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The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.?
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The balance of machinery on baishak 1st 2077 was rs. 224000. It was pu...
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Cost of Machine:
The cost of the machine refers to the original cost incurred by the company to purchase the machinery. In this case, the balance of machinery on Baishak 1st 2077 was Rs. 224000. Therefore, the cost of the machine is Rs. 224000.
Depreciation:
Depreciation is a process of allocating the cost of an asset over its useful life. In this case, the depreciation was charged at a rate of 20% p.a. under the diminishing balance method. The diminishing balance method is a method of depreciation in which the depreciation is charged at a fixed rate on the reducing balance of the asset. The formula for calculating depreciation under the diminishing balance method is:
Depreciation = Opening balance of the asset * Rate of depreciation
The opening balance of the asset is the original cost of the asset. The rate of depreciation is the percentage at which the asset is depreciated. In this case, the rate of depreciation is 20% p.a. Therefore, the depreciation charged on this machine would be:
Depreciation = Rs. 224000 * 20% = Rs. 44800
Book Value:
The book value of an asset is the value of the asset as it appears in the company's books of accounts. The book value of the asset is calculated by subtracting the accumulated depreciation from the original cost of the asset. In this case, the machine was purchased on Baishak 1st 2075 and depreciation was charged at a rate of 20% p.a. under the diminishing balance method. Therefore, the accumulated depreciation on the machine as on Chaitra 31, 2077, would be:
Accumulated Depreciation = Rs. 224000 * (1 - (1+20%)^3) = Rs. 111360
The book value of the machine as on Chaitra 31, 2077, would be:
Book Value = Rs. 224000 - Rs. 111360 = Rs. 112640
Sale of Machine:
On Chaitra 31, 2077, the machine was sold for Rs. 180000. Therefore, the company made a loss on the sale of the machine. The loss on the sale of the machine would be:
Loss on Sale of Machine = Book Value - Sale Value = Rs. 112640 - Rs. 180000 = Rs. 67360
Therefore, the cost of the machine is Rs. 224000, and the loss on the sale of the machine is Rs. 67360.
Cost of Machine:
The cost of the machine refers to the original cost incurred by the company to purchase the machinery. In this case, the balance of machinery on Baishak 1st 2077 was Rs. 224000. Therefore, the cost of the machine is Rs. 224000.
Depreciation:
Depreciation is a process of allocating the cost of an asset over its useful life. In this case, the depreciation was charged at a rate of 20% p.a. under the diminishing balance method. The diminishing balance method is a method of depreciation in which the depreciation is charged at a fixed rate on the reducing balance of the asset. The formula for calculating depreciation under the diminishing balance method is:
Depreciation = Opening balance of the asset * Rate of depreciation
The opening balance of the asset is the original cost of the asset. The rate of depreciation is the percentage at which the asset is depreciated. In this case, the rate of depreciation is 20% p.a. Therefore, the depreciation charged on this machine would be:
Depreciation = Rs. 224000 * 20% = Rs. 44800
Book Value:
The book value of an asset is the value of the asset as it appears in the company's books of accounts. The book value of the asset is calculated by subtracting the accumulated depreciation from the original cost of the asset. In this case, the machine was purchased on Baishak 1st 2075 and depreciation was charged at a rate of 20% p.a. under the diminishing balance method. Therefore, the accumulated depreciation on the machine as on Chaitra 31, 2077, would be:
Accumulated Depreciation = Rs. 224000 * (1 - (1+20%)^3) = Rs. 111360
The book value of the machine as on Chaitra 31, 2077, would be:
Book Value = Rs. 224000 - Rs. 111360 = Rs. 112640
Sale of Machine:
On Chaitra 31, 2077, the machine was sold for Rs. 180000. Therefore, the company made a loss on the sale of the machine. The loss on the sale of the machine would be:
Loss on Sale of Machine = Book Value - Sale Value = Rs. 112640 - Rs. 180000 = Rs. 67360
Therefore, the cost of the machine is Rs. 224000, and the loss on the sale of the machine is Rs. 67360.
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The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.?
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The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.?.
The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.?.
Solutions for The balance of machinery on baishak 1st 2077 was rs. 224000. It was purchased on baishak 1st 2075. Depreciation was charged 20%p.a. under diminishing balance method. On chaitra 31,2077 the machine was sold for rs. 180000. a. Cost of Machine.? in English & in Hindi are available as part of our courses for Commerce.
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