.
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