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Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method?
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Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase anothe...
Plant Account for 3 years with 10% WDV Method Depreciation
1. Calculation of Depreciation:
- The rate of depreciation is given as 10% on the Written Down Value (WDV) method. This means that the depreciation will be calculated on the remaining value of the asset each year.
- The depreciation for the first year will be 10% of the initial cost of the asset, which is Rs. 60,000. Therefore, the depreciation for the first year will be Rs. 6,000.
- The WDV at the end of the first year will be Rs. 60,000 - Rs. 6,000 = Rs. 54,000.
- Similarly, the depreciation for the second year will be 10% of Rs. 54,000, which is Rs. 5,400.
- The WDV at the end of the second year will be Rs. 54,000 - Rs. 5,400 = Rs. 48,600.
- Finally, the depreciation for the third year will be 10% of Rs. 48,600, which is Rs. 4,860.
2. Plant Account for 1 Jan 2015 to 31 Dec 2015:
- Opening balance of Plant Account = Rs. 0 (as no previous purchases were made)
- Add: Purchase of Plant on 1 Jan 2015 = Rs. 60,000
- Less: Depreciation for the year (10% of Rs. 60,000) = Rs. 6,000
- Closing balance of Plant Account = Rs. 60,000 - Rs. 6,000 = Rs. 54,000
3. Plant Account for 1 Jan 2016 to 31 Dec 2016:
- Opening balance of Plant Account = Rs. 54,000 (from the previous year)
- Add: Purchase of Machinery on 1 Jul 2015 = Rs. 50,000
- Less: Depreciation for the year (10% of Rs. 54,000) = Rs. 5,400
- Closing balance of Plant Account = Rs. 54,000 + Rs. 50,000 - Rs. 5,400 = Rs. 98,600
4. Plant Account for 1 Jan 2017 to 31 Dec 2017:
- Opening balance of Plant Account = Rs. 98,600 (from the previous year)
- Less: Sale of 1/3rd of Plant on 1 Oct 2016 = Rs. 11,000
- Add: Purchase of Plant on 1 Oct 2016 = Rs. 30,000
- Less: Depreciation for the year (10% of Rs. 48,600) = Rs. 4,860
- Closing balance of Plant Account = Rs. 98,600 - Rs. 11,000 + Rs. 30,000 - Rs. 4,860 = Rs. 113,740
5. Plant Account Summary:
- 1 Jan 2015 to 31 Dec 2015: Rs. 54,000
- 1 Jan 2016 to 31 Dec 2016
1. Calculation of Depreciation:
- The rate of depreciation is given as 10% on the Written Down Value (WDV) method. This means that the depreciation will be calculated on the remaining value of the asset each year.
- The depreciation for the first year will be 10% of the initial cost of the asset, which is Rs. 60,000. Therefore, the depreciation for the first year will be Rs. 6,000.
- The WDV at the end of the first year will be Rs. 60,000 - Rs. 6,000 = Rs. 54,000.
- Similarly, the depreciation for the second year will be 10% of Rs. 54,000, which is Rs. 5,400.
- The WDV at the end of the second year will be Rs. 54,000 - Rs. 5,400 = Rs. 48,600.
- Finally, the depreciation for the third year will be 10% of Rs. 48,600, which is Rs. 4,860.
2. Plant Account for 1 Jan 2015 to 31 Dec 2015:
- Opening balance of Plant Account = Rs. 0 (as no previous purchases were made)
- Add: Purchase of Plant on 1 Jan 2015 = Rs. 60,000
- Less: Depreciation for the year (10% of Rs. 60,000) = Rs. 6,000
- Closing balance of Plant Account = Rs. 60,000 - Rs. 6,000 = Rs. 54,000
3. Plant Account for 1 Jan 2016 to 31 Dec 2016:
- Opening balance of Plant Account = Rs. 54,000 (from the previous year)
- Add: Purchase of Machinery on 1 Jul 2015 = Rs. 50,000
- Less: Depreciation for the year (10% of Rs. 54,000) = Rs. 5,400
- Closing balance of Plant Account = Rs. 54,000 + Rs. 50,000 - Rs. 5,400 = Rs. 98,600
4. Plant Account for 1 Jan 2017 to 31 Dec 2017:
- Opening balance of Plant Account = Rs. 98,600 (from the previous year)
- Less: Sale of 1/3rd of Plant on 1 Oct 2016 = Rs. 11,000
- Add: Purchase of Plant on 1 Oct 2016 = Rs. 30,000
- Less: Depreciation for the year (10% of Rs. 48,600) = Rs. 4,860
- Closing balance of Plant Account = Rs. 98,600 - Rs. 11,000 + Rs. 30,000 - Rs. 4,860 = Rs. 113,740
5. Plant Account Summary:
- 1 Jan 2015 to 31 Dec 2015: Rs. 54,000
- 1 Jan 2016 to 31 Dec 2016
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Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method?
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Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method? 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 Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method?.
Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method? 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 Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Mr a purchase a plant costing rs60000 on 1 Jan 2015 he purchase another machinery for rs50000 ok 1 July same year on1 oct 2016 he sold 1/3rd of plant for 11000 and purchase another plant for 30000 on the same date prepare plant a/c for 3 yrs if rate of depreciation is 10% on wdv method?.
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